North Carolina’s sports betting dips in July amid seasonal slump

Stakeholders are hopeful that revenue will tick up with the start of football season

The state of North Carolina legalized online sports betting just in time for March of this past year. When you consider the local college basketball programs, it’s no surprise that the state hit the ground running when it came to producing huge numbers in terms of sports betting handle and revenue. Duke, NC State and North Carolina all made it to at least the Sweet 16 of the men’s NCAA Tournament. 

However, the state is currently learning what every other state has learned at some point. The summer months are a struggle, especially July. No football, no basketball, no hockey and a week-long MLB All-Star break gives bettors a built-in pause in the schedule. If there’s not much sports action happening, the state can’t generate as much revenue from sports betting.

North Carolina reported its numbers for July, and it revealed the worst month in the short history of legalized online betting in The Tarheel State. It continued a trend of four straight months of declining handle, as the state went from accepting $395 million worth of bets in June down to just $340.4 million in July. 

High hold leading to sizable tax earnings for North Carolina

While the betting handle continues to dip as the summer goes on, North Carolina has been saved by its high hold rate. July saw the state post a 12.4% hold, which is in line with its 12.3% overall hold since launching in March. This is much higher than the national average, which is nearly 7%. In other words, North Carolina bettors lose bets at a higher rate than the national average, allowing sportsbook operators to keep a higher percentage of dollars wagered. 

The state announced $42.2 million in gross sports betting revenue for the month of July, which marks the fifth straight month the state has eclipsed $40 million in revenue. North Carolina has had a double-digit hold in all five months, with the two numbers obviously being extremely correlated. 

The state saw $7.6 million enter its tax coffers this month, which marks five straight months of the state earning at least $7 million in tax revenue. The state taxes sports betting revenue at an 18% tax rate. As a result, North Carolina has earned $57.1 million in tax revenue since its March launch. 

The state has high hopes for football season

North Carolina launched its online sports betting market in March of 2024, meaning the state and its residents are yet to experience a football betting season. Based on the success the state has seen in the five months since launching, there’s real optimism that North Carolina’s online betting market can surpass the mark they set in April, where the state’s operators generated over $100 million in gross revenue. 

July was a particularly slow month, as the state didn’t even see much of a bump from the Summer Olympics, which didn’t start until the end of the month. Wimbledon, EURO and Copa America were the main events that took place alongside MLB baseball, and none of those events come close to moving the needle the way football does for sportsbook operators.