Despite initial enthusiasm following the launch of mobile sports betting in NC in mid-March, wagering activities tapered off during a month typically devoid of major sporting events, including the close of the majority of the NBA playoffs.
North Carolina Sportsbooks Take Expected Step Back in June
Throughout June, North Carolinians collectively placed bets totaling nearly $400 million, marking a significant decrease from previous months since the legalization. This figure represents the lowest monthly total recorded since the state’s foray into mobile sports betting, underscoring the impact of seasonal lulls on gambling participation.
Despite the dip in overall betting volume, the state’s cumulative wagering since March 11 surpassed a substantial $2.2 billion, illustrating sustained public interest in sports betting opportunities.
The financial outcomes for June revealed that bettors in North Carolina won approximately $354.7 million from their wagers during the month. This payout rate highlights a significant portion of the total wagered amount being returned to bettors as winnings, a crucial aspect influencing the market’s attractiveness and consumer retention.
From a revenue perspective, the eight licensed operators responsible for facilitating sports betting activities in North Carolina generated over $40 million in gross gaming revenue for June alone.
This revenue, subject to an 18% tax rate mandated by the North Carolina State Lottery Commission, contributed to a cumulative tax collection exceeding $49.5 million for the fiscal year ending June 30. These tax revenues notably surpassed earlier projections, underscoring the financial viability of North Carolina sportsbooks as a revenue generator for the state.
How North Carolina Compares to Similarly Populated States
Comparatively, North Carolina’s performance in June contrasts with established markets such as Michigan and New Jersey, where sports betting has flourished with broader participation and diverse sports calendars. In Michigan, for instance, June 2024 saw bettors wagering approximately $354.8 million, similar to North Carolina but within a more established framework of gambling activity. Michigan’s total gross gaming revenue for June amounted to approximately $43.4 million, surpassing North Carolina despite the latter’s lower total wagered amount. This discrepancy highlights Michigan’s higher per capita spending and broader range of available sports betting options compared to the newer North Carolina market.
In contrast, New Jersey, a leading state in the realm of sports betting, reported robust figures for June 2024. Bettors in New Jersey placed bets totaling $838.9 million during the month, a testament to the state’s mature and diverse sports betting ecosystem.
With a significantly higher total wagered amount compared to both North Carolina and Michigan, New Jersey’s sports betting industry continues to thrive, supported by a rich calendar of sporting events and a well-established infrastructure catering to gambling enthusiasts.
Revenue-wise, New Jersey’s gross gaming revenue for June 2024 stood at approximately $78.8 million, reflecting a higher revenue generation capacity compared to both North Carolina and Michigan. This disparity underscores the pivotal role of market maturity, regulatory environment, and sports event calendars in influencing sports betting revenue trends across different states.
While North Carolina’s sports betting market showed promising signs of growth since its legalization, the observed decline in June 2024 highlights the market’s susceptibility to seasonal variations and the absence of key sporting events. Comparatively, Michigan and New Jersey exemplify more established and lucrative sports betting landscapes, driven by higher wager volumes, greater revenue generation, and robust regulatory frameworks.
As North Carolina navigates its evolving sports betting landscape, understanding and adapting to these dynamics will be crucial in shaping its future growth and revenue potential in the competitive gambling industry.
