December 2024 saw the lowest hold rate for North Carolina sports betting, since online betting was legalized in the state during March 2024. It is likely that a confirmed win rate of 5.8% is responsible for the low hold rate.
The hold rate dipping below 10% had a knock-on effect which impacted on the estimated tax revenues for sportsbook sector, which posted the month, posting the second lowest figure for the second part of the year.
The best way to illustrate how the low hold rate impacted sportsbook revenue is to compare figures for November and December and 2024, which you can see in the below table.
| Month | Total Wagering Revenue | Gross Wagering Revenue (Total Less Winnings) |
|---|---|---|
| November | $657.2 million | $78.0 million |
| December | $629.5 million | $35.7 million |
As you can see, while the total wagering revenue for December was only slightly lower than for November, the gross wagering revenue was less than half for December than for November. This is due to an exceptionally high win rate, which impacted the amount the sportsbooks were left with after paying out winnings totalling $590.9 million .
The lower the gross revenue achieved by NC sportsbooks, the less tax revenue is received by the state. The estimated tax revenue for November 2024 was $14.0 million, but only $6.4 million for December, a drop of more than 50%. This is the lowest recorded tax revenue figure for the Tar Heel State since North Carolina legal betting began in March 2024.
Looking back to July 2024, figures show that the total NC betting revenue reached close to $327.8 million. Despite this figure being considerably lower than the $629.5 for December, the low hold of 5.8% was by far the lowest seen in the Tar Heel State since North Carolina legal betting came into play earlier in the year.
Legal online betting in North Carolina has only been in place for a full nine months. Undeniably, the betting revenue has seen its ups and downs, but monthly figures recorded indicate a steady increase in uptake by bettors in the state.
While December 2024 may have proved disappointing for North Carolina sportsbooks, it has not caused a huge amount of concern either. Rather than the beginning of a pattern, it is more likely to represent a minor blip as the NC sports betting industry continues to establish itself.
