After six months, the North Carolina sports betting industry is close to breaking even.
August’s collective market shortfall of just $4.1 million was by far the closest sportsbooks in North Carolina have come to profitability since sports betting began in March. The shortfall that month was $136.1 million.
Gross wagering revenue dropped in August to $33.8 million as promotional spending increased slightly from July. The total handle in August was $370.5 million, a nearly 9% increase from $340.4 million in July.
- Related: See the full picture of North Carolina sports betting revenue
Tax revenue drops to $6M in August
Gross wagering revenue (GWR) for the eight licensed North Carolina sports betting operators totaled $33.8 million in August on a 9.1% hold. It was a 20% drop from July’s $42.2 million on a 12.4% hold. August’s hold percentage was the lowest since NC sports betting launched but is still a solid return for the sportsbooks.
Tax revenue dropped to about $6 million in August, the lowest amount since March. There was also an increase in canceled and voided wagers ($3 million) compared to nearly $2.76 million in July.
North Carolina Sports Betting Revenue Totals
| 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 |
| TOTALS | $2,587,692,244 | $355,210,654 | $2,942,902,929 | $20,139,143 | $2,571,656,263 | $351,107,550 | $63,199,358 |
The North Carolina Lottery Commission does not break down handle for each of the state’s eight online sportsbooks. FanDuel, however, reported in its second-quarter earnings report that it controlled 59% of the North Carolina online sports betting market.
Promotional spending will rise with football
Promotional wagering revenue (PWR) consists of operator enticements like sign-up bonuses, bonus bets, and site credits. GWR is what sportsbooks make after paying winnings but before deducting taxes and fees. Comparing PWR and GWR reveals how close the industry is to profitability.
Collective Market Shortfall in North Carolina by Month
| Month/Year | Promo Wagering Revenue | Gross Wagering Revenue | GWR as % of PWR | Collective Market shortfall |
|---|---|---|---|---|
| March 2024 | $202,605,909 | $66,496,213 | 32.80% | $136,109,696 |
| April 2024 | $79,650,621 | $105,251,672 | 132% | $110,508,645 |
| May 2024 | $30,946,064 | $63,080,347 | 203% | $78,374,362 |
| June 2024 | $16,450,309 | $40,302,263 | 245% | $54,522,408 |
| July 2024 | $12,405,039 | $42,226,040 | 340% | $24,701,407 |
| August 2023 | $13,152,712 | $33,751,015 | 256% | $4,103,104 |
| $355,210,654 | $351,107,550 | 98.80% |
NC operators spent heavily in March to entice customers during the launch of online sports betting and in the midst of March Madness. Promo spending dropped in the following months but increased slightly in July during the Summer Olympics.
Promotional spending is expected to pick up heavily this fall with college and pro football. It’s the first time North Carolina residents can legally place online wagers on football.
With the increase in promo spending, the march to profitability will probably suffer a setback throughout autumn and early winter as football season plays out.
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