Just over one year after North Carolina launched its online sports betting market, the returns are significantly ahead of what was expected.
State officials estimated before online sports betting was legalized in 2023 that the market would create $6.6 billion in wagers in three years. The North Carolina Lottery’s revenue report released on Tuesday confirmed that they were two years too pessimistic, as bettors combined for $6.6 billion in bets between July 2024 and June 2025.
As a result, North Carolina received an estimated $116.4 million in taxes from its eight legal sportsbooks in FY 2024-25. Officials projected FY 2027-28 as the time when the state would receive at least $100 million in sports betting taxes in one year.
Well ahead of schedule
According to the FY 2024-25 revenue report, sportsbooks had a hold of close to 10%. Bettors wagered more than $6.6 billion and collected just under $5.9 billion in winnings, leaving around $700 million for sportsbooks.
March was the most successful month for sportsbooks, which reported $685 million in total wagers during the period largely thanks to March Madness. That month alone resulted in $38.1 million in gross revenue and $6.9 million in tax contributions.
June 2025 was the least productive month of the fiscal year for sportsbooks. That's expected, as summer is considered a “dead season” for sporting events.
Sportsbooks accepted $433.2 million in wagers during June, their lowest amount since July ($340.4 million) and August ($370.5 million) 2024.
More than $8.8 billion has now been wagered by North Carolinians since online sports betting went live in March 2024. Sportsbooks have paid close to $7.9 billion in winnings and $166 million in taxes based on the state’s 18% tax rate.
The state Senate attempted to raise the tax rate to 36% in its latest budget, but the House kept the rate at 18%.
More changes on the way?
North Carolina legalized in-person sports betting at tribal casinos in 2019. Its retail market launched at two casinos in 2021, meaning that most of the state didn’t have easy access to betting odds until online sportsbooks went live.
Under the state’s current arrangement, sports betting tax money is shared between the Department of Health and Human Services for gambling addiction education and treatment, a pair of youth sports and outdoor organizations, a fund focused on bringing major events to the state, the state’s general fund, and 13 in-state colleges and universities.
Notably, UNC-Chapel Hill and NC State are not included in the list of schools receiving tax funding. The House and Senate budget proposals both included them in the arrangement, though there was disagreement over how much would be allocated to each school.
Bubba Cunningham, North Carolina’s athletics director, said the school could use the dollars.
“Hopefully we’re going to get some of the gambling money."
UNC could award up to $20.5 million to student-athletes next year based on a federal court settlement that issued guidelines to revenue sharing between schools and college athletes.
North Carolina recently floated several other changes to its sports betting ecosystem. House Bill 14, which is sitting idly in the Finance Committee, would allow for state income tax deductions on gambling losses.
Another bill attempted to ban college player props, though that did not receive much support.