North Carolina Sports Betting Revenue Drops in June Amid Slow Sports Season

North Carolina s the list of states experiencing declining sports betting revenue due to a sluggish professional and amateur sports calendar. According to the North Carolina State Lottery Commission, the state reported an online sports betting handle of $381.8 million in June, the lowest since wagering was launched earlier this year.

Key Figures and Operators

The state went live with online sports betting in March, posting a $456.7 million handle for that month. The handle increased to $494.6 million in May, reflecting the initial excitement and heavy promotional activity. The operators in the state include bet365, FanDuel, Underdog, and Fanatics. Notably, North Carolina marks Underdog’s first entry into the betting market.

June’s gross wagering revenue for North Carolina sportsbooks was $40.3 million, down from $63 million in May. The state’s active gaming law imposes an 18% tax rate on gross wagering revenue from all state-licensed online sportsbooks. These proceeds are allocated towards education, problem gambling initiatives, youth engagement, and other community-focused programs.

Tax Revenue and Allocation

North Carolina’s Department of Health and Human Services receives $2 million annually to address problem gambling through educational resources and treatment programs. Additionally, $1 million is distributed yearly to North Carolina Amateur Sports to create new opportunities. Thirteen state universities, including Appalachian State, East Carolina, and Winston-Salem State, receive up to $300,000 annually from the gross wagering revenue.

Other allocations include $1 million annually to the North Carolina Youth Outdoor Engagement Commission, with the remaining proceeds going to the state’s General Fund and the Major Events, Games, and Attractions Fund, which aims to create jobs and investments.

Promotional Revenue and Future Prospects

Since its launch in March, North Carolinians have wagered $1.9 billion, generating $275.1 million in gross wagering revenue. The state’s betting operators have paid out $1.94 billion to players during this period. Promotional revenue has reached $329.6 million, with a monthly low of $16.4 million recorded in June.

Comparative Trends and Market Performance

According to a report by the North Carolina State Lottery Commission, June’s $398 million mobile betting handle marked a significant dip in North Carolina’s fourth month of operation. This decline is part of a broader seasonal trend observed across the U.S., with states like New York also experiencing a drop in betting volume.

The gross gaming revenue (GGR) for June was $40.3 million, with operators maintaining a 10% hold, down from 12% in May. Players in North Carolina won a total of $354.7 million in June. Since the launch, the state has accumulated $2.2 billion in handle and $275 million in GGR.

Market Insights and Operator Performance

North Carolina’s sports betting market saw its best month in March, driven by the sports betting launch and the NCAA men’s basketball tournament, which featured strong performances from NC State, Duke, and North Carolina. Flutter CEO Peter Jackson highlighted North Carolina as one of the firm’s most successful state launches during the Q1 earnings presentation in May, with significant promotional efforts contributing to this success.

Currently, Bet365, BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics, and FanDuel are active in the market, with operators required to partner with a professional sports team, NASCAR, or the PGA Tour.

Despite the recent decline, North Carolina’s sports betting market shows promise. The state legislature’s initial revenue projections for the first year appear achievable, indicating potential for growth and sustained contributions to community programs and state funds.

Source: NORTH CAROLINA | Sports Betting Revenue Report* | FY 2024 [pdf]