North Carolina sports betting operators suffered a slight year-over-year handle decrease in May, but profits rose slightly.
Key takeaways
- The Tar Heel State’s sports wagering handle fell 7% from May 2024.
- The latest month’s 11% hold helped make up for the last two months of lesser revenue.
- A tax rate decision on sports betting operators is coming by July 1.
The North Carolina State Lottery Commission reported Monday that eight online operators generated $562.2 million in wagers, down 7% from May 2024’s $525.5 million. The latest monthly handle is the ninth consecutive to surpass $500 million.
Revenue spiked 3.3%, rising year-over-year from $63.1 million to $65.2 million. It’s the sixth-highest profit haul since North Carolina launched online wagering in March 2024 and 2025's second-best, helping make up for a March and April that both fell below $50 million.
Thanks to sportsbook-friendly outcomes in the NBA Playoffs, North Carolina sports betting operators enjoyed an 11.6% hold in May, down from the previous year’s 12%, but the first in double digits since February.
| N.C. Sports Betting | Handle | Revenue | Tax (estimated) |
|---|---|---|---|
| May | $547,812,855 | $65,227,119 | $11,740,881 |
Other May figures
May’s $14.4 million in promotional wagering was more than $1 million less than online operators spent in April. $4 million in canceled or voided wagers were nearly identical to the previous month.
Bettors took home $492.2 million in May, down from April's $525.3 million haul. The Tar Heel State filled its coffers with an estimated $11.7 million, giving North Carolina more than $10 million in tax revenue for five of the last nine months.
Tax rate decision coming
North Carolina's latest tax haul put the year-to-date total over $50 million and more than $100 million during this fiscal year, ending in June. The Tar Heel State could see additional sports betting income in 2026, but that’s far from a lock.
The Senate passed a state budget in April that proposed doubling the tax rate on sportsbooks from 18% to 36%. The House, citing concerns about pushing bettors to the illegal market and damaging the current landscape, passed a budget that doesn’t increase the current rate. Now, the two sides are working on compromises to this issue and several other disagreements. They have until July 1 to agree on a finalized budget.
North Carolina generated over $8 billion in wagers since March 2024. FanDuel, DraftKings, BetMGM, Caesars, ESPN BET, Underdog, Fanatics Sportsbook, and bet365 raked in $800 million in revenue during that span, paying out over $140 million in state taxes.
