One year of sports betting in North Carolina

Sports betting has had a tremendous impact in more ways than one in its first year in North Carolina, as the first anniversary was marked on Tuesday.

According to the North Carolina State Lottery Commission, account holders in the state have placed more than $6.6 billion in paid and promotional bets, while players have won more than $5.85 billion.

Bettors have to claim the income on their state taxes and pay income tax on the winnings without being able to deduct losses.

House Bill 14 would change that if it becomes law. Its sponsors describe it as a matter of tax fairness rather than a gambling bill. It seeks to correct what some lawmakers see as the unjust taxation of gross gambling winnings rather than net earnings.

Since sports betting’s launch, the gross wagering revenue made by the eight authorized sports betting operators totaled more than $713 million. After the 18% tax, the state is projected to receive more than $128 million in proceeds.

Use of the tax proceeds are as follows:

• $1 million annually to North Carolina Amateur Sports to expand opportunities in youth sports.
• Up to $300,000 annually to collegiate athletic departments at 13 state universities, including Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, NC Agricultural & Technical State University, NC Central University, University of North Carolina at Asheville, University of North Carolina at Charlotte, University of North Carolina at Greensboro, University of North Carolina at Pembroke, University of North Carolina at Wilmington, Western Carolina University, and Winston-Salem State University.
• $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.
• Certain reimbursements to the NC State Lottery Commission and the NC Department of Revenue for expenses incurred to implement and administer the new law.

Of any remaining proceeds:

• 20% will be distributed evenly among the 13 state universities to support collegiate athletic departments.
• 30% to a new North Carolina Major Events, Games, and Attractions Fund to foster job creation and investment in the state.
• 50% to the state’s General Fund.

Approximately $2 million goes to the NC Department of Health and Human Services (NCDHHS) to fund gambling addiction education and treatment programs.

NCDHHS shared figures and information regarding the state’s Problem Gambling Hotline with Carolina Journal in an email. There was a slight uptick in calls to the hotline from 2023 to 2024. There were 895 calls in 2023 compared to 1,288 in 2024.

However, online chats went up dramatically from 83 in 2023 to 247 in 2024, and texts more than doubled from 172 in 2023 to 449 in 2024.

NCDHHS has put safeguards in place for the prevention and treatment of gambling addiction related to sports betting.

They have partnered with East Carolina University (ECU) and Birches Health, a New Jersey mental health organization providing nationwide virtual gambling addiction treatment, to pilot the first of its kind metric-based treatment program to evaluate both the treatment system and the outcomes of those who engage with treatment.

Birches Health founder Elliott Rapaport shared the following information with CJ in an emailed statement.

• The majority of Birches Health gambling addiction patients in North Carolina are between ages 22 and44 
• There has been a relatively even split of male and female gambling addiction patients in North Carolina for Birches Health, with a slightly higher number of males.
• Sports Betting has been the most commonly seen preferred type of gambling among Birches Health patients in North Carolina.

Interactive operators are required to offer responsible gaming tools to their players. These include features such as deposit and spending limits and timeouts. The state also offers tools that allow people to take control of their wagering and get help when they need it.

NCDHHS also has a partnership with EPIC Risk Management, an NCAA-funded organization, to provide prevention education on college campuses to athletes and students about the risks associated with sports betting.

In addition, the NC State Lottery Commission also created a Voluntary Self-Exclusion Program. This responsible gaming measure gives players control over their own access to legal sports gambling. It allows people to exclude themselves from wagering for one year, three years, five years, or a lifetime. Someone in the Voluntary Self-Exclusion Program will be unable to place sports wagers on any device or at any licensed sportsbook in North Carolina while the self-imposed ban is in place.

“After one full year of regulated sports betting in the state, the North Carolina DHHS Problem Gambling Program and State Lottery Commission deserve credit for having approached it with proper care, dedicating concerted efforts toward Problem Gambling research, awareness campaigns, treatment access and funding for specialized support,” Rapaport told CJ. “As other states consider legalizing sports betting, we hope they look to North Carolina as having set a new strong standard.” 

People can call the North Carolina Problem Gambling Helpline at 877-718-5543 or go to morethanagame.nc.gov for more information on support for a gambling addiction.

The post One year of sports betting in North Carolina first appeared on Carolina Journal.