The launch of regulated sports betting in North Carolina on March 11 marked the beginning of a new era in the state’s gaming industry. The North Carolina State Lottery Commission has disclosed the betting figures for the inaugural phase, painting a picture of a robust market response. Over the span of just three weeks, up to the end of March, a massive $659.3 million was wagered by sports enthusiasts within the state.
Digging into the numbers, it becomes evident that bettors put down a considerable $456.7 million of their own money into betting pools. In addition, a hefty $202.6 million came from promotional offerings put forth by the various operators catering to the market.
From the total bets placed, players reaped winnings to the tune of $590.8 million. Not all wagers made it to the finish line, however, as $2.1 million worth of bets were nullified or withdrawn for various reasons. Consequently, the gross wagering revenue—before any taxes or other deductions—landed at a substantial $66.5 million. It is worth noting that the Commission’s reports did not delve into taxation records. Notwithstanding, under state law, interactive sports wagering operators face an 18% tax rate on their gross wagering revenue.
Such impressive numbers didn’t spring out of nowhere. They build upon the very promising first week of legal sports betting in the state, where over $198 million was gambled online. The momentum was discernible from the outset, with the opening day alone witnessing more than $24 million in wagers.
Currently, the North Carolina betting landscape is populated by eight licensed operators, all of whom are providing online betting services. Household names such as FanDuel, Caesars Entertainment, DraftKings, Fanatics, Bet365, BetMGM, ESPN Bet, and Underdog are carving out their territory in this new frontier.
The state’s regulations necessitate a local partnership strategy, requiring operators to collaborate with North Carolina-based sports teams, leagues, or venues. True to form, each licensee boasts such alliances. DraftKings, for instance, has entered the field alongside Nascar, whereas BetMGM aligns with the Charlotte Motor Speedway, and ESPN Bet has partnered with the PGA Tour and its Wells Fargo Championship.
Ties to local sports scenes also include Fanatics Betting and Gaming joining forces with the NHL’s Carolina Hurricanes. Similarly, Underdog has leveraged its position by extending its fantasy sports operator role through a partnership with McConnell Golf.
The response from operating licensees in these initial weeks was one of positivity and optimism. Kevin Hennessey, vice president of communications at Fanatics Sportsbook, praised the launch as “very smooth.” DraftKings, speaking through a spokesperson, mirrored this sentiment and highlighted the “great engagement” from the state’s bettors.
In summary, North Carolina’s venture into sports betting has taken off with significant momentum, reflected by the impressive amount wagered, the successful partnerships formed, and the positive feedback from the industry’s key players. As the state moves forward, the eyes of both fans and financial analysts will be keenly watching the unfolding potential of this new marketplace. This strong start not only signifies a windfall for the operators but also paves the way for major tax revenue for the state, earmarked for critical public services and infrastructural projects. With such a powerful opening act, the future of sports betting in North Carolina seems promising.
