The University of North Carolina and North Carolina State University may finally be getting their share of revenue generated from state gambling taxes.
According to WRAL, North Carolina's two largest schools have until now been left out of the distribution of tax revenue generated from sports betting operators.
A new proposal expected to be introduced to the state budget, however, would include both UNC and NC State in a revamped distribution model.
The schools — along with other FBS members Appalachian State, Charlotte and East Carolina — could receive up to $5.8 million annually beginning July 1, 2027, according to the proposal, which was reviewed by WRAL.
Details of the proposal are expected to be debated by Senate and House leaders, with the spending deal possibly released as soon as this week.
WRAL also reported that the tax rate on sports betting operators will climb to 23% under the forthcoming budget. North Carolina launched online sports betting in March 2024 and operators have paid more than $300 million in taxes on gross wagering revenue at an 18% tax rate.
Gambling operators warn that the change could result in bettors turning to other options, even illegal ones.
"This tax hike will only penalize licensed, regulated companies who have delivered hundreds of millions in tax revenue to the state and the UNC System athletic departments,” said the Sports Betting Alliance, a group that represents top operators, in a previous statement to WRAL. “We urge state leaders to instead focus on strengthening the legal framework that protects players, supports jobs, and keeps illegal and unregulated operators out of North Carolina."
Under North Carolina's previous distribution formula, the first $8.4 million of taxes from sports betting operators was distributed to offset expenses ($500,000), gambling addiction treatment and education programs ($2 million), two statewide youth sports programs ($2 million) and the athletics departments at 13 UNC System schools ($3.9 million total; $300,000 each).
The remaining funds were distributed to the athletics departments at those same 13 UNC System schools (20% divided equally), the NC Major Events, Games and Attractions Fund (30%) and the state’s general fund (50%).
Under the new proposed distribution formula, the first $4.5 million would be distributed to offset costs ($500,000), gambling addiction treatment and education programs ($2 million) and two statewide youth sports programs ($2 million).
The remaining funds would be distributed as follows:
- 2.2% to NCAA Division I schools in the UNC System (up to $400,000 each)
- 19.5% to Division I and Division II schools in the UNC System (up to $2.9 million each).5.7% to Football Bowl Subdivision schools in the UNC System (up to $2.5 million each, to take effect July 1, 2027)
- 30% to the Major Events, Games and Attractions Fund (up to $30 million)
