North Carolina’s First Full Month of Legal Sports Betting Yields $105 Million in Revenue

In April 2024, North Carolina’s newly legalized sports betting industry generated over $105 million in gross revenue, the first full month since legalization on March 11. Bettors wagered $648 million, slightly down from the $659 million in March, but experienced worse outcomes, resulting in significant profits for the state’s eight licensed operators.

Tax Revenue and Promotional Bets

North Carolina will collect an 18% tax on the operators’ revenue, translating to $18.9 million for April. Since the launch of online sports betting, operators have amassed $171.7 million in gross revenue, yielding over $30 million in tax revenue for the state.

Promotional betting dropped from over $200 million in March to less than $80 million in April, as companies reduced promotions and bettors utilized their initial sign-up offers. This led to a rise in paid wagers, from $457 million in March to $570 million in April.

Key Figures and Insights

According to Bill Squadron, a sports management professor at Elon University, the state is on track to generate well over $100 million in tax revenue, with expectations for continued growth. Despite the high initial engagement, more data over at least a year will be needed to accurately assess the market’s trajectory.

Total bets from March 11-31: $659.3 million

Total bets from April 1-30: $648.9 million

Total won by bettors in March: $590.8 million

Total won by bettors in April: $538.4 million

Gross wagering revenue in April: $105.3 million

April tax revenue from sports betting: $18.9 million

Market Dynamics and Future Expectations

Sportsbooks have aggressively marketed through billboards and social media, offering “free money” promotions to attract new customers.

The initial engagement suggests that the novelty of legal sports betting remains strong. However, experts like UNC Charlotte economics professor Craig Depken note that a full year’s worth of data is necessary to properly analyze the market’s development.

North Carolina’s legalization of sports betting, signed into law by Governor Roy Cooper in June 2023, took off just before March Madness, capitalizing on the excitement surrounding the tournament.

With over $1 billion in legal mobile sports bets placed in less than two months, North Carolina has quickly established itself as a significant player in the sports betting landscape.