In an energetic start to sports betting in North Carolina, bettors wagered an impressive $649 million in the first full month following the launch of digital wagering platforms. Operators went live on March 11, just ahead of the much-anticipated NCAA men’s and women’s basketball tournaments. The excitement surrounding March Madness, a period in which three North Carolina teams—Duke, NC State, and UNC—were all competing, significantly boosted the betting activity, with consumers laying down $659.3 million in bets over the span of three weeks in March.
The success story of sports betting in North Carolina comes with a few interesting financial nuances. In the following month of April, operators experienced a dip in the total handle, collecting $649 million compared to $659.3 million in March. However, their payout was $538.4 million in winnings, which was notably lower than the $590.8 million paid out in March. This variance indicates a higher hold for operators in April versus March, which proved financially beneficial for them.
Promotional betting—typical at the launch of sports betting markets—also saw a significant drop in April. Operators wrote off $79.7 million in promotional bets in April, a considerable decrease from the $202.6 million recorded in March. This trend aligns with historical data indicating that operators often offer their most competitive promotions at the launch of a new operation. The substantial fiscal activity reveals the effective strategies employed by digital operators to attract and maintain a robust betting environment initially.
Despite the thriving financial scene, the North Carolina lottery organization, which oversees sports betting activities, did not release specific tax revenue numbers. Digital operators are taxed at an 18 percent gross gaming revenue (GGR) rate by the state. The lottery’s transparency in revenue details does not extend to breaking down figures by operator or sport, thereby keeping some aspects of their operations under wraps.
The inception of sports betting in North Carolina included eight major platforms debuting simultaneously on March 11. Among these, Underdog Sports made its first appearance in the state’s market, and Bet365 expanded to its 10th state by going live in North Carolina. Other prominent sportsbooks, such as BetMGM, Caesars Sportsbook, ESPN Bet, DraftKings, Fanatics, and FanDuel, launched on the same day, creating a competitive environment from inception.
In a noteworthy operational detail, sports betting operators in North Carolina are mandated to be connected to professional sports venues or tribal casinos. The state has two tribal casinos, and among the live operators, Caesars is uniquely tethered to a tribe, specifically the Tribal Casino Gaming Enterprise Cherokee. This linkage requirement further defines the operating landscape for digital betting in the state.
As North Carolina’s sports betting ecosystem settles, state lawmakers are already contemplating refinements to the new legislation. There is ongoing consideration for a ban on college-player proposition bets, reflecting a cautious approach toward betting on amateur sports. Furthermore, Governor Roy Cooper has urged lawmakers to consider a provision allowing bettors to deduct their losses from their taxes, potentially easing the financial burden on the less fortunate wagerers.
Both legislative proposals remain under committee scrutiny. North Carolina’s legislative session began late on April 24, trailing significantly behind other states. The session is scheduled to conclude on July 31, giving lawmakers a narrow window to deliberate and possibly enact the proposed amendments.
As the vibrant sports betting sector in North Carolina continues to evolve, the state closely monitors its impact on local revenues and the broader economic dynamics. The initial data paints a picture of a thriving and competitive market, hinting at the potential for sustained growth and fiscal benefit. However, with ongoing legislative considerations and potential regulatory tweaks, the situation remains dynamic, demanding vigilant observation by all stakeholders.
In conclusion, North Carolina has embarked on a vigorous journey into the world of digital sports betting, marked by significant financial stakes and strategic legislative maneuvers. With its robust initial handle and competitive operator landscape, the state sets a promising stage for the future of sports betting within its borders.
