North Carolina Budget Proposal Would Alter Tax Revenue Distribution

The North Carolina House of Representatives presented a new budget proposal this week. Lawmakers are looking to alter the current distribution of North Carolina sports betting tax revenue. Additionally, a new sportsbook license could be granted to the Carolina Cowboys of the Professional Bull Riders. North Carolina sportsbooks have only been live for three months and lawmakers are already looking to update the market.

North Carolina Sports Betting Tax Update

The proposed House budget would allow two more North Carolina collegiate programs to receive funding for their athletic departments. Those programs would be North Carolina State and the University of North Carolina at Chapel Hill. These programs were initially left out of the sports betting revenue distribution because they were larger schools with athletic budgets that exceeded $100 million.

Funds from sports betting in North Carolina are distributed to local colleges. Under the current system, 13 University of North Carolina institutions receive $300,000 each annually. The new system will expand to include the larger college athletic departments.

The new budget proposal also aims to add an additional $5 million annually to the Youth Outdoor Engagement Commission. This would supply more funding for local youth programs in North Carolina. Funding for the North Carolina Major Events, Games, and Attractions Fund would be reduced from 30% to 25% of tax revenue after initial distributions are paid.

The 5% left over will be distributed among Appalachian State University, East Carolina University, North Carolina A&T, and UNC-Charlotte alongside NC State and UNC. A primary motivator for the tax distribution adjustment is the early success of the North Carolina sports betting market.

“There’s so much more money coming in from sports betting than was originally forecast,” said Jason Saine, House Rep.

A New Sportsbook Could Be Incoming

Under North Carolina law, local sporting teams can apply for a betting license. The Carolina Cowboys are an official North Carolina sports team, and the proposed budget would allow them to claim a betting license. This means an operator would be able to partner with the Professional Bull Riders organization.

There are currently eight sports betting licenses active in Tar Heel State. It is notable that the Carolina Panthers of the NFL and the NC Courage of the National Women’s Soccer League have not partnered with any sportsbook operators.

The North Carolina market is already looking to shake things up. However, there is some opposition to the budget proposal in the Senate. The entirety of the House proposal is not going to pass in the Senate. However, with both chambers having a Republican supermajority, some concessions are likely, and the budget could be approved by following amendments.