North Carolina, Ohio And Virginia Highlights Recent Sports Betting News
Here’s a look at all the recent sports betting news across the industry. North Carolina sportsbook license fees will be lower than Tennessee. Ohio lawmakers approved doubling the sports betting tax rate. Virginia sportsbooks have surpassed $1 billion in lifetime betting revenue. We will take a closer look at all these sports betting industry developments.
North Carolina Sports Betting Details Examined
Operators aiming to launch mobile sportsbooks in North Carolina will be charged a $1 million licensing fee. This fee will be renewable every five years.
The license fee rate places North Carolina well below the higher end of the industry. Neighboring Tennessee, for example, charges a licensing fee of $3 million to operators.
The North Carolina Lottery Commission (NCLC) will oversee the sports betting market and review licenses. The Tar Heel State is expected to be a major betting market, being home to multiple major collegiate and professional teams. That will surely make it an attractive market for some of the best sports betting sites.
Up to 12 mobile betting licenses will become available for operators. The state’s two federally recognized Native American tribes will also receive one online license each. This means North Carolina will host a maximum of 14 total mobile sportsbooks.
The $1 million licensing fee applies only for commercial operators, not for the tribes. They already have market access and operate retail sportsbooks in North Carolina.
Ohio Increases Sports Betting Tax Rate
The early success of the Ohio sports betting industry has led lawmakers to make tax changes. Lawmakers have taken a drastic step of doubling the tax rate from 10% to 20% on sports betting revenue. The new tax rate was received approval and comes just six months after the market launched.
This increase was a long time in the making. Gov. Mike DeWine pushed for it back in February, only a month after sportsbooks launched. Ohio has already become a top-five market in the U.S. in terms of monthly betting handle. The tax increase brings even more potential revenue to the state.
This is reflected in the state budget. For fiscal year 2024-2025, the 20% sports betting tax rate figured into the estimate. Ohio set its fiscal budget at $85.8 billion, the largest yet. Ohio’s strong start is an example of how sports betting can truly impact local economies.
Virginia’s Billion-Dollar Milestone
Speaking of local economies, Virginia has reaped the benefits of local sports betting, surpassing $1 billion in gross revenue. With the release of May’s revenue report the Old Dominion became just the sixth market to achieve said milestone. It took Virginia 29 months to see a billion dollars in revenue.
US Markets To Surpass $1 Billion In Sports Betting Revenue (Post PASPA)
- Illinois
- Indiana
- New Jersey
- Nevada
- New York
- Virginia
Virginia sportsbooks raked in $403,719,160 in bets for May 2023. This was a 14.9% increase in activity year over year from May 2022. This led to an 11.9% hold rate of $42,547,380 in betting revenue.
Virginia May 2023 Sports Betting Figures
| Mobile Operators | Casino Retail Activity | Total-May 2023 | |
|---|---|---|---|
| Gross sports gaming revenues | $399,962,895 | $3,756,265 | $403,719,160 |
| Gross winnings | ($352,539,331) | ($3,035,278) | ($355,574,610) |
| Allowable Bonuses and Promotions | ($1,781,519) | $0 | ($1,781,519) |
| Other deductions | ($3,791,863) | ($23,788) | ($3,815,651) |
| AGR (Adjusted Gross Revenue) | $41,850,182 | $697,198 | $42,547,380 |
With Virginia hitting this milestone and the market seeing a considerable increase in activity year over year, this shows how strong sports betting is in the Old Dominion.
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