NC State and UNC could receive nearly $6 million annually if a proposed change to the North Carolina revenue distribution model goes through.
The state’s two largest public school athletic departments have been left out of distributions from taxes on sports betting operators since it was legalized in North Carolina in 2023 (officially launching in early 2024). Instead, as per a formula set by state law, the money has flowed to the 13 other UNC System schools.
However, a proposal that’s expected to be included in the state budget “would include the Triangle rivals in a revamped distribution mode,” according to Raleigh-based WRAL-NBC.
Under the proposal, NC State and UNC, along with other FBS schools Appalachian State, Charlotte and East Carolina, could receive up to $5.8 million annually beginning July 1, 2027.
Originally, NC State and UNC were left out of the distribution formula, likely because lawmakers wanted to direct the funding toward smaller UNC System athletic departments that generate less revenue.
Another change expected to be in the budget is an increase on tax rates for sports betting operators. According to WRAL-NBC, the tax rate “will climb to 23% under the forthcoming budget” after it was previously 18%.
North Carolina launched online sports betting in March 2024 and operators have paid more than $300 million in taxes on gross wagering revenue at an 18% rate, according to WRAL-NBC.
In the 2024-25 fiscal year, UNC’s athletic department generated $172.96 million in revenue, but operated at a deficit with $187.96 million in expenses. The NC State athletic department generated $135.83 million in the most recent cycle and had $129.01 million in expenses.
The proposed change would provide a significant new revenue stream for the schools as athletic departments navigate the financial demands of the NCAA’s new revenue-sharing model.
