Exploring the Sports Betting Tax Dynamics for Governments in North Carolina

About

As the largest
university-based local
government training,
advisory, and research
organization in the United
States, the School of
Government serves more
than 12,000 public officials
each year.

Browse by Role

The School provides
content and resources for a
wide array of local
government and judicial
officials in North Carolina.

Select your role to explore
all related content.

Browse by Topic

The School provides content
and resources on a wide array
of topics in local government
and judicial administration in
North Carolina.

Select a topic to explore all
related content.

Courses

The School of Government
offers up to 200 courses,
workshops, webinars, and
professional conferences
each year.

Publications

The School of Government
publishes essential books,
manuals, reports, articles,
bulletins, and other print and
online content related to state
and local government.

Blogs

Faculty write for a number
of School of Government
blogs providing timely
updates on emerging issues.

Resources

The School of Government
offers information and
services related to a wide
range of topics relevant to
government and judicial
officials—in-person and on a
variety of platforms.

Blog Posts

Timely updates on emerging issues

Centers and Services

Specialized training/research hubs and consulting services

Frequently Asked Questions

Aggregated answers to common questions on a variety of topics

Knapp Library

Print and online materials and research expertise

Legal Summaries

Brief descriptions of legal cases, bills, or legislative activity

Listservs

Information exchanges for peers and faculty experts

Microsites

In-depth or aggregated content for local government and judicial officials

Tools and Apps

Online and mobile tools for employees on-the-go

Master of Public
Administration Program

The UNC MPA program prepares public service leaders. The program is offered in two formats: on-campus and online.

For more information, visit mpa.unc.edu

Giving

The School of Government depends on private and public support for fulfilling its mission. Your gift will make a lasting impact on the quality of government and civic participation in North Carolina.

Knapp Library

The Joseph Palmer Knapp Library houses a large collection of material on state and local government, public administration, and management to support the School's instructional and research programs and the educational mission of the Master of Public Administration program. Reference and research services are available to all residents of North Carolina, and additional assistance is available to state and local government personnel, both elected and appointed.

Katie Geith

If you’ve turned on the TV, streamed music, or logged onto social media in North Carolina recently, you’ve likely seen ads for online sports betting companies inundating your feed. This is because legal online sports betting went live in North Carolina for the first time this month, on March 11, 2024.

The ability to legally place wagers online in North Carolina was preceded by Governor Cooper signing House Bill 347 (HB 347) in June 2023, which legalized betting on professional, college, and amateur sports, as well as horse racing. Proponents say the passage of the bill will boost the state’s budget and foster economic opportunity.

The State of North Carolina can receive revenue from sports betting by taxing the “hold,” which is the amount sportsbooks retain after all bets have been settled. Different states tax different amounts, but North Carolina’s rate is 18 percent, which can result in extra money for the state, depending on the volume of gambling. “100 million dollars in tax revenue for North Carolina seems reasonable after a year or two,” said Christopher B. McLaughlin, Albert and Gladys Hall Coates Distinguished Term Professor of Public Law and Government.

Additionally, sportsbooks must pay the state a licensing fee to operate. Currently, the rate is one million dollars for five years. HB 347 allows up to 12 interactive sports wagering licenses to be granted in the state. “100 million dollars in our state’s budget is less than one percent of the whole. However, it’s still better to have that additional revenue than not,” said McLaughlin. Some of the State’s additional funds are expected to go towards North Carolina Amateur Sports, 13 public universities, the state’s General Fund, and gambling addiction education programs and treatment, among other initiatives.

HB 347 allows for betting both online and in person at retail sportsbooks. Before the bill passed, sports betting was only legally allowed in person at three casinos located on tribal lands.

Building physical sportsbook locations provides local governments an opportunity to see some of the financial benefits of legalizing sports betting. “Local governments don’t have the opportunity to tax the activity of sports gambling, except through property taxes,” said McLaughlin. “Local governments could levy property taxes on the sportsbook and any associated development around it. They may see increased economic activity and tourism from building these locations.”

HB 347 places limitations on where sportsbook locations can be built. For instance, they must be near venues that are the home of professional sports teams that play at a national or major-league level, such as PNC Arena in Raleigh. They can also be near facilities that host golf tournaments with over 50,000 spectators, or at motorsports facilities that host more than one NASCAR national touring race annually. These restrictions affect the number of localities in that would benefit from building retail sportsbooks.

As North Carolina charts its course into legalized sports betting, the landscape of entertainment and revenue generation continues to shift. To learn more about HB 347 and its implications for state and local governments, read McLaughlin’s blog.