Given the sports doldrums of July, it is unsurprising that operators in North Carolina experienced the slowest month since launching earlier this year.
Handle for July came in at just shy of $328 million, surpassing June’s $381.8 million as the smallest take for the state since launching earlier this year.
While handle was down 14%, gross gaming revenue was actually up slightly, jumping from $40.3 million in June to $42.2 million in July.
Since launch, hold across the state’s eight sportsbooks has always been in the double digits. July’s hold was the second-lowest to date at 12.9%, besting last month’s 10.6%.
Since the North Carolina Lottery does not provide information on individual operator performance, so there is no way to tell how individual sportsbooks are performing.
Promotional spending hit a new low in July as well, with just $12.4 million in promotional credit. Back in March, operators extended $202.7 million in credit at launch, dropping to $79.7 million in April, $30.9 million in May, and then $16.9 million in June.
That number should start trending back up again this month and into September as operators for the first football season legalized sports betting will be available in the state.
Some operators could curb promo spend, even with football
As operators report Q2 results, many have mentioned that curbing marketing spend is top of mind. Both Penn and Rush Street hinted at decreasing promotional spend this football season, particularly in high-tax markets like Illinois and New York.
With a tax rate on GGR of 18%, North Carolina is not one of the states DraftKings has identified as a market where the company will begin implementing a surcharge on winning bets. The plan from DraftKings is to implement this in markets with tax rates over 20% beginning in 2025.
