North Carolina Marks One Year of Legal Sports Betting

On March 11, 2024, North Carolina celebrated the one-year anniversary of its legal sports betting launch, a milestone that saw operators taking in a staggering $6.6 billion (€6.1 billion/£5.1 billion) in wagers. The North Carolina State Lottery Commission, which oversees the industry, released a report highlighting the year’s financial performance, detailing how the market evolved and shedding light on initiatives aimed at responsible gambling.

Key Figures from North Carolina’s First Year

In the first 12 months of legal sports betting, North Carolina operators reported $713 million in gross gaming revenue (GGR), with the state benefiting from $128 million in tax revenues. North Carolina’s sports betting tax rate is set at 18% of GGR, contributing a significant amount to state coffers. These numbers are in line with expectations and reflect the state’s strong sports culture, which includes major college basketball and football programs, professional sports teams, and NASCAR venues.

The state's population of 11 million people, coupled with the popularity of college sports and professional teams like the Carolina Panthers, Charlotte Hornets, and North Carolina FC, provided a solid foundation for the new industry. With a relatively large market and a mix of professional and collegiate sports, North Carolina's performance mirrors that of other states with similar demographics.

A Comparison with Other States

When comparing North Carolina’s first-year results to those of other states, it becomes clear that the state’s sports betting market is performing on par with others in its category. Ohio, with a population of 11.8 million and a broader professional sports landscape, launched its sports betting market in January 2023. The Ohio Casino Control Commission reported $7.4 billion in total bets and $911.4 million in GGR for the first year. Ohio's tax rate, which started at 10% but increased to 20% in July 2023, reflects the state’s larger professional sports scene and its slightly higher population.

Michigan, which launched its digital sports betting market in January 2021, reported a smaller handle of $3.7 billion and GGR of $208.9 million in its first year. Michigan, with a population of 10.1 million, has grown its sports betting market significantly, with the handle reaching $5.3 billion by 2024. While Michigan's tax rate of 8.4% is lower than North Carolina’s, the state’s figures show that the market has gradually expanded as it matured.

North Carolina’s sports betting performance, therefore, fits within the general trajectory of states that have legalized digital sports betting, balancing the expected initial enthusiasm with a focus on steady growth and revenue generation.

One of the core priorities during North Carolina’s legalization process was ensuring that sports betting would be conducted responsibly. The state’s lottery commission has directed a portion of the tax revenue—$2 million—toward the North Carolina Problem Gambling Program, which supports treatment, education, and a helpline for individuals affected by gambling addiction. The state also runs a voluntary self-exclusion program, allowing players to block themselves from accessing betting platforms if they feel the need to do so.

Eric Snider, chief regulatory officer of the North Carolina State Lottery Commission, expressed the state’s commitment to balancing revenue generation with player protection. “From the moment we began work, the goals stayed the same: to create a program that protects North Carolinians and raises revenue for our state responsibly,” he said in the anniversary report. The efforts to combat problem gambling have been an integral part of North Carolina's sports betting framework, setting a model for other states to consider.

In addition to these responsible gambling measures, a portion of the proceeds has also been allocated to supporting youth sports and universities across the state. This provides an additional layer of community benefits, demonstrating that the state’s focus is not just on financial growth but also on positive impacts for local programs and institutions.

The Market and Future Outlook

Currently, eight operators are live in North Carolina, including major players such as Bet365, BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics Sportsbook, FanDuel, and Underdog. North Carolina is unique in being the only state where Underdog operates its sports betting product. The state’s enabling legislation, which was approved in June 2023, allowed for a coordinated launch on March 11, 2024, following extensive development of regulatory rules and vetting of operators.

Looking ahead, North Carolina’s sports betting market seems well-positioned for growth. The state’s strong sports culture, coupled with a well-structured regulatory framework, suggests that the market will continue to mature in the coming years. As other states have shown, there is potential for increased revenue generation as the industry becomes more established and as operators continue to refine their offerings.

However, the importance of responsible gambling initiatives cannot be overstated, as North Carolina’s first year demonstrates that while sports betting can be a significant revenue generator, it must also be carefully regulated to ensure the safety and well-being of the players involved.

 

From the moment we began work, the goals stayed the same: to create a program that protects North Carolinians and raises revenue for our state responsibly.

Conclusion

As North Carolina celebrates the first anniversary of its sports betting market, the state stands at the crossroads of a promising future. With impressive revenue numbers and a commitment to responsible gambling, North Carolina has set a strong example for other states considering similar legalization efforts. While the market continues to grow, the state’s focus on protecting its citizens through proactive measures provides a valuable model for balancing the economic benefits of sports betting with the need for responsible oversight.