North Carolina and NC State, the largest and most popular athletic departments in the UNC System, would receive less money from sports betting taxes under the House’s proposed budget than under the budget passed by the Senate earlier this session.
North Carolina and NC State don’t currently receive any money from sports betting taxes, unlike the other 13 UNC System schools that participate in NCAA athletics.
Other WRAL Top Stories
Legal online sports betting in North Carolina launched in March 2024. The state has collected more than $143.7 million in taxes from the operators, who are taxed 18% on gross wagering revenue.
The House proposal, which hasn’t been fully released, would give the Tar Heels and Wolfpack athletic departments $26.3 million over the next two fiscal years – the same amount as Charlotte, ECU and Appalachian State, which, like NC State and UNC, play in college football’s highest subdivision.
But the Senate’s budget would place the Tar Heels and Wolfpack in a separate class and give them about five times as much money as their nearest in-state competitors. In the Senate’s budget, UNC and NC State would receive nearly $56 million over the next two years, while Charlotte, ECU and App State would receive $11.6 million over that time.
All the total are estimates since the funding is dependent on tax revenue from the eight legal sports betting operators. Bettors have gambled more than $7.8 billion in paid and promotional wagers since the launch in North Carolina, far outpacing projections.
The Senate proposed doubling the tax on operators from 18% to 36%. The House hasn’t released potential changes to the tax rate, but it hands out about $50 million less to the athletic departments over the next two years than the Senate budget does.
Both budgets used a tiered system for distributing revenue from the sports betting tax.
NCAA schools are set to begin sharing revenue directly with athletes this fall. Schools can share up to $20.5 million with athletes under terms of a court settlement between the NCAA, major conferences and the former players. However, a federal judge hasn’t yet given final approval of the settlement. Some schools have indicated they will go ahead with the payments even if the deal isn’t approved.
UNC and NC State will be at or very near the full revenue sharing amount.
The Senate budget added requirements for UNC and NC State to play men’s and women’s basketball games, including road games, against other UNC System schools before the 2039-40 season.
The House budget also calls for the UNC System's Board of Governors to raise tuition to generate an additional $30 million in fiscal year 2026-27.
The state also distributes sports betting tax revenue to the Department of Health and Human Services, North Carolina Amateur Sports, the North Carolina Youth Outdoor Engagement Commission, the Major Events, Games and Attractions Fund and the state’s general fund.
| House proposed | House proposed | Senate passed | Senate passed | |
| School | FY 2025-26 | FY 2026-27 | FY 2025-26 | FY 2026-27 |
| UNC-Chapel Hill | 12,100,000 | 14,200,000 | 24,400,000 | 31,500,000 |
| NC State | 12,100,000 | 14,200,000 | 24,400,000 | 31,500,000 |
| UNC-Charlotte | 12,100,000 | 14,200,000 | 5,300,000 | 6,300,000 |
| ECU | 12,100,000 | 14,200,000 | 5,300,000 | 6,300,000 |
| App State | 12,100,000 | 14,200,000 | 5,300,000 | 6,300,000 |
| UNC-Greensboro | 3,500,000 | 3,900,000 | 4,800,000 | 5,800,000 |
| UNC-Asheville | 3,500,000 | 3,900,000 | 4,800,000 | 5,800,000 |
| UNC-Wilmington | 3,500,000 | 3,900,000 | 4,800,000 | 5,800,000 |
| NC A&T | 3,500,000 | 3,900,000 | 4,800,000 | 5,800,000 |
| Western Carolina | 3,500,000 | 3,900,000 | 4,800,000 | 5,800,000 |
| North Carolina Central | 3,500,000 | 3,900,000 | 4,800,000 | 5,800,000 |
| UNC-Pembroke | 2,800,000 | 3,200,000 | 4,300,000 | 5,300,000 |
| Winston-Salem State | 2,800,000 | 3,200,000 | 4,300,000 | 5,300,000 |
| Elizabeth City State | 2,800,000 | 3,200,000 | 4,300,000 | 5,300,000 |
| Fayetteville State | 2,800,000 | 3,200,000 | 4,300,000 | 5,300,000 |
| Total | 92,700,000 | 107,200,000 | 110,700,000 | 137,900,000 |