North Carolina's sports betting market posted a solid but quieter May, with bettors wagering $578.1 million, the lowest handle since August 2025 and a 2.8% decline year-over-year. Gross revenue held nearly flat at $64.3 million, down just 1.4% from May 2025, with a potential tax rate hike looming that could reshape the market heading into the fall.
Strong Year-to-Date Numbers Despite May Slowdown
While May's handle was the lightest in nine months, the numbers still tell a strong story. North Carolina bettors wagered $578.1 million in May, generating $64.3 million in gross wagering revenue and $11.6 million in estimated tax proceeds for the state. The Hurricanes' run to the Stanley Cup Finals, the NBA playoffs, and a full MLB slate kept NC sports betting active through the first month without college basketball. Operators posted their 10th consecutive month of double-digit hold at 11.1%, and promo spending came in at $16.9 million, down 6% month-over-month, a sign the market continues to mature.
A slightly higher hold rate meant revenue held up despite the volume dip. Year-to-date through 11 months of fiscal 2026, the seven North Carolina betting apps have combined for over $7 billion in total wagers, generating $739.2 million in gross wagering revenue and $133.1 million in estimated tax proceeds, funds directed toward youth sports programs, gambling addiction treatment, and grants for university athletic departments across the state.
NC Sports Betting Tax Rate Set to Rise
The numbers look healthy, but NC betting operators may soon be sending a bigger cut to the state. According to a WRAL report, NC lawmakers have reportedly agreed to raise the sports betting tax rate, currently 18% of gross gaming revenue, to somewhere in the 20–30% range, with the expectation it lands at the lower end of that window. The increase is expected to be included in the state's upcoming budget, though operators could still push back and prompt amendments before anything is finalized.
This is the second straight year the issue has come up. During 2025 budget negotiations, the Senate proposed a dramatic jump to 36%, but the House did not support it and the increase was left out of the final budget. This time around, an agreement appears to already be in place. A per-bet fee similar to the model Illinois adopted in 2025 has also been floated, though the latest reporting did not address whether that component is still on the table.
For bettors, a tax rate increase doesn't directly change the betting experience, but it could influence how aggressively operators fund North Carolina sportsbook promos and bonuses going forward.
