(The Center Square) – Fiscal year 2027 revenue from legalized sports wagering in North Carolina roared out with more than $14 million in July, taxpayers’ purse profiting from the first month with a new 23% tax on gross wagering revenue.
Since inception in 2024, the tax had been 18%. Also changed is the distribution model that adds Carolina and N.C. State, with each projected to receive nearly $6 million annually.
According to the State Lottery Commission, more than $566 million was wagered on sporting events and bettors won just shy of $499 million. Gross wagering revenue is the amounts received by interactive sports wagering operators from sports wagers as authorized under state law, less the amounts paid as winnings before any deductions for expenses, fees or taxes.
The gross wagering revenue taxed was $63,215,572.
The Center Square analyzes sports wagering monthly as part of its mission for reporting of government accountability and how taxpayers are impacted by fiscal policy decisions.
For perspective on state revenue, the individual income tax is the state’s largest revenue source and its increase in fiscal year 2025 was more than $637 million. Sales and use tax generate an estimated $5 billion annually. The corporate income tax and franchise tax are other streams topping the sports wagering windfall.
Revenue in July has historically been among the low months of the year – just $7.6 million the first year and barely over $4 million last summer.
With the old 18% formula, the state would still have reaped $11,378,802 – a difference to the positive for state coffers of more than $2.6 million. The last two Julys combined brought the state $11.6 million. This year’s $14,038,810 – barely missing the all-time top five months – is more than $8.1 million higher than the July average.
Since inception March 11, 2024, the state coffers have been swelled by $323,202,346 in 873 days available for play. That’s an average per day of $370,220.
The best months for the state’s total take are April 2024 ($18,945,301), November ($16,728,516), December ($14,672,613), January ($14,460,977) and October ($14,066,214).
In addition to the licensed sportsbook operator tax rising from 18% to 23% and athletic funds going to UNC Chapel Hill and N.C. State, gamblers itemizing deductions can claim up to $2,000. The latter move is forecast to reduce general fund revenue by about $19 million.
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