North Carolina lawmakers approved a budget that raises the tax on sports betting operators from 18% to 23% and allocates a portion of the revenue to the athletics departments of state universities. According to legislative analysts, the new rate is expected to generate US$ 206 million in revenue in fiscal year 2026-27.
Of the estimated total, US$ 126.1 million goes to the General Fund, an increase of US$ 50.7 million. Nine institutions in the UNC system, including Charlotte, Appalachian State and East Carolina, are to receive US$ 3 million each in the next fiscal year. UNC-Chapel Hill and NC State will receive the same amount, and as of 2027-28, FBS schools will have a cap of US$ 2.5 million per institution.
An athletic director told Athletic Business that without the gaming revenue, the department would have to "significantly cut expenses" or "increase student fees." Another US$ 21 million, generated by the previous 18% rate, was used to cover expenses that previously had no source of funding.
Investment in sports infrastructure
Appalachian State is investing in an indoor training center, while UNC Asheville is allocating funds to keep student fees stable. In the 1st ten months of fiscal year 2026, sports betting volume in North Carolina totaled US$ 5.6 billion, with US$ 110 million in taxes. Since the market launched in March 2024, more than US$ 299 million in taxes have been collected on US$ 1.6 billion in operator gross revenue.
Change in advertising rules
On August 10, 2026, Google eliminated the certification requirement for sports betting ads in its Authorized Buyers program, opening 37 markets, including Brazil, Argentina, Australia and the United Kingdom. The change is expected to raise operators' advertising costs.
