NC State, UNC sports betting move raises questions for North Carolina HBCUs

North Carolina sports betting is changing the money picture for UNC and NC State - and its public HBCUs may be impacted.

A proposed state budget change would raise the tax rate on online sportsbooks from 18 percent to 23 percent. It would also bring UNC and NC State into the revenue pool. Those schools were left out when legal wagering began in 2024. Now, they could receive millions from a source built to help smaller athletic departments.

That matters for five public HBCUs: North Carolina A&T, North Carolina Central, Elizabeth City State, Fayetteville State and Winston-Salem State. Each already receives sports betting tax revenue. For those schools, this is not bonus cash. It is operating money with real athletic value.

North Carolina sports betting has helped HBCU budgets

The original model sent money to 13 UNC System athletic departments. The list included all five public HBCUs, along with several regional universities. UNC and NC State were excluded because they had larger revenue streams.

Sports betting became a state-backed revenue stream aimed at schools that needed it most.

The results came quickly. WUNC reported that the 13 eligible universities received more than $1.66 million each after sports betting went live in March 2024. The UNC System estimated those departments would receive at least $2 million each the following year. (WUNC)

At North Carolina A&T, the money was tied to student-athlete support. Athletics director Earl Hilton said the school had invested in trainers, strength coaches, nutritionists and mental health experts. That is the kind of support major programs treat as standard. At many HBCUs, new revenue makes those gains possible.

At Winston-Salem State, the impact was direct. Former athletics director Etienne Thomas said the school used the money for upgrades to its basketball venue, locker rooms, tennis courts and fueling station.

WSSU also shows why the dollars matter. Its athletic budget was about $3.5 million. Two years later, its projected athletics budget is $7.5 million with over two million projected from sports betting. While WSSU's new director of athletics Eric Burns framed it as “budget relief,” multiple HBCU administrators have called it ‘game-changing."

Public HBCU athletics could gain, but questions remain

The new proposal could make the pot larger. WRAL reported the tax rate would rise to 23 percent. It also reported a new distribution model.

Under that proposal, Division I schools in the UNC System could receive a small extra share. That could help North Carolina A&T and North Carolina Central. Division I and Division II schools would also share a larger pool. That would include all five public HBCUs. (WRAL News)

The FBS schools would receive another layer of funding beginning July 1, 2027. None of North Carolina's public HBCUs currently plays FBS football. But UNC, NC State, Appalachian State, Charlotte and East Carolina could have access to a larger ceiling.

The new formula with UNC and NC State will be critical. HBCUs could gain if the higher tax rate creates enough new money. They could lose ground if the added schools dilute the pool.

The needs are not abstract. They include scholarships, travel, athletic training, recruiting, facilities and staffing. They also include keeping student fees from carrying too much of the athletic burden.

NC State, UNC’s gain could mean less for HBCUs

This is where the policy question becomes an HBCU question.

North Carolina can raise more money from sports betting and still protect the schools the original law was designed to help. It can also give UNC and NC State help with rising costs. The question is in the formula.

For UNC and NC State, sports betting money may help offset new pressure from revenue sharing and scholarships. For public HBCUs, it can help decide whether a team travels well, trains well and recruits well.

The headline may be UNC and NC State finally getting a cut. The HBCU story is whether North Carolina keeps investing in the schools that needed this money first.

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This story was originally published June 29, 2026 at 10:19 AM.