NORTH CAROLINA — Sports betting has been underway in North Carolina for over a year, but where does the gross wagering revenue go? 

With March madness holding rounds in North Carolina, sports are top of mind for the state. Home fans and those from out of state will place bets on their favorite team this weekend, just over a year from when it became legal in the state.  

In a one-year anniversary report, the N.C. State Lottery Commission said North Carolinians have bet more than $6.6 billion in bets both paid and promotional. From those wagers, players have won more than $5.85 billion in the state’s first year of legal betting. 

Besides licensing fees, the state is gaining proceeds on an 18% tax on the gross wagering revenue from sports wagering. 

According to the N.C. State Lottery Commission’s report, the state’s gross wagering revenue totals more than $713 million. With the 18% tax, the state is projected to receive more than $128 million in proceeds. 

Sports wagering tax proceeds are collected by the North Carolina Department of Revenue by state law, to support programs across the state, from N.C. Problem Gambling Program to youth and collegiate sports. 

UNC Pembroke is one of the 13 state universities receiving up to $300,000 annually as well as a remaining 20% of revenue divided amongst the schools. 

“It's been tremendous. You know, we were really at a precipice, a major crossroads with small college athletics and the UNC system,” said Dick Christy, UNC Pembroke’s athletic director. “The long-time standing funding model just wasn't fitting the new the new student makeup of our universities.”  

Christy said with the additional benefits from the state, the school has developed a five-year plan. They're starting by getting out of deficit spending, which plagued the campus from lost revenue during COVID, and will then target adding on services which the school may have lacked. 

“We've got a number of things that our strategic plan over the next four and five years that if sports betting is where it needs to be, and if we're able to get out of deficit spending, we can incrementally be able to take advantage of those funds,” Christy said. 

Christy said the school is expecting to get close to $2 million from the state from sports betting gross wagering tax revenue, and hopes to update resources such as added scholarships, nutrition services, team training, tutoring and more. 

It will allow the school to be more competitive when it comes to athletic recruitment. 

“We're going to, we're going to provide an average experience for everybody. Is selling them on the moon. We want to be able to consistently provide that and back up what we're what we're telling parents and students, whether that be a transfer or high school student,” Christy said. 

UNCP has advanced to the Division II Sweet Sixteen for the first time in the university's basketball history.

Youth sports are also getting in on the funding, with $1 million going toward Youth Amateur Sports.

Raleigh Parks and Recreation and Cultural Resources Department Assistant Director Ken Hisler applied for a grant from the Youth Amateur Sports funding, receiving around $6,000 for Youth Sports Program Equipment.

“One of the great benefits of receiving the grant is that we can really accommodate that growth without having to go back and ask for additional funding through our annual budget or reallocation of resources,” Hisler said. 

Hisler said the interest in Raleigh’s park and rec youth athletics has grown roughly 15% from last year. 

“It's really meeting a diversity of needs to be able to buy equipment. And one of the other things we often like to do when we get these opportunities is how can we support our coaches as well,” Hisler said. “Can we get them pinnies? Can we get them cones? Can we get different things to help with training practice that they don’t have.”

Hisler said he will continue to apply for grants in the future and hopes to be awarded more funding through sports betting tax revenue in the future. 

“Youth Athletics, it really is just a great skill building. A ton of teamwork of how you're going to be successful in life, comes a lot through sport,” Hisler said.

Department of Health and Human Services for gambling addiction education and treatment programs will receive $2 million in funding annually. 

A representative from the NCDHHS department of communications said the rules of the lottery may have safeguards in place for those who are at risk of problem gambling. 

An email from NCDHHS reads in part, “The law allocated an additional $2 million in the state budget to help prevent, treat, and provide services related to problem gambling. The rules which the lottery has prescribed provide many safeguards for residents, especially those at risk of problem gambling.”

They say signs of problem gambling include: 

• Using sports betting to relieve stress or depressive feelings 
• Spending increasing amounts of time or money on gambling 
• Preoccupation and irritability when trying to cut back or not gambling 
• Placing bets on credit or with money allocated for other things 
• Chasing losses (gambling to earn back money that was lost gambling) 
• Lying or being secretive about gambling 
• Attempting to cut back without success 
• Only talking about wins, and never losses

The state also has partnerships with EPIC risk management, an NCAA funded organization, to further provide education and prevention resources on college campuses to athletes and students about the risks of sports betting. 

“Our messaging hasn't changed to our student athletes. If you work in collegiate athletic space or if you're a student athlete, this is off limits for you. Continuing our messaging about ‘don't bet on it’ and ensuring that our athletes are insulated from this but still being transparent that this is a tax resource that has been earmarked for us for a reason,” Christy said. 

April 2024 had the highest gross wagering revenue at over $105 million. 

Here is the complete breakdown of where the tax proceeds from gross sports wagering is, according to the North Carolina State Lottery Commission: 

• $2 million annually to the Department of Health and Human Services for gambling addiction education and treatment programs
• $1 million annually to North Carolina Amateur Sports to expand opportunities in youth sports
• Up to $300,000 annually to collegiate athletic departments at 13 state universities, including Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, N.C. Agricultural & Technical State University, N.C. Central University, University of North Carolina at Asheville, University of North Carolina at Charlotte, University of North Carolina at Greensboro, University of North Carolina at Pembroke, University of North Carolina at Wilmington, Western Carolina University, and Winston-Salem State University
• $1 million annually to the North Carolina Youth Outdoor Engagement Commission for grants of up to $5,000 per team or group, per county, to help cover the cost of travel to in-state or out-of-state sporting events and grants of up to $25,000 to attract amateur state, regional, area and national sporting events, tournaments and programs.
• Certain reimbursements to the N.C. State Lottery Commission and the N.C. Department of Revenue for expenses incurred to implement and administer the new law.

Remaining proceeds will be divided as follows: 

• 20% will be distributed evenly among the 13 state universities to support collegiate athletic departments
• 30% to a new North Carolina Major Events, Games and Attractions Fund to foster job creation and investment in the state
• 50% to the state’s General Fund

You can reach the North Carolina Problem Gambling Helpline at 877-718-5543

Related story: How new sports betting law will help N.C. universities