North Carolina budget shows how much HBCUs could make from sports betting

North Carolina sports betting has entered a new phase and HBCUs now know where the ceiling is.

The state’s proposed 2026 budget would raise the tax rate on online sports wagering operators from 18 percent to 23 percent. If approved this week as expected, it would also rewrite how the money gets distributed.

The proposed budget keeps the original $300,000 annual payment for 13 UNC System athletic departments. That list includes North Carolina A&T, North Carolina Central, Elizabeth City State, Fayetteville State and Winston-Salem State. It also includes Appalachian State, East Carolina, UNC Asheville, Charlotte, Greensboro, Pembroke, Wilmington and Western Carolina.

So the first takeaway is important: the five public HBCUs do not appear to lose their base sports betting appropriation.

For smaller departments, $300,000 alone is huge. It can help with travel, athletic training, equipment, nutrition, scholarships, facilities and staffing. It can change what a coach or athletic director can plan from year to year.

North Carolina sports betting keeps an HBCU floor

When North Carolina legalized sports wagering, the original structure sent direct support to smaller public athletic departments. It was one of the overlooked pieces of the law.

The new budget language changes now as UNC and NC State have a path to the money through a tiered formula.

Beginning July 1, 2026, public universities with most teams in Division I can split Class I money. That pool is capped at $400,000 per school. Public universities with most teams in Division I or Division II can split Class II money. That class is capped at $2.9 million per school.

North Carolina A&T and North Carolina Central are Division I programs. Both will receive the $300,000 floor. They can also receive Class I and II money. Elizabeth City State, Fayetteville State and Winston-Salem State are Division II programs. They would keep the $300,000 floor and compete for Class II money.

HBCU schools gain protection, but UNC and NC State gain access

The bigger difference comes in 2027.

The budget creates a Class III category for public universities with football programs in the Football Bowl Subdivision. That class would receive 5.7 percent annually, with a cap of $2.5 million per school. That lane would fit UNC, NC State, Appalachian State, East Carolina and Charlotte. None of the five public HBCUs currently plays FBS football.

From there, the financial ceiling starts to separate.

UNC and NC State are entering a pool smaller schools have used since 2024. They also bring brands, budgets and football classifications that can unlock more money later.

That does not make the move bad policy by itself. College athletics is changing fast. Power Four schools are dealing with revenue sharing, scholarship expansion and rising operating costs.

But for HBCUs, the stakes are different.

At North Carolina A&T, NCCU, ECSU, Fayetteville State and WSSU, this revenue can stretch a budget in visible ways. It can help pay for student-athlete support and reduce pressure on fundraising. It can make a facilities project more realistic. Reducing travel strain can be a benefit as well.

Sports betting revenue becomes a North Carolina priority test

The question now is not whether UNC and NC State deserve a piece. The question is whether the new formula keeps its original mission.

The budget protects the $300,000 floor. It also creates a structure where larger programs may eventually reach higher payouts.

For HBCU athletics, that means the next phase is about tracking actual dollars.

A higher tax rate could make the pot large enough for everyone to benefit. A weaker revenue year could make the caps less meaningful. Either way, the state’s public HBCUs remain part of the sports betting conversation.

The focus may be on UNC and NC State fans. But the impact may be felt most by the schools still building with fewer resources.

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This story was originally published June 30, 2026 at 2:47 PM.