Gambling proceeds fall 20%, on pace for $78M in fiscal year

(The Center Square) – Monthly estimated revenue from legalized gambling might have fallen 20% from July to August in North Carolina, but it’s a rate that would still generate more than $60 million and an early pace for $78 million in the fiscal year.

Estimated tax proceeds fell from $7,600,687 to $6,075,183, the State Lottery Commission said in a release of sports betting revenue on Monday. College football began at the tail end and, along with the king of sports betting otherwise known as the NFL, this month goes into full swing through January.

The gross wagering revenue – 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 – in August was $33,751,015 . The sum multiplied by 18% – $6,075,183 – gives the state its take to dispense.

Through the first 174 days, North Carolina is averaging a gain of $363,214 per day on the $63,199,358 total. In context, many operators offered incentives early in what could also be described as a novelty, or honeymoon, period.

Still, the monthly takes have been $11,969,318 in 21 days of March, $18,945,301 in April, $11,354,462 in May, $7,254,407 in June, and $7,600,687 in July .

Bettors gambled 8.8% more and won just under 13% more than the previous month. Total gambled exceeded $370 million and total won topped $333 million.

Promotional wagering revenue, $202 million the first month, in August rose to $13.1 million from $12.4 million in July.

Five things, per Session Law 2023-42 , can happen with the proceeds. There’s $2 million annually to the Department of Health and Human Services for gambling addiction education and treatment programs; and there’s $1 million annually to the North Carolina Amateur Sports to expand youth sports opportunities.

Also annually, a third element is $300,000 to each of 13 state public school collegiate athletic departments. Fourth is $1 million annually to the N.C. Youth Outdoor Engagement Commission, which awards grants.

Finally, there are certain reimbursements to the state Lottery Commission and Department of Revenue for expenses incurred to implement and administer the new law. After that, it’s 20% to the 13 public collegiate athletic departments; 30% to a new fund to attract major events, games and investments; and 50% to the state’s General Fund.