North Carolina sports betting experienced year-over-year declines in May, but neither the handle nor the gross revenue dropped off significantly.
Key Takeaways
- North Carolina operators generated the lowest handle in nine months.
- Gross revenue was nearly identical to April.
- The tax rate on operators will likely be higher this time next year.
The North Carolina State Lottery Commission reported on Tuesday that the state's seven online sportsbooks generated $578.1 million in monthly wagers, a 2.8% decline from the previous May. Operators’ gross revenue of $64.3 million was down just 1.4% year over year and nearly identical to April’s haul.
May’s profits continued a run of three months with at least $60 million in North Carolina revenue, but the latest handle is the lowest since August 2025.
| N.C. Sports Betting | Handle | Revenue | YoY rev. change |
|---|---|---|---|
| May 2026 | $578,070,325 | $64,318,908 | -1.4% |
Heavy hold continues
North Carolina sports betting operators were helped by the Carolina Hurricanes' run in May to the Stanley Cup Final, where the Vegas Golden Knights currently hold a 2-1 series lead heading into Tuesday's Game 4. That helped the state’s bettors get through the first month without college basketball.
The NBA playoffs and MLB were also betting highlights in May, which produced the 10th consecutive double-digit win rate in the Tar Heel State. The 11.1% hold in May was down from the 11.6% from the same month in 2025. Still, May’s win rate tied April for the second highest produced year-to-date.
Bettors won back $510.4 million, their lowest total in nine months. There were $3.5 million in canceled/voided wagers, and operators spent $16.9 million in promotional bets, a 6% month-over-month decline.
Tax rate rising
FanDuel, DraftKings, BetMGM, Fanatics, Caesars, theScore Bet, and bet365 combined to send $11.6 million in taxes to the state. The 18% tax rate is expected to increase soon after lawmakers reportedly agreed to raise the levy on sportsbook revenue to between 20% and 30%.
The state has generated over $60 million in estimated tax revenue since 2026 began. The fiscal year, which ends in June, has filled North Carolina’s coffers with over $133 million, a 14% year-over-year increase.
Under a proposed 30% rate, the Tar Heel State would’ve hauled in $221 million at this point in the fiscal year.
