North Carolina Sports Betting Revenue Rises in May

North Carolina's legal sports betting market posted a mixed performance in May, with gross revenue rising even as total wagering activity declined slightly compared to the previous month.

According to figures released by the North Carolina State Lottery Commission, gross wagering revenue reached $65.2 million in May. This represents a 39.3% increase from April’s $46.8 million and a modest 3.33% year-on-year gain. However, it remains well below the state’s all-time high of $105.3 million recorded in April 2024, the inaugural month of legal online sports betting in North Carolina.

• Revenue Rises Despite Lower Handle: North Carolina’s sports betting revenue increased to $65.2 million in May, a 39.3% month-on-month jump, even as total wagering fell by 2.4% compared to April.

• Higher Hold Rate Drives Gains: Sportsbooks recorded an 11.65% hold in May, up from 8.12% in April, allowing operators to generate more revenue from fewer total bets.

• Tax Revenue Hits Four-Month High: The state collected an estimated $11.7 million in tax revenue—the highest since January—highlighting the growing fiscal impact of legal betting.

Total Handle Falls Below April Levels

The total amount wagered—known as handle—amounted to $562.2 million in May. This included $547.8 million in paid wagers and $14.4 million in promotional bets. While this figure was 7% higher than in May 2024, it was 2.4% lower than April’s handle of $570.2 million.

March 2025 still holds the state record with $695 million wagered, highlighting some volatility in the market as it continues to mature. Analysts suggest that the post-March dip may reflect the conclusion of major sports seasons, such as college basketball and early NBA playoff rounds. Despite the lower handle, sportsbooks achieved a higher win rate in May. The hold rate—the percentage of total bets retained by operators—stood at 11.65%, up from 8.12% in April. Though slightly below the 12.01% recorded in May 2024, the stronger hold contributed to the increase in monthly revenue.

Fluctuations in hold are common and often driven by betting patterns, game outcomes, and promotional activity. A higher hold typically signals more favorable results for sportsbooks or lower bettor success.

 

Tax Revenue at Four-Month High

May’s performance translated into an estimated $11.7 million in tax proceeds for the state. This is the highest monthly total since January’s $13.4 million and reflects the improved hold rate and steady consumer interest despite a marginal decline in handle.

North Carolina’s tax structure applies an 18% rate to operators’ gross wagering revenue. These funds are allocated to youth sports, education, and problem gambling prevention programs, among other public initiatives.

The State Lottery Commission does not publish data on individual sportsbook operators, making it difficult to assess performance across platforms. However, national brands such as FanDuel, DraftKings, BetMGM, and Fanatics are all licensed and active in the state. Since the launch of mobile betting in March 2024, North Carolina has emerged as a strong mid-sized market, benefiting from a competitive mix of operators and an enthusiastic user base. Seasonal trends and promotional strategies continue to shape monthly figures.

 

While total wagering dipped slightly, the stronger hold rate in May allowed sportsbooks to generate significantly more revenue—highlighting the market’s resilience even in a post-peak season.

 

Looking Ahead

With the NBA Finals, MLB regular season, and international soccer tournaments underway, betting volume could see a summer boost. The state’s regulators and industry stakeholders will be closely watching to see whether May’s revenue trend continues—and whether North Carolina can approach or exceed previous monthly records heading into the second half of the year.

Despite short-term fluctuations, the data suggests a resilient and growing market, with revenue and tax receipts trending upward as the state finds its footing in the national sports betting landscape.