North Carolina’s online sports gambling revenue soars; see where money is being spent

ASHEVILLE, N.C. (WLOS) — In less than two months, North Carolina saw a huge spike in revenue from online sports gambling.

That comes after it was legalized statewide on March 11.

A new report on exactly how much money the state is making off the change is surprising some in the gambling industry.

According to data from the North Carolina State Lottery Commission, in March, the gross wagering revenue was $66,496,213.

At an 18% tax rate, that totals $11.9 million in state revenue.

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In April, the numbers jumped to $105,251,672 in gross wagering revenue, and $18.9 million in state revenue.

Robert Linnehan with Sports Betting Dime says the data is surprising.

“I don’t think the fiscal estimates that were provided with this bill thought they would come close to geez, nearly $30 million in tax revenue already,” he said.

Predictions were closer to $60 million for the entire year.

“You couldn’t have asked for a much better start in the Tar Heel State really, to be honest with you,” said Linnehan.

North Carolina was the 38th state to legalize online sports betting.

Linnehan says he could see the state being in the top 10 nation-wide when it comes to total dollars brought in.

“It’s definitely a start that I don’t think a lot of people expected,” Linnehan said. “It’s definitely an optimistic start for NC, they’re bringing in a lot more money than I think they thought they were during the first two months.”

He tells News 13 that after covering the cost to collect taxes, the revenue is earmarked for specific uses.

That includes $2 million for gambling addiction education and treatment, $1 million for local youth sports, another million for sports teams and nonprofessional athletes, and $300,000 to 13 state college athletic departments.

After that, 50% of any additional revenue would go to the state’s general fund, 30% to events, games and attractions and 20% to UNC colleges.

Elon university professor David Bockino says the revenue will increase drastically this fall when college and professional football seasons are underway.

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“We’re on pace, probably,” said Bockino. “I did some numbers in terms of projections, probably $200 million dollars just this year.”

Despite the big numbers, there is still one big concern.

Many are worried about how it will impact those in North Carolina struggling with gambling addictions.

“You know I don’t think the addiction stuff can be handled from a state level,” said Bockino. “I think some of the hotlines and stuff are nice gestures and it really takes an all hands on deck effort when you’re talking about an activity as addicting as gambling.”

“Certainly when any new form of gaming is legalized, you do have concerns that problem gambling rates will increase,” Linnehan agrees.