North Carolina Sports Betting Grows in May Ahead of Looming Policy Shifts

North Carolina’s sports wagering sector posted another strong month in May, underlining the state’s relentless appetite for regulated wagering just over a year after the market’s official launch. According to figures published by the NC Lottery Commission this week, bettors placed almost $550 million in wagers last month, maintaining steady year-on-year growth and indicating that the market has yet to taper off.

Sportsbooks Recorded Another Stellar Month

May’s gross wagering revenue rose a steady 3.3% compared to the same month in 2024, settling at $65.2 million. However, this figure marked an impressive 39% increase from last month. While revenues fell short of April 2024’s record-setting $105.3 million, bolstered by the excitement surrounding the initial month of legal online betting, these newest results are still notable, given the decline in promotional spending by operators.

North Carolina’s eight state-licensed sportsbooks, including industry leaders such as FanDuel, DraftKings, and BetMGM, launched in April 2024 with a substantial promotional push to grab early market share. While such marketing efforts have tapered off, wagering volume remains strong. The hold rate for May was 11.65%, a figure considered healthy by industry standards. 

Under North Carolina’s current regulations, operators must pay an 18% tax on gross wagering revenue. For May, that translated to approximately $11.7 million. State coffers have benefited from more than $155 million in total taxes since the regulated market’s launch. The state uses most of these funds for community-focused initiatives, including direct support to athletic departments at 13 public universities across the state.

Fiscal Uncertainty Could Spell Trouble

While North Carolina’s wagering market remains healthy, the foundation underpinning North Carolina’s gambling regime could soon change. The state Senate’s budget bill doubles the tax rate on sportsbook revenue from 18% to 36%, a move that, if implemented, would make North Carolina one of the highest-taxed sports betting markets in the USA. The House has introduced legislation that would keep the current rate, with negotiations ongoing.

Operators will be closely watching for signs of how the discussions will shake out. Industry insiders warn that a sudden steep hike could reduce investments in the sector, wind down promotional spending, or even lead to reduced competitiveness due to smaller players dropping out. Even industry giants like DraftKings and FanDuel remain apprehensive and will likely push back against drastic tax increases.

While North Carolina’s market retains its impressive momentum, the rest of 2025 and beyond will likely hinge upon shifts in taxation and regulatory structure. Whether the state opts for a more aggressive fiscal approach or sticks with its current model, sports wagering will likely remain a central feature in the state’s evolving economic landscape.