North Carolina House Budget Proposal to Modify Sports Betting Tax Revenue Distribution, Potential License Holders

Mar 23, 2024; Charlotte, NC, USA; North Carolina Tar Heels forward Armando Bacot (5) congratulates guard RJ Davis (4) after hitting a three point shot against Michigan State Spartans at Spectrum Center. Mandatory Credit: Jim Dedmon-USA TODAY SportsThe North Carolina House of Representatives presented a budget proposal that would modify the state’s sports betting tax revenue distributionThe University of North Carolina would receive a portion of the sports betting tax revenue as part of this proposalThe proposal will allow the Carolina Cowboys of the Professional Bull Riding league to partner with a sports betting operator

Just three months into legalized online sports betting and the North Carolina House of Representatives has proposed several changes to how tax revenues will be distributed to higher education facilities throughout the state.

The North Carolina House proposed a budget earlier this week that includes changes to the sports betting tax revenue distributions, potential professional sports franchises eligible to partner with a sports betting operator, and additional funding for a youth outdoor engagement commission.

If approved by the Senate and signed into law, the changes would go into effect on August 1.

Additional Schools Brought Into Revenue Plan

The House budget proposal earmarks more money for youth sports grants, brings in three additional UNC schools for athletic department funding, and allows an additional sports franchise in the state to partner with a sports betting operator.

Under the current sport betting bill law, the North Carolina Department of Revenue retains $0.5 million of tax revenue each year to offset the cost of collecting taxes, and the Lottery Commission will be reimbursed for any expenses not covered by fee revenue. After these costs are covered, the tax revenues are distributed as follows:

$2 million to the Department of Health and Human services for gambling addiction education and treatment programs$1 million to North Carolina Amateur Sports for local governments or nonprofits for youth sports equipment or facility upgrades$300,000 each to the 13 University of North Carolina constituent institutions to support college athletic departments$1 million to the North Carolina Youth Outdoor Engagement Commission for grants to assist sports teams with travel expenses and incentive grants to attract sports events for nonprofessional athletes

The colleges eligible to receive the $300,000 are Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina Agricultural & Technical State University, North Carolina 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.

If there are additional tax revenues they will be distributed in three ways:

20% distributed equally among the 13 UNC colleges noted above to support their athletic departments30% to the North Carolina Major Events, Games, and Attractions Fund50% to the general fund

Under the new budget proposal, an additional $5 million will be provided to the Youth Outdoor Engagement Commission and the North Carolina Major Events, Games, and Attractions Fund will be reduced to 25% of remaining tax revenues. The general fund would receive whatever is left over from the sports betting tax revenues.

The additional 5% of remaining revenues will be distributed equally among the following higher education facilities to support their collegiate athletic departments:

Appalachian State UniversityEast Carolina UniversityNorth Carolina Agricultural & Technical State UniversityNorth Carolina State UniversityUniversity of North Carolina at Chapel HillUniversity of North Carolina at Charlotte

Appalachian State University, East Carolina University, North Carolina Agricultural & Technical State University, and University of North Carolina at Charlotte will all be eligible to double-dip into sports betting tax revenues if this proposal is approved.

According to Brian Murphy of WRAL, the modifications to the sports tax revenue distributions are due to the fact that sports betting revenues have exceeded expectations so far.

“There’s so much more money coming in from sports betting than was originally forecast,” said Rep. Jason Saine (R-97).

Professional Bull Riding Now in Mix?

Additionally, the new proposal will allow a new professional sports team in the state to partner with a sports betting operator.

The proposal includes the Professional Bull Riders league as eligible to offer sports betting in the state. This will allow the Carolina Cowboys to partner with a sports betting operator to offer sports betting in North Carolina.

To legally be allowed to offer sports betting, an operator must first enter into an official partnership with a North Carolina sports team.

There are currently eight live licenses in the state. The North Carolina Panthers of the NFL and the NC Courage of the National Women’s Soccer League are two high profile sports franchises in the state that have yet to partner with an operator.

Here are the licensed sportsbooks and their partnerships that are currently live in the state:

bet365 North Carolina: Charlotte HornetsBetMGM North Carolina Charlotte Motor SpeedwayCaesars Sportsbook North Carolina: Tribal Casino Gaming Enterprise CherokeeDraftKings NC: NASCARFanatics Betting and Gaming: Carolina HurricanesFanDuel North Carolina: PGA TourPENN Sports Interactive (ESPN BET North Carolina): Quail Hollow Club (PGA Tour course)Underdog Sports: McConnell Golf