The new era of online sports betting in North Carolina is off to a hot start.
The North Carolina State Lottery Commission reported a $659.3 million handle during the first three weeks of operation from March 11-31. That resulted in $66.4 million in gross gaming revenue for online operators and $12 million in funding for the state based on the 18 percent tax rate.
$202.6 million, or 30.7 percent of the total handle, was made in promotional wagers. The remaining portion came from traditional bets.
Hot out the gates
North Carolina launched its online sports betting market on March 11 just ahead of the ACC Men’s Basketball Tournament and a week and a half before March Madness.
While local regulators expected the expansion to the state’s previously retail-only gambling market to catalyze the industry, they still underestimated its impact.
“[Sports betting is] going to be a bigger revenue source than maybe even I imagined,” said state Rep. Jason Saine (R-Lincoln County), one of the main proponents of legalization.
North Carolina’s eight licensed operators ultimately paid $590.8 million in winnings to bettors. Those licensees include:
Local officials previously estimated that online sports betting would help produce $64 million in tax funding within one year. There are several months of what has historically been a slower time of year for the industry still to come, but the Tar Heel state already received close to 20 percent of its projected year-end total in the first three weeks of operation.
Although March Madness is now over, it is not fully accounted for in the commission’s latest report. The Final Four and National Championship Game occurred after the March 31 cutoff, and there’s a strong chance that North Carolina State University’s run to the penultimate stage of the tournament enticed many bettors to hit the books.
The real winners
Tax funding from sports betting will go to several key areas.
$2 million will be allocated to the North Carolina Department of Health and Human Services for gambling education, treatment, and rehabilitation.
$1 million will be awarded to local amateur sports organizations to help grow youth sports.
Another $1 million will go to the North Carolina Youth Outdoor Engagement Commission to help fund out-of-state sports trips and host in-state sports events, tournaments, and programs.
$300,000 will be allocated to athletic departments at 13 in-state colleges and universities.
The state commission and the Department of Revenue will also receive reimbursements for expenses related to upholding the new gambling laws.
The remaining funding will then be divvied up based on a percentage. 50 percent will go to the General Fund, 30 percent to the North Carolina Major Events, Games, and Attractions Fund, and an equal share of the final 20 percent will be awarded to athletic departments at the state’s 13 colleges and universities.
North Carolina regulators did not provide insights as to the individual performances of its operators, each of which agreed to partnerships with local professional sports organizations or venues before they received licensing.
A commission spokesperson said that there are no plans to report individual performances.