October Brings Lower Revenue for North Carolina Sportsbooks
A rather inauspicious start to the first month of pro football betting in the Tarheel State, where revenue of just $48.7 million failed to impress. Bettors on a hot streak drove hold numbers down to just 8%.
Bettors beat up sports books in North Carolina in October. © Elijah Mears, Unsplash
North Carolina Wagers Increase While Revenue Tumbles
With sports betting just getting underway a scant seven months ago, North Carolina’s sportsbooks are still fighting for every bettor. North Carolina gamblers used more than $23 million in promo in October, down from the whopping $202 million in promo that was awarded back in March to win over new customers.
However, it was the payouts, not promos, that impacted revenue this month. $560 million was paid out to gamblers on only $612 million in bets for a household of only 8%. That was the third-highest total handle so far, eclipsed only by March and April when sports betting first went live. If you back out the promo, the gross paid gaming wagers of $589 million were the highest so far.
But that won’t do you a bit of good if you can’t win a bet. And it wasn’t just in North Carolina; sports bettors across the country took advantage of NFL lines that seemed destined to be trounced. New York, which reports its online sports betting in more granular detail, said that in the third week of NFL contests in October, its sports books held only 2%.
While we experienced the most customer-friendly stretch of NFL sports outcomes we have ever seen early in the fourth quarter, which pressures revenue and Adjusted EBITDA3 in the short-term, the overall trajectory of our business is strong.” – Jason Robbins, CEO at DraftKings, Letter to Shareholders.
Even DraftKings CEO Jason Robbins felt compelled to mention the drubbing in his letter to shareholders covering the Third Quarter, though they certainly weren’t the only sportsbook feeling the heat.
It’s Not Only Downsides
The bright side is that due to the popularity of NFL betting, the Gross Wagering Revenue of $48.7 million still beat June, July, and August, which are typically slower months for sports betting revenue for North Carolina’s eight sportsbooks.
Currently, Caesars, BetMGM, BetRiver, Bet365, FanDuel, DraftKings, ESPN Bet, and Underdog Sportsbook are all legal and taking online bets in North Carolina. But you can also bet at any of the three Tribal casinos in Cherokee Casino Resort, Cherokee Valley River Casino, or Catawba Two Kings Casino. You must be 21 to make a bet.
While the numbers were not what many had hoped, it still meant $8.7 million in additional tax revenue, and one thing has remained a constant through up and down NFL betting seasons in the past, and that a slow start isn’t the whole season.
