North Carolina Considering New Use for Sports Betting Tax Revenue

The Tar Heel state is considering a significant change in spending tax revenue from sports betting.

A bipartisan group of North Carolina lawmakers has introduced Senate Bill 657. The bill, named the Keeping our Coaches Act, proposes to take some of the tax revenue from sports betting to help pay public school coaches. It would dedicate $11 million of that revenue to help cover the salary of eligible coaches at public schools.

The pay gap between coaches in North and South Carolina prompted the bill. Many top coaches have begun to move south to increase their income. The Tar Heel State hopes the extra money will help make it easier for schools to keep their coaches, leading to a better sports landscape. 

Florida is facing a similar situation but has yet to find a solution. Lawmakers in North Carolina saw the damage it was doing to the state’s sports programs and realized they needed to find a solution fast.

Each qualified coach would receive a minimum of $3,000. 

Bill Comes as Economic Uncertainty Lies Ahead

SB 657 is a proposal that makes sense on paper, but it may run into hurdles in the state legislature. One reason for that is uncertainty around the US economy. The White House’s trade war has wreaked havoc on the stock market, leaving the country worried about a possible recession.

The sports betting industry could soon be hit by people looking to clamp down on their finances. This could have a massive impact on the industry and lead to startling drops in revenue. The states would suddenly find themselves without this massive new revenue stream, forcing them to make cuts.

North Carolina’s decision on this bill will give us a glimpse of how lawmakers view the industry's future. Fears of a revenue drop could make some hesitant to make this change. Using revenue to pay coaches would take some away from other areas and could backfire if the state is forced to rescind the trade due to economic pressures.