Sports Betting

North Carolina Online Sports Betting Handle Drops 19% In May

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North Carolina Online Sports Betting Handle Drops 19% In May

The North Carolina State Lottery Commission reported an online sports betting handle of $525.5 million in May 2024, a 19% decrease compared to April a few months ago.

North Carolina has generated $1.8 billion in betting revenue, $234.8 million in gross wagering revenue

A drop in promotional credits was a contributing factor. The Tar Heel State’s eight online sportsbooks provided $202.6 million in the first three weeks after the March 11 launch and another $79.7 million to attract new patrons in April.

North Carolina’s eight licensed sportsbooks are bet365, BetMGM, Caesars, DraftKings, ESPN BET, Fanatics, FanDuel, and Underdog.

In May, North Carolina operators produced $63.08 million in gross revenue, down 40% from April’s $105.25 million. The state’s 12% hold also marked the third consecutive month in double digits. It fell short of April’s 18.5% win rate.

The North Star State has now generated $1.8 billion in wagering revenue since March 11, including $1.5 billion if promo credits are excluded. Online sports wagering has cleared almost $1.6 billion in earnings. Operator revenue for the first three months is over $234.8 million as well.

Additionally, the state reported $3.8 million in canceled wagers for last month, bringing the three-month total to $11.1 million.

Tar Heel State taxes licensed sports betting operators at 18%

North Carolina taxes licensed operators at an 18% rate. The initial proposed tax rate was 14%, which was amended in the Senate. The 18% tax is placed on both retail and online sportsbooks. The North Carolina Department of Revenue is responsible for collecting tax revenues from each licensed operator.

According to the N.C. General Assembly via N.C. Gen. Stat. §105-113.128, tax proceeds from gross sports wagering revenue will be allocated to benefit the state. About $2 million annually will be donated to the Department of Health and Human Services for gambling addiction education and treatment programs.

Approximately $1 million will help fund North Carolina Amateur Sports to expand opportunities in youth sports. Plus, up to $300,000 annually is expected to be given to collegiate athletic departments at 13 state universities.

Moreover, about $1 million will be donated annually to the North Carolina Youth Outdoor Engagement Commission (NCYOEC) for grants of up to $5,000 per team or group, per county.

Funds for NCYOEC help cover the cost of travel to in-state or out-of-state sporting events. It also covers the cost of grants of up to $25,000 to attract amateur state, regional, area, and national sporting events, tournaments, and programs.