WILMINGTON — UNCW’s Athletic Department has already realized substantial funding from legalized sports betting, but the potential for more revenue now rests in the hands of the state legislature, which is grappling with budget disagreements.
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According to trade organization Sports Betting Alliance, 13 University of North Carolina schools, including UNCW, received $41.2 million in gambling tax revenue in the 18 months since sports betting was legalized in the state. Each of the schools receive an equal share of the revenue, amounting to $3.1 million for use by their athletic departments.
UNCW’s Athletic Department has strategically deployed the state’s new sports gambling tax revenue to address long-term facility goals. Per UNC System rules, gambling tax revenue must first be used to fill funding gaps in the athletic budget and to prevent potential hikes in student fees.
Port City Daily reached out to the UNCW Athletics Department to inquire about the specific allocation of sports gambling tax revenue funds, but did not receive an answer by press.
As first reported by Carolina Journal, on the facilities side, the revenue helped cover expenses for the recently completed $3.45-million renovation of Brooks Field, which included the installation of a new synthetic turf playing surface, modern dugouts, and new outfield walls for the 2025 season.
UNCW’s 10-year master plan also prioritizes several long-term multi-million-dollar projects that could utilize revenue streams like the gambling tax. The university is currently exploring the renovation of Trask Coliseum to transform the venue into a modern, multi-use arena complex similar to larger campuses. Trask Coliseum was last updated in 2011 with a $2-million renovation for chairback seating and the installation of a center-hung video board and LED courtside displays. Other long-term projects in the plan include improvements to campus tennis courts and additional soccer fields.
Since launching in March of 2024, North Carolina bettors have wagered a staggering $9.7 billion in bets, according to the North Carolina State Lottery Commission. As a result, the state has received nearly $180 million in total tax revenue. In the last two months, North Carolina has already seen over $825 million in wagers, contributing an estimated $14 million to state tax revenue. The betting volume is highly seasonal, with total money wagered increasing by 93% from its low point in July to the peak of the NFL and NBA seasons in November.
North Carolina taxes licensed sports betting operators at a flat 18% on their gross revenue. This money is split into two phases: First, a set amount is directed to programs for gambling addiction treatment and youth sports, $2 million for gambling addiction education and treatment, and $2 million for youth sports initiatives. After these fixed allocations, the remaining revenue is split:
- 50% goes to the state’s General Fund
- 30% for the state’s Major Events and Attractions Fund
- 20% distributed evenly among the 13 smaller UNC System universities to support athletic departments
Despite early financial success, the stability of the gambling revenue stream is now part of a legislative battle over the state’s biennial budget.
The North Carolina General Assembly is deadlocked, in part, because the Senate’s budget proposal includes a provision to double the current sports betting tax rate from 18% to 36%, a measure the House’s budget proposal rejected. The budget’s stall stems from multiple policy disagreements between the chambers including personal income tax cuts, varied proposals for teacher and state employee raises, and conflicting provisions for funding a children’s hospital.
The Sports Betting Alliance, representing major licensed operators like FanDuel and DraftKings, has been a vocal opponent of the Senate’s proposed tax hike.
The Sports Betting Alliance’s argument against doubling the tax rate is that it would be counterproductive to the state’s revenue goals. They contend a 36% rate would force licensed operators to worsen the betting odds — companies set the odds based on stats and on how much money is wagered. The alliance says an increased tax rate would severely reduce promotional bonuses and sign-up incentives companies offer. For example, popular betting service FanDuel currently offers a new user promotion giving bettors $300 in bonus bets if their first wager of $5 or more wins.
They also suggest the tax increase would make people bet illegally instead where they pay no taxes to the state. According to the American Gaming Association, the illegal gambling market is decreasing as more states legalize the practice, but still collectively cost states $1 billion in lost gaming tax revenue over the past year.
Additionally, the SBA stands in opposition because a higher tax rate on wagering revenue directly reduces the earnings of its member companies. Conversely, a higher rate could result in a larger payout for the state’s General Fund and for UNC System Schools. The Senate’s budget proposal estimates the tax increase would generate an additional $53.4 million for the state in fiscal year 2025-2026 and $79.8 million more in FY 2026-2027.
Compared to other states, the tax rate on sports betting winnings in North Carolina falls in the middle of the spectrum among states where it’s legal. The national range is wide, extending from a low of 6.75% in Iowa and Nevada to a high of 51% in New York for online wagers.
Also lawmakers want to include two schools in the UNC System currently not benefitting from sports betting: UNC-Chapel Hill or NC State. The current law directs a portion of the tax revenue to the athletic departments of 13 UNC System schools, but excludesUNC-Chapel Hill and NC State because they have larger athletic programs.
In addition to UNCW, other schools receiving gambling tax revenue include: Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, NC A&T State University, NC Central University, UNC Asheville, UNC Charlotte, UNC Greensboro, UNC Pembroke, Western Carolina University, and Winston-Salem State University.
The General Assembly entered a legislative break on June 26 after failing to pass the biennial budget before the end of June. Lawmakers will reconvene on Oct. 21 to further deliberate the biennial budget and address related measures, including the sports gambling tax.
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