Appalachian State University will build a $29M indoor athletic practice facility with funds from sports wagering tax revenue. The facility will benefit multiple athletic teams and non-athletic activities, and marks one of many projects supported by the tax revenue in North Carolina.
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Appalachian State University (ASU) in Boone, N.C., will use its allocation from a sports wagering tax to help pay for a $29 million on-campus indoor practice facility.
The University of North Carolina (UNC) Board of Governors on Nov. 13 approved ASU's funding proposal for the 85,000-sq.-ft. athletic facility, of which $3.3 million, or 11 percent, comes from the sports wagering allocation, the Winston-Salem Journal reported Nov. 19.
The new practice center will be adjacent to Kidd Brewer Stadium and will replace both the current Sofield Family indoor practice facility and the school's nearby softball field.
Demolition is expected to begin in January and construction on the new facility will take up to 18 months to complete, ASU officials told the Journal.
Although the primary goal is providing the ASU Mountaineers football team with a 100-yd.-long indoor practice field, the facility also will be used by other athletic teams and for non-athletic activities such as ROTC, camps and clinics.
According to the proposal submitted to the UNC Board of Governors, half of the funding, $14.5 million, comes from private fund-raising. The university said it has 100 percent commitment to that funding, including $2.5 million already in hand.
There also is $5.8 million projected from the school's athletic operating revenue, $2.9 million from lease revenue and $2.5 million from what was listed as institutional equity.
The Winston-Salem news source could not reach ASU Athletic Director Doug Gillin for comment on the new indoor practice facility.
Appalachian State's current indoor practice facility is nearing the end of its useful life, according to the school's presentation to the UNC board.
Additionally, ASU officials noted, "Inclement weather requires that App State's football team hold separate practices for its offensive and defensive units, and non-football groups are not able to use the facility during football practice."
Wagering Tax Revenues Going to Most UNC System Schools
Sports Betting Alliance spokesperson Pat Ryan said, "App State's planned practice facility is one of many positive projects that the industry's tax revenue will support in the coming years."
Within the controversial North Carolina House Bill 347, titled "Sports Wagering/Horse Racing Wagering," that was signed into law by Gov. Roy Cooper in June 2023, is an 18 percent tax on the eight licensed sport wagering operators' gross wagering revenue.
That tax money is to be divided between the athletics departments of all UNC schools, except for UNC-Chapel Hill and N.C. State, the Journal noted.
The bill does not outline how the schools are to use the money, save for using it to "support collegiate athletics departments."
As such, each department is projected to receive $1.33 million from tax proceeds generated from March 11 — when wagering began — through Sept. 30, according to the North Carolina Department of Revenue.
According to a legislative fiscal analysis report, "the consensus revenue forecast estimates a further $1.7 million will be allocated to each institution by the end of fiscal 2024-25."
Payments are made to the departments a month after the taxes are collected from the sports wagering operators.
"North Carolina policymakers chose to take on the prolific sports betting shadow market by allowing responsible, American-headquartered companies to meet consumer demand," Ryan said. "They're proud to play by the rules and pay a reasonable tax to responsibly serve North Carolina customers."
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