Where The Money Goes
In North Carolina, licensed interactive sports wagering operators each pay 23% tax on their gross wagering revenues each month. Gross wagering revenue is the total amount of sports wagers (including bonuses or promotional credits) received by an interactive sports wagering operator, less the amounts paid as winnings before any deductions for expenses, fees or taxes.
The N.C. General Assembly sets the tax rate and determines how tax proceeds and license fees are allocated.
State law dictates that tax proceeds be distributed annually to designated beneficiaries and funds after reimbursements to the N.C. State Lottery Commission and the N.C. Department of Revenue for expenses for administering the law. Tax proceeds are allocated as follows:
$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.
$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.
- 19.5% – NCAA Division I & II Public Universities
Limit of $2,900,000 each - 5.7% – NCAA Division I Public Universities with a men’s football
team competing in a bowl
Limit of $2,500,000 each - 2.2% – NCAA Division I Public Universities
Limit of $400,000 each
30% – North Carolina Major Events, Games, and Attractions Fund
Limit of $30,000,000
The remainder goes to the North Carolina General Fund annually.
The North Carolina Department of Revenue provides information regarding taxes applicable to interactive sports wagering operators online.
NOTICE: The information included on this website is to be used only as a guide. It is not intended to cover all provisions of the law or every taxpayer’s specific circumstances.
