In the two years since legal online sports betting has been active in North Carolina, the state has collected more than $250 million in fees and taxes from the industry.
The distribution of that state revenue was outlined in the state law that legalized sports gambling. And it’s a list of organizations and programs that changed many times as proponents of legal sports betting sought to secure majority support for the legislation.
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“That money goes to really good programs and good things in the state,” said former state Rep. Jason Saine, who led the multi-year effort in the state legislature.
Despite legislative efforts to tinker with the distribution formula, including changes passed separately by the state House and Senate last year, the original disbursement terms remain in place.
A new WRAL Documentary, “The Gamble: Sports Betting in North Carolina,” explores the impact of legal betting in the state, including a look at those who are receiving money from the industry.
“The fact that states are getting some money out of this, it kind of feels like blood money,” said George Kamel, a personal finance expert and co-host of The Ramsey Show. “There’s no other way to say it.”
In North Carolina, bettors have wagered more than $13.2 billion in paid bets and more than $700 million in free or promotional wagers offered by the eight legal operators. Those bets have produced $1.5 billion in gross wagering revenue for the operators, according to the way North Carolina calculates it.
Operators pay an 18% tax on those gross wagering revenues.
Through the end of January, the state had collected more than $250 million, according to the Department of Revenue. North Carolina collected another $10.5 million in February, according to monthly tax estimates released by the North Carolina State Lottery Commission, which oversees sports gambling in the state.
Here’s where money from North Carolina sports bets goes
Gambling addiction treatment and education
Total: $6 million ($2 million each fiscal year)
The North Carolina Department of Health and Human Services gets $2 million annually for help with gambling addiction treatment and education programs.
Calls and texts to the state’s gambling hotline are up 50% and 40%, respectively, since legalization, according to Kelly Crosbie, the director of the division of mental health, developmental disabilities and substance abuse services.
“Two million [dollars] might seem like a lot,” she said, “but when you spread it statewide and you think about the number of schools and colleges you have and you compare it to the amount of revenue that goes into advertising for sports betting, it’s kind of a drop in the bucket.”
She added: “I don’t mean to be ungrateful for the $2 million that we get, but it truly pales in comparison” to the revenue that sportsbook operators and the state are making.
Some of that money goes to the Gambling Research and Policy Initiative at East Carolina University led by Michelle Malkin.
“The $2 million that they have going to DHHS, the vast majority of that is going towards treatment and some education, but it’s not enough to support everything,” Malkin said.
Youth sports
Total: $6 million ($1 million annually to two statewide youth sports organizations)
North Carolina Amateur Sports has awarded 191 grants (out of 320-plus applications) totaling $2 million to organizations in all of the state’s 100 counties through its Youth Sports Grant program for sports equipment and facilities. Each county receives grants up to $10,000 annually.
In Wake County, the parks and recreation departments in Morrisville, Raleigh and Holly Springs received grants. In Durham, the Durham YMCA and South Durham Little League were awarded grants.
The organization is reviewing applications for its 2025-26 grants. The group has received 277 applications and expects more than 400 before the period ends.
“We’re very grateful that the N.C. General Assembly dedicated some of the sports wagering revenues to support youth sports in our state, but $1 million annually is not enough to meet the needs in all 100 counties, so we’re hoping this fund will receive more funding in the future,” said Chuck Hobgood, president of North Carolina Amateur Sports, in an email to WRAL.
The N.C. Youth Outdoor Engagement Commission gets $1 million annually with $500,000 available for host grants up to $25,000 each and $500,000 available for travel expenses up to $5,000 per county.
The commission awarded $500,000 in host funding and more than $303,000 in travel funding in the fiscal year that ended June 30. Among the events funded in the last fiscal year were the Hatteras Community Sailing’s Southeast US Regional Sailing Regatta in Dare County and regional shooting competitions hosted by Foothills Public Shooting Complex in Cleveland County.
North Carolina Major Events, Games and Attractions Fund
Total: $66.9M (30% of remaining funds after dedicated distributions)
The fund was created as part of the state law legalizing sports gambling. Modeled after similar funds in other states, including Texas, the money is used to help attract large events by providing grants to help local communities, event organizers and organizing committees make competitive bids.
In 2026, North Carolina committed $13.5 million through the fund for several events: NASCAR Cook Out Clash in Winston-Salem, NASCAR Race the Rock in Richmond County, The Soccer Tournament 7v7 in Cary, World Cup Soccer Sendoff Game in Charlotte, MLS All-Star Game in Charlotte, Biltmore Championship Asheville in Arden, NHRA Nationals in Richmond County and HBCU Battle of the Bands in Greensboro.
Organizers received a $2 million grant for the MLS All-Star Game, set for late July. College stadiums and venues such as Carter-Finley Stadium in Raleigh, Kenan Stadium in Chapel Hill or Cameron Indoor Stadium in Durham don’t currently qualify.
“It feels a bit like an arms race,” Scott Dupree, the executive director of the Greater Raleigh Sports Alliance, told WRAL last year. “Things become more expensive, events become more expensive and become way more competitive. It’s a very, very competitive industry. Support now from the state that we’re getting from the major events really makes a difference — and it starts to level the playing field because, for several years now, for many years, other states have had access to state money.”
Organizers across the state have discussed bringing the NHL All-Star Game, NCAA championships in wrestling or ice hockey, the Army-Navy football game and or the NFL Draft to the state.
“We can start talking things like Super Bowls. Olympics could be on the table,” Saine said.
Because sports betting revenue has far exceeded legislative projections, the fund has grown more quickly than anticipated. Saine, who is no longer in the legislature, said the distribution formula could be readjusted to move some money away from the fund in the future.
“We’re able now to attract big events into this state, which means that whether you’re a sports fan or not, you are going to benefit from the fact that we are bringing big events into the state,” Saine said.
“... The small investment from the major events fund can bring returns for years to come.”
PODCAST: Four-part series on how sports betting was legalized in NC
Athletic departments at 13 UNC System universities
Total: $56.3M (divided between each school; $300,000 off the top to each university and then 20% of remaining funds after dedicated distributions)
The list of schools that benefit from the fund was one of the major changes throughout the legislative process with the number of schools starting with the smallest schools and the state’s Historically Black Colleges and Universities and eventually growing to include all UNC System schools that sponsor intercollegiate athletics, except for North Carolina and NC State — the two richest public school athletic departments.
Thus far, each school has received more than $4.3 million. That’s big money for some of the smaller athletic departments around the state. An “absolute blessing,” is what UNC-Pembroke athletics director Dick Christy said in 2024.
The NCAA Division II school sponsors 16 sports, including football, with a budget of about $5 million.
“There was not going to be a new revenue stream to the state of North Carolina at this volume,” Christy told WRAL this spring. “So very quickly we became advocates for it.”
Smaller schools — without access to major television contracts, deep-pocketed donors or massive stadium ticket revenue — depend on student fees to fund their athletics departments. Those fees can only be charged to full-time students, so any dips in student population, due to COVID, natural disasters or just enrollment fluctuations can have major impacts.
The money from sports betting has helped mitigate the need for increases to student fees. At UNC-Pembroke, the sports betting revenue helped preserve all programs.
“The timing of sports betting was absolutely critical for us,” Christy said this spring.
General Fund
Total: $111.5 million (50% of revenue after dedicated distribution)
The General Fund is the state’s primary fund for paying for state services like education, public safety, transportation and health care. While the contribution to the General Fund is impressive, it is just a tiny proportion of the state’s spending. North Carolina’s budget is more than $30 billion.
Total
From April 2024 to January 2026
Source: Department of Revenue
Department of Health and Human Services: $6.0M
North Carolina Amateur Sports: $3.0M
NC Youth Outdoor Engagement Commission: $3.0M
North Carolina Major Events, Games, and Attractions Fund: $66.9M
Appalachian State University: $4.3M
East Carolina University: $4.3M
Elizabeth City State University: $4.3M
Fayetteville State University: $4.3M
North Carolina A&T State University: $4.3M
North Carolina Central University: $4.3M
University of North Carolina at Asheville: $4.3M
University of North Carolina at Charlotte: $4.3M
University of North Carolina at Greensboro: $4.3M
University of North Carolina at Pembroke: $4.3M
University of North Carolina at Wilmington: $4.3M
Western Carolina University: $4.3M
Winston-Salem State University: $4.3M
Department of Revenue (administrative expenses): $370K
Lottery Commission (administrative expenses): $3.6M
General Fund: $111.5M
Total: $250.7M