How Does North Carolina Sports Betting Affect the State?

North Carolina Governor Roy Cooper signed HB 347 into law on June 14, 2023. The signing is a result of the support of the bill, which earned a vote of 37-11. This signing also means that sports betting will soon be legal in the Tar Heel State. Let's dig deeper and see what it means for the State when online sports betting is legalized in NC.

How long until the Online Sports Betting Launch in North Carolina?

Governor Roy Cooper has shared that the North Carolina Lottery Commission aims to commence operations before the start of March Madness. This NCAA Tournament starts in mid-March after Selection Sunday on March 17th. 

However, the State authorities are still in the process of completing the regulations and licensing requirements for betting, which will determine the exact date when sports betting will be launched. Thus, there is no exact date set for the initiation of North Carolina sports betting as of now.

Why Legalize Online North Carolina Sports Betting?

The reason is obvious. The legalization of online betting in North Carolina is going to bring numerous benefits. With sports betting already a reality in 35 states, including Washington, D.C., NC joins the movement that has seen positive outcomes. From the 26 states and D.C., they have successfully implemented mobile sports betting, enhancing accessibility and convenience. 

NC and other states are in the process of introducing their own online betting platforms. This development will open up exciting opportunities and advantages for the state. Let's look into the potential positive impacts of North Carolina's move to legalize online sports betting.

Income from Online Sports Betting

One of the major advantages of sports betting is the potential to bring in income to the state, This is a key point in the debates and deliberations among state committees responsible for establishing sports betting regulations. The amount of tax revenue a state can accumulate depends on the final tax rates set. 

Sports betting wagers can potentially contribute to a state's tax collections. When legalized and properly regulated, sports betting can generate tax revenue through various means, such as taxes on betting operators' revenue or licensing fees. 

However, the extent of the contribution depends on factors such as the specific tax structure implemented by the state and the popularity of sports betting within the jurisdiction. It is important to note that the actual impact on tax collections may vary and should be assessed based on the specific circumstances of each state.

While it is true that the Tar Heel State imposes an 18% tax on gross sports wagering revenue, the projected tax revenue of over $500 million by the fifth year following the implementation of sports betting regulations is a hypothetical scenario based on projections. 

The actual amount of tax revenue generated can be influenced by various factors, including the popularity of sports betting, the number of operators, and the overall performance of the industry. 

It is important to note that these projections are subject to change and should be treated as estimates rather than definitive figures. The distribution of tax revenue throughout the North Carolina community would depend on the state's allocation policies and priorities.

College, Youth Sports and Additional Initiatives To Gain

Thirteen universities in North Carolina will receive benefits from this tax revenue. Each institution is eligible for a maximum of $300,000 annually, directed to their athletic departments. The universities receiving these funds are:

• Appalachian State
• East Carolina
• Elizabeth City State
• Fayetteville State
• NC Agricultural & Technical State
• NC Central
• North Carolina at Asheville
• NC at Charlotte
• North Carolina at Greensboro
• NC at Pembroke
• North Carolina at Wilmington
• Western Carolina
• Winston-Salem State

On top of that, the bill stipulates an annual allocation of $2 million to the Department of Health and Human Services. This funding is intended for gambling addiction services and treatment programs, aiming to promote responsible sports betting within the NC community and prevent gambling-related issues.

Back to college and youth sports, the recently enacted sports legislation in the state, HB 347, features a section dedicated to yearly contributions for North Carolina Amateur Sports. From the tax revenue generated by betting, $1 million is earmarked annually for youth sports to enhance facilities and leagues, fostering more opportunities for young athletes in North Carolina.

Furthermore, $1 million per annum is allocated to the North Carolina Outdoor Heritage Advisory Council. This funding will be utilized for grants aiding in sports travel expenses and might also attract more sports events to the state, boosting its revenue.

The North Carolina sports betting law, signed by Governor Cooper, will positively bring significant benefits to the state. However, the exact launch date for online sports betting is yet to be announced. This move is expected to generate substantial revenue, bringing some benefits such as State revenue enhancement, support for sports and youth and even jobs. 

To top it, there will be many North Carolina sportsbook promotions available for players too. Online betting will enhance the experience of watching sports for everyone in the Bay State.

The launch of online betting in North Carolina has the potential to create new economic opportunities and support community programs. By legalizing and regulating online sports betting, the state can generate additional revenue through taxes and licensing fees. 

This revenue can be used to fund various community programs, such as education, healthcare, infrastructure development, and initiatives aimed at supporting local businesses. Additionally, the introduction of betting can stimulate economic growth by attracting new businesses, creating job opportunities, and increasing tourism.

More about Sports Betting in NC