The kickoff of the 2025 college football season spurred a 29.2% jump in sports wagering to $478.7 million during August, the N.C. Lottery Commission reported Tuesday.
The August numbers is the first apples-to-apples comparison of betting interest in college football since sports wagering debuted in North Carolina on March 11, 2024.
By comparison, the monthly wagering record to date is the $685 million spent during March 2025 mostly for the NCAA men’s and women’s basketball tournaments.
The commission tracks sports wagering based on the state fiscal year of July 1 to June 30. It discloses the monthly report without comment.
Account holders bet $463.8 million during August, while there was $14.8 million listed as promotional revenue from the eight licensed sportsbooks designed to entice potential first-time wagers.
Meanwhile, bettors won $420.6 million. Gross wagering revenue to the sportsbooks was $54.1 million, while the estimated tax proceeds were $9.74 million.
Since the start of legalized mobile sports wagering, state residents have won just more than $8.84 billion through July 31.
Meanwhile, bettors have spent $9.73 billion on wagers.
“This hot start signals a powerful market that’s only going to heat up as autumn rolls on,” BetCarolina.com analyst Jim Tomlin said. “Few states in the country are seeing that kind of momentum right now.”
Industry analysts project that overall monthly betting totals are likely to ebb and flow with the annual sports calendar.
The next significant apples-to-apples comparison will come in September with the start of the National Football League regular season.
“If the Carolina Panthers can turn things around, state coffers could be seeing record-breaking returns,” Tomlin said.
Since the tipoff
Supporters of legal betting, particularly bipartisan legislative sponsors, envisioned the revenue generated serving as a modest supplement to the state’s General Fund to help offset recent annual reductions in the corporate and individual income taxes.
Legislative analysis of House Bill 347, which authorized sports wagering, projected about $40 million in 2024 annual tax revenue and more than $100 million annually by 2029.
However, the total to date has been $181 million, according to the N.C. Revenue Department. That includes $116.6 million for fiscal 2024-25 and $13.8 million so far in fiscal 2025-26.
The eight sportsbooks operating in N.C. are: Betfair Interactive; BetMGM; Crown NC Gaming; FBG Enterprises Opco; Hillside (North Carolina); Penn Sports Interactive doing business as ESPN Bet; Tribal Casino Gaming Enterprise, an enterprise of the Eastern Band of Cherokee Indians; and Underdog Sports Wagering.
BetCarolina.com analyst Steven Bittenbender said it’s realistic for North Carolina to experience between 10% and 15% annual growth in the short term, although a potential state and/or national economic downturn could leave bettors with less money to wager.
“Tax revenue skyrocketed to nearly $9.74 million in August, up an incredible 138.6% month-over-month,” Tomlin said.
“That’s real money flowing straight into North Carolina programs, proving just how powerful this industry can be.”
UNC System benefits
The more fans of the Tar Heels, Wolfpack, Mountaineers, Pirates, Rams, Aggies and Spartans bet on mobile sports wagering sites, the higher the potential allocation to their respective athletic departments.
The expectations were modest for the first 12-month period of at least a $300,000 commitment to all UNC System athletic departments outside UNC Chapel Hill and N.C. State.
Since the start of legalized mobile sports wagering in N.C., there has been $36.86 million in tax proceeds provided, or $2.83 million each.
That’s broken down to $821,206 in fiscal 2023-24, $2.01 million in fiscal 2024-25 and $336,634 so far in fiscal 2026-27.
North Carolinians’ embracing of legalized mobile sports wagering has led N.C. Senate and House Republican budget writers to raise projected potential revenue streams for UNC System athletic departments for at least the 2025-26 fiscal year.
The bills also would make UNC and N.C. State eligible for the first time for a limited portion of excess sports wagering tax revenue that could reach $24.5 million in fiscal 2025-26 and $31.5 million in fiscal 2026-27 for each athletic department.
For Appalachian State, the projected revenue is $5.3 million for fiscal 2025-26 and $6.3 million for fiscal 2026-27.
The 2025-26 state Senate budget bill would pay for the funding increase by doubling the tax rate — from 18% to 36% — on the gross wagering revenue for the sports wagering operations.
Gross wagering revenue is defined as what the operators received from sports wagers, less the amounts paid as winnings before any deductions for expenses, fees or taxes.
The higher tax rate would go into effect Oct. 1 if the budget bill becomes law.
However, House and Senate Republican budget negotiators are struggling to reach an overall compromise, which has resulted in a series of “mini-budget” bills clearing the legislature and being signed into law by Gov. Josh Stein.
Four of the state’s sportsbook operators — BetMGM, DraftKings, FanDuel and Fanatics — are members of Sports Betting Alliance that opposes state tax hikes on their gross wagering revenue, whether by legislators or governors.
rcraver@wsjournal.com
336-727-7376
@rcraverWSJ
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