North Carolina’s Sports Betting Market Sets Record in March

North Carolina’s sports betting landscape has seen unprecedented growth, with March 2025 marking a record-breaking month in terms of total wagers placed. According to data released by the North Carolina State Lottery Commission, the total sports betting handle in the state reached a remarkable $685 million (£536.2 million/€624.6 million) during the month of March. This figure not only surpassed the previous monthly record of $659.3 million set in March 2024 but also represented a 3.9% increase year-over-year.

March 2024 was a milestone in North Carolina's sports betting industry, as it marked the first full month of legal online sports betting in the state. This year-over-year increase in handle is indicative of the continuing expansion and growing popularity of sports betting in North Carolina, as bettors flock to both online and retail sportsbooks to place their wagers.

In comparison to February 2025, when the state saw $526 million in bets, March's total handle surged by 30.2%. This substantial rise highlights the continued growth of North Carolina's sports betting sector, despite a challenging revenue environment. While the volume of bets reached new heights, the corresponding revenue from those bets experienced a decline.

Declining Revenue Despite Record Handle

While the amount of money wagered on sports in North Carolina has reached new records, revenue from sports betting has shown a worrying downward trend. March’s total gross wagering revenue was reported at $38.1 million, marking a significant drop of 42.7% compared to the same month in 2024. Moreover, March’s figure was 31.6% lower than February 2025's revenue, making it the third-lowest monthly revenue since the state legalized sports betting.

The North Carolina State Lottery Commission provided further details on the revenue breakdown, noting that $667.1 million of the total wagered amount in March was categorized as “paid wagering revenue,” with $17.9 million classified as “promotional” revenue. The revenue shortfall can be attributed to a combination of factors, including voided and canceled bets amounting to $3.2 million, and a significant payout of $643.7 million to winning players.

This has resulted in a relatively low hold rate of just 5.78%, a key metric in the industry that reflects the percentage of wagers retained by sportsbooks. For comparison, the hold rate in previous months has generally been higher, with sportsbooks traditionally maintaining a hold rate around 7% or 8%.

Tax Revenue and Market Overview

Despite the decline in revenue, North Carolina continues to benefit from its sports betting market through taxation. The state collected approximately $6.9 million in sports betting taxes in March 2025, which is consistent with previous months and contributes significantly to the state's overall tax revenues.

Currently, eight online operators are active in North Carolina’s sports betting market, with major players like FanDuel, DraftKings, BetMGM, and Fanatics leading the charge. These operators are offering a wide array of betting options, ranging from traditional sports to niche markets, and continue to attract both casual bettors and more experienced gambling enthusiasts.

The volatility in North Carolina's sports betting revenue could be attributed to several factors, including seasonal fluctuations in sports events, changes in consumer behavior, and possibly a more competitive landscape as new operators enter the market. Operators also often offer promotions and bonuses that can skew revenue figures on a monthly basis, leading to a complex picture of the market’s health.

 

While the amount of money wagered on sports in North Carolina has reached new records, revenue from sports betting has shown a worrying downward trend.

What’s Next for North Carolina?

As North Carolina’s sports betting market matures, it will be important to monitor whether the growth in total wagers continues, and if sportsbooks can stabilize their revenue generation despite the declines seen in recent months. Industry experts are closely watching the impact of sports seasons—such as football, basketball, and upcoming major events like the NBA Playoffs and the NFL Draft—on betting activity.

Additionally, the continued evolution of sports betting legislation, with potential future expansions or adjustments to tax structures, could influence both operator performance and the broader market dynamics in North Carolina.

The state’s sports betting sector is still in its relative infancy, and it remains to be seen whether operators can strike the right balance between driving engagement with bettors and maintaining profitability amid an increasingly competitive and volatile environment.

In conclusion, while North Carolina has set new records in terms of sports betting handle, the persistent decline in revenue raises important questions about the sustainability of such growth in the long term. As the state’s market continues to evolve, it will be crucial to track both the challenges and opportunities that lie ahead for this burgeoning industry.