North Carolina’s sports betting market maintained strong momentum in May 2025, continuing to show robust year-over-year growth just over a year after its official launch. According to the North Carolina Lottery Commission, bettors wagered nearly $550 million, signaling sustained enthusiasm despite a pullback in promotional spending across the industry.
May Revenue Rebounds Despite Tamer Promotions
Gross wagering revenue reached $65.2 million, a modest 3.3% increase from May 2024, but a sharp 39% jump compared to April 2025. While still trailing behind April 2024’s post-launch surge of $105.3 million, the latest figures highlight the market’s underlying strength—even as early marketing blitzes by operators like FanDuel, DraftKings, and BetMGM have cooled.
With a healthy hold rate of 11.65%, operators generated an estimated $11.7 million in state taxes at the current 18% tax rate. Since the market’s debut, North Carolina has collected over $155 million in tax revenue, much of which supports community programs and athletic departments at 13 public universities.
Tax Policy Debate Poses a Threat to Market Stability
While the market remains on solid footing, looming regulatory changes are generating concern. A budget proposal from the state Senate aims to double the sportsbook tax rate to 36%, a move that would position North Carolina among the most heavily taxed U.S. sports betting jurisdictions. Meanwhile, the House version of the budget proposes to retain the current rate, setting the stage for a pivotal negotiation.
Industry stakeholders caution that a dramatic tax hike could disrupt the marketplace—dampening operator investment, slowing promotional activity, and tightening margins for smaller players. Even market leaders have signaled caution, with expectations of resistance to sudden cost increases.
Looking Ahead: A Market at a Crossroads
As the debate over fiscal policy unfolds, operators and analysts alike will be monitoring closely. Despite policy uncertainty, North Carolina’s sports wagering landscape remains resilient—but whether that momentum carries through the second half of 2025 depends largely on how lawmakers shape the next phase of regulation.
For now, one thing is clear: sports betting has quickly become a fixture of North Carolina’s economic ecosystem, and its future will be shaped not just by player demand, but by the policy decisions that guide it.
