North Carolina Sports Betting Hits Lowest Hold Rate Yet in August

North Carolina’s sports betting operators recorded their lowest hold rate since the state launched online wagering in March. According to data released by the North Carolina Education Lottery, the hold rate in August dropped to 9.1%, a significant decrease from previous months. The eight licensed operators in the state took in $370.5 million in bets, resulting in a gross wagering revenue of $33.75 million.

While the handle increased from $340.4 million in July, the hold rate fell from 12.4%, marking the first time the state saw a single-digit win rate. Despite this decline, operators still paid $6.1 million in taxes to the state, which imposes an 18% tax on digital sports betting revenue.

Decline in Hold Despite Increased Bets

The gross wagering revenue in North Carolina, defined as the total handle minus winnings, amounted to $33.75 million in August. This was a 20% decrease from the previous month despite the 8.8% increase in the total amount wagered. Sportsbooks attributed part of the decline to the rise in promotional play, which reached $13.6 million, up from $12.5 million in July. Additionally, voided or canceled bets rose to $3 million, up from July’s $260,000.

The figures reflect a shift in the betting landscape, as North Carolina’s operators navigated through a month packed with Major League Baseball, the summer Olympics, and early college football games. However, August became the third consecutive month with a handle below $400 million, following a promising start in the first three months after launch when handles exceeded $500 million.

Six-Month Performance: A Closer Look

Since the state’s sports betting platforms launched in March, North Carolina operators have handled nearly $3 billion in wagers. Comparatively, Michigan, a similarly populated state, saw $1.6 billion in bets during its first six months of operation. Michigan launched with 11 digital platforms and expanded to 13 within half a year, while North Carolina began with eight and has yet to add more.

With this month marking the start of football season, both professional and college operators in North Carolina are anticipating a rebound in numbers. The state’s NFL team, the Carolina Panthers, and several top-tier college football programs like UNC and Duke are expected to draw significant betting interest.

Looking Ahead: Football Season and Beyond

The beginning of the college football season and the return of the NFL are expected to provide a significant boost to North Carolina’s sports betting handle. The state’s betting platforms had a strong start in March and April, thanks to local college basketball teams, such as NC State and Duke, making it to the NCAA men’s basketball tournament. This trend is expected to continue through the fall, especially with football in full swing.

As operators adjust to the fluctuations in The Tar Heel State, industry experts predict a return to double-digit hold rates, particularly during high-demand periods like football season. The state’s tax revenue is also expected to rise as the number of bets increases, with more than $60 million already collected in the first six months.

Source:

“North Carolina operators in August record lowest hold since launch” by Jill R. Dorson, igamingbusiness.com, September 9, 2024.