How North Carolina’s Public Universities Are Utilizing $21 Million from Sports Betting Revenue

Many athletic directors at public universities in North Carolina have been tightening their budgets lately. They anticipated more financial troubles this year, with possible deficits and staff cuts looming over their departments. However, a surprise benefit arrived with the legalization of sports betting, which has generated millions in tax revenue for these institutions.

Sports betting launched in North Carolina back in March. Since then, over $5.4 billion has been wagered in the state, according to the North Carolina State Lottery Commission. This revenue is being shared by various state agencies, including university athletic departments, as betting companies are required to pay an 18% tax rate.

Athletic directors initially expected to see only a few hundred thousand dollars from this new funding, but they were pleasantly surprised to receive over $1.66 million each in just a few months. This boost has prevented cuts and helped departments maintain their operations.

For example, Western Carolina University’s Director of Athletics, Alex Gary, noted that the new funding spared his department from making significant cuts. He expressed gratitude for the support, saying without it, they would have faced tough decisions regarding expenses, potentially raising student fees or relying on university bailouts.

In total, twelve universities benefit from this funding, including Appalachian State, East Carolina, and UNC Wilmington, among others.

While the funds have provided relief, they also come with expectations. The UNC Board of Governors has instructed schools to use the money first to cover deficits and reduce reliance on student fees. This is crucial, especially considering student athletic fees range from around $770 to $900 annually.

Since sports betting went live, the thirteen universities collected about $21.6 million, and estimates for this upcoming year suggest they could collectively receive at least $26 million.

While these funds are a financial lifeline, the law has faced criticism regarding potential issues like problem gambling, especially among college students.

A number of schools are making plans on how to utilize these funds effectively. For instance, Appalachian State is using part of their earnings to fund a new indoor practice facility, estimated to cost at least $29 million. The old facility has limitations that hinder training during adverse weather conditions.

N.C. A&T State University plans to invest in student health services, including hiring additional trainers and mental health professionals. Similarly, UNC Asheville’s athletics department will use the funds to enhance support services for athletes while ensuring they don’t increase student fee rates, which is the largest source of their funds.

UNC Pembroke has been able to decrease the financial strain on its sports department, which was facing a $1.7 million deficit without this new revenue stream. This funding allows them to maintain and potentially improve the services they provide to athletes.

At Winston-Salem State University, athletic director Etienne Thomas emphasized the importance of upgrading facilities. With the support of sports betting funds, they aim to improve their basketball venue and other athletic facilities, which is critical for recruitment and overall competitiveness.

Across the board, these universities are optimistic that continued sports betting revenue can help them achieve greater financial stability and improve the overall student-athlete experience.