Mobile sports wagering in North Carolina nearly set a revenue record during November, benefiting from the overlap of the middle of the NFL and college football regular seasons with the start of college basketball.
The N.C. State Lottery Commission reported Monday that $657.7 million was wagered online, according to reports from the eight licensed sports wagering operators. The commission issued its report — as typical — without commentary.
The amount was just $1.6 million shy of the record $659.3 million spent during March Madness.
The record monthly total was from March 11 — when legal mobile wagering debuted in N.C. — through March 31 covering the NCAA men’s and women’s tournaments.
Industry analysts project that overall monthly betting totals should peak annually with the 12-team college football playoffs in December and January, the Super Bowl in February and March Madness.
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The November wagering was up 7.4% from $612 million in October.
The November breakdown was a record $638.6 million by participants, while $19 million was provided in operators’ promotional spending.
Operators initially offered enticements of up to $200 worth of free bets for as little as a first wager of $5. Those enticements have dropped substantially from $202.6 million for the period of March 11-31.
The report is based on activity submitted by Betfair Interactive; BetMGM; Crown NC Gaming; FBG Enterprises Opco; Hillside (North Carolina); Penn Sports Interactive doing business as ESPN Bet; Tribal Casino Gaming Enterprise, an enterprise of the Eastern Band of Cherokee Indians; and Underdog Sports Wagering.
Overall winnings
In terms of winnings, account holders gained $576.8 million during November, compared with $560.6 million in October and a peak of $590.7 million during March 11-31. The total so far is $4.21 billion.
BetCarolina.com analyst Chris Boan said that “this first football season with legal wagering is proving highly profitable for North Carolina.”
“It shows that, when managed effectively, government programs like education can see substantial benefits from the legalization of betting.”
The N.C. Revenue Department is responsible for collecting the tax proceeds from sports wagering revenue. The eight operators made a combined $78.1 million in gross wagering revenue in November, compared with $48.6 million in September.
Gross wagering revenue is defined as what the operators received from sports wagers, less the amounts paid as winnings before any deductions for expenses, fees or taxes.
State law places an 18% tax on the operators’ gross wagering revenue, which would be $14.1 million in November, compared with $8.7 million in October. The total so far is $99.6 million.
By comparison, legislative analysis of House Bill 347, which authorized sports wagering, projected about $40 million initially in annual tax revenue and more than $100 million by 2029.
Steve Bittenbender, an analyst with BetCarolina.com, said North Carolina could generate as much as $128 million in tax revenue over the first 12 months.
Bets are not allowed on youth sports but can be made on professional sports, college sports, electronic sports, certain amateur sports or any sports events approved by the commission.
UNC System athletics benefits
A financial sweetener to secure support for North Carolina’s sports wagering bill — dedicated annual funding for 13 UNC System members’ athletics department — is proving to be millions of dollars more lucrative than initially projected.
The 18% tax on the gross wagering revenue covers Appalachian State, N.C. A&T, UNC-Greensboro and Winston-Salem State University in the Triad and northwest N.C. All UNC System members but UNC Chapel Hill and N.C. State are eligible.
The expectations were modest for the first 12-month period that began with the March 11 debut of mobile sports wagering: at least a $300,000 commitment to each department.
Through September, a combined just under $16 million in tax proceeds has been provided to the 13 members, or $1.23 million each.
About $821,206 came from tax proceeds for fiscal 2023-24. The projection is for about $2.1 million per school for fiscal 2024-25.
Appalachian State University has proposed using its allocation to help pay for a $25 million on-campus indoor practice facility.
The UNC Board of Governors on Nov. 13 approved ASU’s funding proposal for the 85,000-square-foot facility, of which $3.3 million, or 13%, comes from its sports wagering allocation.
The new facility will be adjacent to Kidd Brewer Stadium and will replace the current Sofield Family indoor practice facility and the nearby softball field.
Demolition is expected to begin in January and the new center will take up to 18 months to complete.
rcraver@wsjournal.com
336-727-7376
@rcraverWSJ
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