Second Full Month of Legal North Carolina Sports Betting Sees Huge Month-Over-Month Drop

The legal sports betting industry in North Carolina faced a setback on Friday, with even the top sports betting sites experiencing a slowdown in activity during the summer.

According to a report from the North Carolina State Lottery Commission, even the newest legal sports wagering jurisdictions are not exempt from the annual spring/summer sports betting slowdown. The report revealed that there were double-digit percentage declines in activity, revenues, and taxes paid by both North Carolina sports betting apps and the state’s retail locations in the overall sports betting scene.

The discussion about potential changes in America’s latest legal sports betting state, North Carolina, has been ongoing since its launch. There is serious consideration for a ban on college player props, with a final decision anticipated before the end of the current legislative session on July 31.

$525.5 million May handle

In May, North Carolina sports betting apps experienced their lowest performance since launching in the second week of March. The lack of March Madness activity had a noticeable impact on the state’s gambling industry, despite the availability of numerous North Carolina sportsbook promotions for residents. It’s important to note that this data is based on a limited time frame, and may not accurately reflect the overall success of the state’s legal sports betting scene.

In May, North Carolina sportsbooks saw a total of $525.5 million in bets, which was a 19% decrease from April’s $648.9 million and a 20.3% drop from the $659.3 million wagered in March during its first three weeks of operation.

North Carolina sports betting providers have processed $1.8 billion in bets in less than three months, with North Carolina sports betting apps accounting for $1.6 billion of the total amount wagered.

June is anticipated to experience a significant decrease in total betting activity, mirroring the trend seen across the country.

$63.1 million in gross gaming revenue

Similar to the trend in May, the gross wagering revenue for the recently established North Carolina sports betting industry hit an all-time low, with just $63.1 million reported in May. This marks a significant 40.1% decrease from the $105.25 million recorded in April, the first full month of legalization.

May’s revenue total represents a decrease of 5.1% from the revenue total of just under three weeks in March, which amounted to $66.5 million.

The top sportsbooks in North Carolina were able to maintain a streak of double-digit holds for three consecutive months. The hold rate in May was 12.3%, down from April’s 17% but higher than March’s 10.1%.

Tax revenue figures for May from the North Carolina State Lottery Commission were not disclosed. According to the North Carolina Department of Revenue, an estimated $42 million in tax revenue has been generated by the state’s sports wagering operators since their launch on March 11.

Promo betting revenue also down

The promotional wagering revenue saw a significant increase during the first month of legalization in March, reaching $202.6 million. However, the revenue has been steadily declining since then.

In April, promotional revenue reached $79.6 million as sports betting was introduced in the Tar Heel State, but in May, that number decreased by 61.2% to $30.9 million.

About the potential ban on college prop betting

The North Carolina legal sports betting industry may be relatively new, but changes are on the horizon for providers in the Tar Heel State, particularly in college prop betting markets. Rep. Marcia Morey’s introduction of House Bill 967 could mark a significant shift in the way North Carolina sports betting sites operate.

The Bill would bring North Carolina in line with a few other leading U.S. states that allow legal sports betting. Ohio and Maryland have already prohibited college prop betting markets, and Louisiana will follow suit on August 1.