It is safe to say that the North Carolina revenue report was highly anticipated, and the results were higher than expected. According to the North Carolina State Lottery Commission, the Tarheel State garnered $659 million in sports betting handle, which was more than what was projected by the commission in the first week of sports betting in the state.
Besides exceeding expectations for the state, the handle also ranked as the second highest among all US sports betting states, trailing only New York, which reached a handle of $1.85 billion. Nevertheless, North Carolina outpaced other states by a considerable margin despite having officially launched sports betting on March 11, giving it more than one week less than others to generate revenue.
Considering the situation from a different angle, only time will tell if the state will still maintain the same energy. This is because, as far as we know, this impressive result was also facilitated by the numerous bonus offers that were on the rise from different sports betting operators; hence, new markets are always likely to start strong.
Betting Revenue Amounts to $66.5 Million
According to figures given by the state, there was $66.5 million in gross income, with a 10.1% hold rate. Once the federal excise tax of 0.25% was subtracted, the adjusted total sports betting revenue came to $64.8 million.
Upon releasing the report, the commission did not break down the figures for individual operators; instead, it provided consolidated data. However, it is important to note that North Carolina hosts eight online sports betting operators:
- FanDuel Sportsbook
- DraftKings Sportsbook
- BetMGM Sportsbook
- Underdog Sportsbook
- Caesars Sportsbook
- Fanatics Sportsbook
- ESPN Bet
- bet365 Sportsbook
Offering $202.6 million in credits and prizes statewide, the eight mobile North Carolina sports betting providers ensured gamblers remained engaged throughout the tournament. Bettors received payouts totaling $590.75 million, while the recorded amount of canceled or voided wagers stood slightly above $2 million.
Promotional play constituted slightly over 30% of the total handle, significantly contributing to the betting activity.
Breakdown of North Carolina Tax Proceeds
The Tar Heel State received around $11.7 million in tax income by imposing an 18% tax rate on all eight operators’ gross sports wagering revenue.
The tax proceeds will be distributed to several bodies, including $1 million to each of North Carolina Amateur Sports and the North Carolina Youth Outdoor Engagement Commission, and $2 million will be given to the Department of Health and Human Services to aid programs for gambling addiction education and treatment.
Thirteen state institutions’ athletic departments will also get up to $300,000, and a systematic allocation plan will be in place after these initial payouts.
To guarantee continued funding for sports programs at the state’s colleges, athletic departments will get 20% of the residual earnings. 30% of the proceeds will support creating large-scale events and attractions that will boost tourism and economic growth through the North Carolina Major Events, Games, and Attractions Fund.
The state’s general fund will get the remaining 50%, giving it the flexibility to meet differing financial requirements and objectives across various industries.
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