Sports betting has been live in the Tar Heel State for several years now, but the blossoming industry is about to get a big boost.
For the first few years of operation, betting in North Carolina was limited to a number of in-person locations like casinos and race tracks, but that’s set to change later this month when the state opens up the industry to mobile wagering. The launch date is currently slated for March 11, although state officials could tinker with that time frame as they continue to hash out the last minute details. They won’t want to wait too long, though, with the men’s and women’s NCAA basketball tournaments beginning soon thereafter.
It’s one of the biggest events of the American sporting calendar, and it takes on an even greater meaning in North Carolina because of standout programs like UNC and Duke. Here’s a look at how the hot start the legal gambling industry receives from the tournament kicking off should impact the economy here in the Tar Heel State.
Carefully Planned Launch Date
Launch dates play a pivotal role in the profitability of the mobile gambling industry, with the initial months of operation drawing significant attention. During this period, the allure of novelty, coupled with an abundance of advertising, creates a ripe environment for fans to engage with platforms like DraftKings. Specifically, the utilization of the DraftKings North Carolina Promo Code not only attracts fans but also enhances their betting experience from the get-go. This strategic promotion offers a variety of incentives, such as risk-free bets and deposit matches, designed to attract a large customer base eager to capitalize on these opportunities. Such promotions are critical in driving early engagement and maximizing the potential for profit during the launch phase, making them an integral part of the platform’s success.
Pairing that rush with natural market highs like the March Madness tournaments creates a massive influx of excited bettors, and it even helps to drive out of state commerce as well: with sports fans flocking to locations like Greensboro—where the ACC women’s basketball tournament is held and where teams like UNC and Duke have an outside shot at hosting the first couple rounds of the women’s NCAA tournament—they’ll be able to, in many cases, make use of those first time betting promotions once again, even if they’ve already placed bets in another state.
The Carolina Hurricanes of the NHL are likely to create another betting rush, as they look to be one of the favorites to hoist the Stanley Cup this spring.
Looking at Legality
While the concept of black market bookies fielding illegal wagers might feel like something out of a Martin Scorsese mob movie, the practice of illegal bookmaking isn’t as outlandish as one might think. In fact, some states have explicitly drawn up their tax code for sports betting with the purpose of eliminating black market bets in mind.
The gambling industry brings in billions of dollars to the state economy each year, split between the winning bettors, bookies, and money that the state receives from tax payments. States like New York levy taxes at rates as steep as 51 percent, dramatically cutting into the amount of revenue that sportsbooks are able to take home. Other states, like Ohio, set the tax rate much lower. This past year, the Ohio state legislature looked into the prospect of raising gambling tax rates in order to squeeze more money from the industry, but governor Mike DeWine staunchly opposed the idea, saying that by making it harder for bookies and bettors alike to turn a profit, it would push them to the black market in order to make money out of the government’s line of sight.
It’s unconfirmed whether black market bets are a problem right now, but it’s certainly a concern that states are keeping in mind… and with North Carolina’s gaming tax rate at a relatively small 5.25 percent, they aren’t likely to have any trouble with criminal behavior.
Early Predictions for North Carolina
Right now, the state government is expecting to see as much as a $7 billion handle in bets placed during the first full year of operation, with around $65 million of that money boosting the state’s tax revenue.
Many industry experts think that that projection is too conservative, though, given that the state boasts the ninth-largest population in the entire country, and has more than a dozen college and professional teams for bettors to choose from.
That would far outpace the $2 billion betting handle brought in by New York in their first full year of operation, a testament to the power of lower taxes in encouraging spending.
North Carolina has a $30 billion budget this year, so an extra shot in the arm to the tune of $65 million would provide roughly a 2.5 percent uptick in the state economy from one industry alone.