After a strong launch in March, North Carolina sports betting revenue has taken a big step back in May.
In May, North Carolina reported gross gaming revenue (GGR) of $63.1 million, marking the second full month of wagering in the Tarheel State. However, this figure fell 40% short of April’s total of $105.3 million. April was the first full month of betting in North Carolina after operators went live on March 11.
Despite launching only 11 days into the month, the May revenue was also 5.1% behind the $66.5 million generated in March. Notably, this three-week period included March Madness, during which all three North Carolina teams – UNC, NC State, and Duke – participated in the tournament.
Handle Also Down in May in North Carolina
North Carolina’s sports betting handle totaled $525.5 million in May, down 19% from April. The North Carolina Lottery Commission reported these figures after accounting for March Madness and April’s Final Four events.
The $525 million figure is the lowest amount bet in the first three months of legalized mobile sports betting in the state.
Promotional credits played a significant role in this decline. The state’s eight online sportsbooks distributed $202.6 million in the first three weeks following the March 11 launch and an additional $79.7 million in April to attract customers.
Excluding bonus bets, the month-over-month difference in wagered amounts for May was 13%.
Tax Revenue Figure is a Positive
North Carolina is benefiting from sports betting tax revenue, which is generated from the $63 million collected in gross wagering revenue. That figure is taxed at 18% in The Tar Heel State, meaning the state will receive more than $11 million in taxes.
Since March 11, they’ve collected over $42 million. Remember that these figures are estimates, as the lottery commission doesn’t account for taxes paid by operators directly. The North Carolina Department of Revenue handles those adjustments.
Other positive developments when it comes to sports betting in North Carolina include:
- Total wagers in North Carolina since March 11: $1.8 billion
- After subtracting promo credits: $1.5 billion
- Online wagering earnings: Nearly $1.6 billion
- Operator revenue (first three months): Over $234.8 million
So, despite numbers being down month over month, it’s still considered a strong start since the launch.
What’s Next For Sports Betting in North Carolina?
Lawmakers are discussing changes to the tax code, allowing bettors to deduct losses from taxable sports betting winnings. Under current law, sports bettors in North Carolina must pay state income taxes on their winnings but cannot deduct their losses to lessen the tax bill.
Rep. Marcia Morey introduced House Bill 967, which bans individual player props in college and amateur sports. The bill also prohibits retail betting at college sports event venues. If HB 976 becomes law, North Carolina will join Ohio and Maryland in banning college props wagering in 2024.
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