$6.6 billion in handle in first year

March 11 marked a significant milestone in North Carolina’s gaming landscape, as it commemorated one year since the state legalized sports betting. The North Carolina State Lottery Commission has unveiled comprehensive insights into the inaugural year of operations, highlighting key statistical milestones, regulatory developments, and initiatives focused on problem and responsible gambling.

The commission reported that during this twelve-month period, betting operators in North Carolina garnered an impressive total handle of $6.6 billion (€6.1 billion/£5.1 billion). This substantial figure demonstrates the state’s robust engagement with sports betting, underscoring its potential within the expanding U.S. gambling industry.

In terms of financial performance, operators achieved a gross gaming revenue (GGR) of $713 million, contributing $128 million in tax revenue to the state treasury. Notably, North Carolina’s taxation framework stipulates an 18% tax on GGR, a model that aligns with practices seen in comparable jurisdictions.

Comparative Analysis with Other States

North Carolina’s sports betting figures are indicative of its potential, especially when compared to similarly sized states. With a population of approximately 11 million, North Carolina is home to several major college football and basketball teams, three professional sports franchises, and numerous NASCAR venues, all of which enhance the attractiveness of its sports betting market.

In comparison, Ohio, with a population of 11.8 million, commenced sports betting operations on January 1, 2023. Reports from the Ohio Casino Control Commission indicate that Ohio’s digital betting operators reported a staggering handle of $7.4 billion and a GGR of $911.4 million within their first twelve months. Ohio’s tax structure saw an increment from 10% to 20% starting July 2023, reflecting the state’s proactive approach to generating additional revenue from this booming sector.

Similarly, Michigan, which legalized digital sports betting in January 2021, saw operators manage a handle of $3.7 billion and report a GGR of $208.9 million in its first year. Michigan’s success is attributed to its strong collegiate sports presence and four professional teams, coupled with a competitive tax rate of 8.4%. Interestingly, Michigan’s handle surged to $5.3 billion in 2024, demonstrating the potential for growth in the hourglass-shaped market.

Commitment to Problem and Responsible Gambling

North Carolina’s legislation prioritizes problem gambling and responsible gambling initiatives. The state mandates that $2 million be allocated annually to the North Carolina Problem Gambling Programme, a fund dedicated to supporting a gambling helpline, treatment services, and educational campaigns. Additionally, a voluntary self-exclusion program has been established, demonstrating North Carolina’s commitment to protecting its citizens in this new landscape.

In a strategic move to further support community engagement, some revenue is also earmarked for youth sports programs and academic institutions statewide. Eric Snider, the chief regulatory officer, emphasized the steadfast commitment to creating a responsible gaming environment: “From the outset, our objectives remained consistent: to develop a program that safeguards North Carolinians while generating revenue for our state in a responsible manner. The NC State Lottery Commission is dedicated to ensuring that licensed operators implement tools that facilitate responsible gambling practices among players.”

Current Landscape and Future Prospects

As of now, North Carolina boasts a competitive market with eight licensed operators, including leading brands such as Bet365, BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics Sportsbook, and FanDuel. Underdog Sportsbook uniquely operates in North Carolina, illustrating the diverse options available to bettors. Following the approval of enabling legislation in June 2023, the North Carolina Lottery Commission conducted thorough reviews and established regulatory frameworks to ensure a successful and compliant rollout ahead of the 11 March 2024 universal launch date.

With changing attitudes toward legalized gambling and an ever-growing acceptance of sports betting across the country, North Carolina is well-positioned to capitalize on this expansion. By continually focusing on responsible gambling and regulatory compliance, the state can foster a healthy and sustainable betting environment. As the sector evolves, North Carolina’s commitment to effective governance will undoubtedly influence the trajectory of its burgeoning sports betting market.