The strong start North Carolina sports betting enjoyed in March carried over into April in a big way.
On Friday, the North Carolina State Lottery Commission reported bettors wagered $648.9 million in April, the first full month the eight licensed operators had in the state. That was down roughly 1.6% from the total handle the commission reported for March.
However, thanks to a significant drop in promotional wagers, the paid handle, or bets made using funds deposited by the account holder, actually increased by 24.7% to $569.3 million in April.
Bettors' use of North Carolina promos wagers dropped from $202.6 million in March to $79.8 million last month.
Operators and the state itself also enjoyed significant increases in revenue. Operators reported earning $105.3 million last month, a 58.2% increase from the $66.5 million they won in March.
North Carolina taxes sports betting operator revenues at 18%, so $18.9 million went to the state in April. Thatās an increase of nearly $7 million.
The state only releases total numbers. It does not break down its monthly report by operator.
North Carolina Sports Betting, April vs. March
| Total handle | Revenue (GWR) |
|---|---|---|
April | $648.934M | $105.252M |
March | $659.309M | $66.496M |
Change | Down 1.6% | Up 58.3% |
Why North Carolina Stands Out In April
This year is a bit of an anomaly for North Carolina sports betting, which is still in its nascent stages. Typically, total handles drop significantly from March to April. For example, Tennesseeās sports betting traffic dipped by 19.3%, Indianaās fell by 21.3% and Kansasā tumbled by 24%.
The drop-off is due to the fact that most of the wagering on the NCAA basketball tournament and the preceding conference tournaments takes place in March. Betting in North Carolina didnāt start until March 11.
In addition, having both the North Carolina State menās and womenās basketball teams making the Final Four also gave the April handle a boost. In future years, weāll likely to see North Carolina follow a similar pattern to other states.
Sports Betting Better Than Expected For North Carolina
When North Carolina lawmakers passed the sports betting bill last year, the fiscal note tied to the bill forecasted the state would receive about $65 million in tax revenue during the first year.
However, as BetCarolina noted earlier this year, the stateās projections were based on how sports betting operators worked in the early years of nationwide sports betting. In the last couple of years, operators have marketed their parlay products, especially same-game parlays, to their customers. Those wagers are harder to win because they require the bettor to be correct about multiple selections. In turn, that means operators are seeing their revenues increase.
Thatās been the case so far in North Carolina. Aprilās figures show the North Carolina sports betting apps had a combined win rate of 16.2%, and Marchās revealed a 10.1% rate. Traditionally, a win rate of 7% has been considered the industry standard.
As operatorsā revenues increase, so does the stateās as it collects an 18% tax off those winnings. For April, the state received $18.9 million in taxes. Thatās roughly 30% of the stateās original forecast, and when you combine both monthās tax collections, the state is nearly halfway to the $65 million mark. The tax figures are more in line with BetCarolinaās projections that the state could see more than $128 million instead.
As monthly handles will drop during the rest of the spring and summer, it stands to reason that revenue figures will as well. However, theyāre expected to start rebounding in September, when college and pro football get into full swing.
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