North Carolina Sportsbook Bets Hit $629M in December

North Carolina's legal sports betting market maintained strong activity in December, with bettors placing over $629 million in wagers, marking the third-highest monthly total since the state's online sports betting launched. According to the North Carolina State Lottery Commission's revenue report released on January 17, consumers wagered $629.5 million, slightly down by 4% from November. However, the high betting volume did not result in a record-setting month for operator or tax revenue.

 

The Recent Developments

The December report reveals a significant dip in operator revenue and state tax contributions, largely attributed to sportsbooks' low win rate. With a 5.8% hold, it was the lowest since launch in March 2024. The 5.8% hold is only the third time operators have experienced a win rate under 10% in the state's history, indicating an unusually high payout to bettors.

Out of the $629.5 million in bets, bettors won back $590.9 million, leaving operators with a gross gaming revenue (GGR) of $35.7 million. This GGR figure marks the second-lowest in North Carolina's sports betting history. In addition, sportsbooks recorded a significant $16.4 million in promotional credits, further reducing their revenue.

The state's tax revenue from sportsbooks totaled $6.4 million in December, the second-lowest figure since the market's launch. North Carolina taxes sportsbooks at 18% of their GGR, and this month's tax intake was notably lower than November's $13.5 million. For context, December's tax revenue was far below the previous months with higher holds: $6.5 million in taxes were recorded in August and June 2024, when bettors placed $367.5 million and $395 million in wagers, respectively. Those months had higher hold percentages of 9.2% and 10.2%.

 

The 5.8% hold in December was the lowest since North Carolina's online sports betting launched, marking only the third time operators recorded a win rate under 10%, which reflects unusually high payouts to bettors

 

Conclusion

Despite the month's strong betting activity, operators' lower win rate, driven by high payouts, resulted in a significant decline in both operator and tax revenues compared to November. North Carolina currently has eight active online sports betting platforms, and the figures in the report reflect only online wagering, as retail betting at tribal casinos is not taxed by the state.

As the state's sports betting market continues to mature, the January report suggests the ongoing fluctuations in win rates could impact revenue, with operators closely monitoring performance ahead of the new year.