The sports betting revenue in North Carolina is going south. But it’s not time to push the panic button just yet.
The Tar Heel State is the latest to see a dip in sports betting revenue, reflecting a broader trend during the slow summer sports season.
The North Carolina State Lottery Commission revealed that the state’s online sports betting handle for June was just under $382 million—the lowest since the launch of online wagering earlier this year. North Carolina entered the online sports betting scene in March with an impressive handle that nearly reached $457 million, but the numbers have since slipped.
In May, the handle was slightly higher at $494.6 million across the state’s eight online sportsbooks. They include:
- Bet365
- BetMGM
- Caesars
- DraftKings
- ESPN Bet
- FanDuel
- Underdog
- Fanatics
May marked Underdog’s debut in the sports betting industry in North Carolina.
North Carolina sportsbooks reported just over $40 million in gross wagering revenue last month, a noticeable drop from $63 million in May.
Promotional Rates Down, Hold Up
Promotional credits in North Carolina also took a significant dive, plummeting by 47% from $30.9 million in May to $16.5 million in June.
Yet, the operators have little to grumble about with June’s impressive 10.1% hold rate. Even with reduced betting activity, North Carolina’s win rate remained comfortably above the industry average of 7%, consistently hitting double digits since the inception of sports betting.
This is excellent news for the state, which reaped a little more than $7 million in tax revenue in June, thanks to an 18% tax rate, with the funds earmarked for various community and educational initiatives.
Schools Still Benefiting from Sports Betting Revenue
The North Carolina Department of Health and Human Services receives $2 million annually to fight problem gambling through education and treatment programs. Additionally, $1 million per year is allocated to North Carolina Amateur Sports to foster new opportunities for youth.
Thirteen state universities, including UNC Greensboro, North Carolina State, and East Carolina, benefit from this revenue, each receiving up to $300,000 annually.
The North Carolina Youth Outdoor Engagement Commission also receives $1 million each year, promoting outdoor activities for the youth. The remaining funds are funneled into the state’s General Fund and Major Events, Games, and Attractions Fund, driving job creation and investment across North Carolina.
Football Season Expected To Drive The Numbers Back Up
As North Carolina navigates these fluctuations, it mirrors a trend across many regulated sports betting markets facing similar challenges.
The summer months, especially June and July, offer fewer betting opportunities. However, the return of college and professional football in August, including the NFL’s Carolina Panthers, is expected to boost the numbers significantly.
In addition to football, the approach of the baseball postseason will provide bettors with more exciting options to wager on, likely revitalizing the sports betting scene in the state.
Since its launch, North Carolina has amassed an impressive $2.2 billion in total handle and $275 million in gross gaming revenue (GGR), which makes the Tar Heel State a prime candidate to bounce back.
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