North Carolina legalized online sports gambling across the region on March 11, 2024, enabling residents to engage in online sports gambling without any restriction or hesitancy. It became the 38th state to do so. Two months down, the numbers are impressive, not just for operators but also for North Carolina in terms of state revenue.
According to the North Carolina State Lottery Commission, the gross wagering revenue was $66,496,213, fetching $11.9 million in state revenue at an 18% tax rate. Gross wagering revenue for the next month came to $105,251,672, bringing state revenue of approximately $18.9 million. Many analysts in the industry have called these surprising, adding that predictions were $60 million for the year and that could be achieved well within the timeframe.
Many believe that this is the start that no one expected since the segment is bringing in more money than anyone had thought about.
North Carolina was quick to share how the state uses market revenue. The state has allocated almost $2 million for gambling addiction education and treatment. Local youth sports teams and non-professional athletes have each received a million dollars. An additional $300,000 has been set aside for 13 state college athletic departments.
What remains is planned to be diverted to the general fund (50%), events, games, and attractions (30%), and UNC colleges (20%).
As college and professional football seasons approach, operators and the state expect a surge in revenue. The pace is strong and on the track to bank higher revenues and wagering revenue. However, there is a concern that could pull back the data. It pertains to gambling addictions.
North Carolina may have taken measures to improve the department, but concerns prevail across the state. The state raised these concerns during the approval of online sports gambling options, and then pledged to provide the necessary funds to address the service needs. It has been almost two months; it could take a while to get accurate numbers about how much North Carolina has done and where the problem of gambling addiction stands.
The numbers come at a time when New Jersey has reported an impressive number for April 2024. It generated almost $500 million in revenue from casinos, horse racing tracks, and offline affiliate organizations. While that is a 6.3% drop on a yearly basis, the numbers are promising for better times to come. One can click here for more gambling news. The section has covered the future of internet casino gambling in the US.
In summary, it involves gambling addiction and raises concerns about declining profits at physical venues, among other issues.
North Carolina is now looking forward to hosting the audience in May 2024 to see better numbers. A tax rate of 18% has the potential to generate decent margins and allocate them for productive purposes.
