Buoyed in part by the launch of North Carolina sports betting, sportsbooks in legal US markets accepted nearly $150 billion in wagers last year. That reset the record for annual handle, according to data released Wednesday by the American Gaming Association.
The record annual handle of more than $146 billion (with 2024 data from Arizona still incomplete) was up 22.2% from the 2023 tally of $119.8 billion. North Carolina, where online sports betting commenced last March, accounted for more than $5.4 billion of last year’s total.
“In 2024, Americans embraced the diverse legal gaming options available to them — whether in casinos, at sportsbooks, or online — leading to another record-setting year for our industry,” AGA President and CEO Bill Miller said in a statement.
The Tar Heel State launched NC sportsbook apps March 11, 2024, and was one of two to join the legal market last year, along with Vermont. Currently, 38 states and the District of Columbia allow sports betting in some fashion. Missouri is set to join that group later this year.
Sports Betting Revenues Also Reach Record Heights In 2024
Not surprisingly, the sportsbooks also reported record revenues in 2024. The $13.1 billion licensed operators won last year was up more than 25% from the $11 billion they collected in 2023. Football season was especially profitable as operators earned $3.6 billion of their revenues in the fourth quarter. That, too, set a record, beating the fourth quarter of 2023’s revenue tally by 7.3%.
While sportsbooks reaped higher revenues, that does not mean bettors always took it on the chin. Nationwide, sports betting operators reported a hold rate of 9.3%, slightly higher than the 9.1% they collected in 2023. However, several operators, including FanDuel, warned investors that bettors won more than expected in December, thanks to a high number of favorites winning college football playoff and NFL regular-season games. That operator offers the FanDuel North Carolina Sportsbook and products in many other states.
The eight licensed sports betting apps in North Carolina won $583.6 million in 2024, which equals a hold rate of 10.8%. In December, though, the operators earned just $35.7 million off a handle of $624.6. That 5.7% hold rate was by far the lowest of any month.
Traditionally, sportsbooks reported hold rates between 5% and 7%. That has changed in the years since the 2018 U.S. Supreme Court ruling that gave North Carolina and other states the opportunity to legalize sports betting, because operators such as DraftKings are promoting parlay wagers that offer more lucrative odds but are also harder to win.
Unlicensed Operators Still Pose A Threat
Looking ahead to this year, Miller said the AGA and its allies will continue to push states and the federal government to go after unlicensed operators. Traditionally the main threat has been offshore sportsbooks and online casinos, which Miller said attracted more than $400 billion in wagers last year.
However, he added new threats are emerging that are based in the United States. That includes federally regulated exchanges offering sports markets despite the U.S. Commodity Futures Trading Commission expressing concerns about their legality. In addition, several so-called sweepstakes operators now offer bettors a chance to play for cash.
“These entrants deploy legal acrobatics to avoid calling themselves betting or gambling, only then to offer products that most, universally, would agree are gambling, yet without those safeguards and regulatory constraints that build consumer trust, promote responsibility and support state budgets,” Miller said.
USA Today photo by David Richard
