North Carolina Sports Betting Suffers 19% Handle Drop In May

The North Carolina online sports betting market recorded a total handle of $525.5 million in May, down from the $649.2 million reported in April. This represents a substantial 19% decrease in the overall amount wagered by bettors in the state. Industry experts suggest that the drop-off can be primarily attributed to the conclusion of the NCAA basketball tournaments, which had previously fuelled a surge in betting activity.

One significant factor contributing to the decline in the May betting handle was the decrease in promotional credits offered by the state’s eight licensed online sportsbooks. In the first three weeks after the March 11 launch, these sportsbooks handed out a staggering $202.6 million in promotional credits to attract new customers. This figure dropped to $79.7 million in April, and it likely played a role in the 13% month-over-month decrease in the actual amount wagered, even when excluding the impact of these bonus bets.

Despite the drop in the overall betting handle, North Carolina’s online sportsbooks continued to maintain a strong hold rate against bettors. The gross revenue generated by the operators reached $63.08 million in May, representing a 12% hold rate. This marked the third consecutive month in which the hold rate remained in the double digits, though it was down from the impressive 18.5% win rate recorded in April.

The decline in the betting handle and operator revenue did not significantly impact the tax revenue generated for the state. With an 18% tax rate on sports betting, North Carolina has collected an estimated $42 million in taxes since the market’s launch on March 11, including $11 million from May’s activities. This steady stream of tax revenue is a testament to the state’s successful implementation of its online sports betting framework.