The North Carolina online sports betting industry finally broke even in the month of September.
Despite promotional spending increasing significantly in September due to the onset of football season, gross wagering revenue (GWR) totals more than doubled from last month, sending the collective NC online sports betting industry into the black for the first time.
North Carolina online sportsbooks grossed $70,062,945 in September, the state’s second-highest total on record. Promo spending shot up to $37,030,390 in September, nearly tripling August’s totals. In all, the state did an excellent business in its first full month of football season.
Total handle jumps 55.3%
The total handle, including promo spending, was $575,398,078, a 55.3% increase from August. However, that figure can be misleading, given the increase in promo wagering revenue (PWR) as bettors took advantage of sign-up bonuses, bonus bets, and site credits. Bettors took home about $501.5 million in winnings, and operators took in $70 million in gross wagering revenue.
Month/Year | Paid Wagering Revenue | Promo Wagering Revenue | Total Wagering Revenue | Cancelled/ Void Wagers | Amount Paid as Winnings | Gross Wagering Revenue | Tax Yield (18%) |
---|---|---|---|---|---|---|---|
Mar-24 | $456,702,602 | $202,605,909 | $659,308,541 | $2,062,025 | $590,750,303 | $66,496,213 | $11,969,318 |
Apr-24 | $569,283,605 | $79,650,621 | $648,934,226 | $5,280,581 | $538,401,972 | $105,251,672 | $18,945,301 |
May-24 | $494,602,507 | $30,946,064 | $525,548,571 | $3,800,589 | $458,667,635 | $63,080,347 | $11,354,462 |
Jun-24 | $381,801,154 | $16,450,309 | $398,251,464 | $3,206,938 | $354,742,263 | $40,302,263 | $7,254,407 |
Jul-24 | $327,970,314 | $12,405,039 | $340,375,353 | $2,763,136 | $295,386,205 | $42,226,040 | $7,600,687 |
Aug-24 | $357,332,062 | $13,152,712 | $370,484,774 | $3,025,874 | $333,707,885 | $33,751,015 | $6,075,183 |
Sep-24 | $538,367,688 | $37,030,390 | $575,398,078 | $3,775,759 | $501,559,590 | $70,062,945 | $12,611,330 |
TOTALS | $3,126,059,932 | $392,241,044 | $3,518,301,007 | $23,914,902 | $3,073,215,853 | $421,170,495 | $75,810,688 |
Promo revenue rises
Promotional wagering revenue increased to $37 million, its highest level since the state’s second month of legal sports betting. Operators saw robust betting due to the tail end of the NCAA basketball tournament championships in early April.
In contrast, operators only earned about $13 million in promo revenue in August. September’s jump was an 181.5% increase.
Promo spending may stay robust through that fall as basketball mania is in the air again. The WNBA Finals are underway, with operators offering bonuses throughout the playoffs and DraftKings advertising heavily on TV during games. The NBA regular season kicks off on Oct. 22, and the college basketball season begins on Nov. 4.
NC Sees Tax Revenue Increase
With the increase in GWR, tax revenue also increased. The state collected $12.6 million in taxes. North Carolina imposes an 18% tax on sportsbooks’ gross wagering revenue. Promotional spending is not deducted from operators’ gross gaming revenue.
Since March, the state has collected $75.8 million in taxes from NC sportsbooks.
Industry breaks even after seven months
The North Carolina sports betting industry was just $4.1 million away from breaking even in August. With a strong showing in September, operators have finally made more from paying customers than they’ve spent on promos and bonuses. Specifically, they are now up $28,929,451.
Month/Year | Promo Wagering Revenue | Gross Wagering Revenue | GWR as % of PWR | Collective Market shortfall |
---|---|---|---|---|
Mar-24 | $202,605,909 | $66,496,213 | 32.80% | -$136,109,696 |
Apr-24 | $79,650,621 | $105,251,672 | 132% | -$110,508,645 |
May-24 | $30,946,064 | $63,080,347 | 203% | -$78,374,362 |
Jun-24 | $16,450,309 | $40,302,263 | 245% | -$54,522,408 |
Jul-24 | $12,405,039 | $42,226,040 | 340% | -$24,701,407 |
Aug-24 | $13,152,712 | $33,751,015 | 256% | -$4,103,104 |
Sep-24 | $37,030,390 | $70,062,945 | 189% | $28,929,451 |
On top of breaking even, the total paid wagering revenue since March, the sum of wagers made by players in North Carolina, hit $3.1 billion in September. That represents 81% of what the state originally projected the market would generate in its first full year. Without a doubt, North Carolina sports betting revenue will outdo state fiscal projections for the first full year of online sports betting.
What’s more, with the launch of pari-mutuel wagering on the horizon, bettors in North Carolina will eventually have even more options for wagering in the state.
Image Credit: Shutterstock