Impressive June Shows North Carolina Sports Betting Market Still Growing

Sports betting continues to exceed all expectations in the Tar Heel State.

The North Carolina State Lottery Commission (SLC) has reported that the state saw over $420 million in wagers for the month of June. This represents an increase of over 8% year-over-year and is projected to result in $10.4 million in tax revenue for the state. Operators also saw a year-over-year increase in revenue, which was up. 

June also represented the end of the state’s first fiscal year with legal sports betting. The SLC reported that North Carolina bettors wagered over $6.4 billion (excluding promo bets) for the year, generating $116 million in tax revenue. 

When North Carolina passed a bill to legalize sports betting in 2023, it projected that the state would see around $6 billion in wagers over the first three years. 

While the NLC does not share revenue numbers broken down by operators, it’s expected that industry giants FanDuel and DraftKings saw the vast majority of wagers over the first fiscal year, and again last month. 

Is a New Tax Hike Proposal Coming?

With North Carolina’s sports betting market thriving, some lawmakers made a push to double the operator tax rate to 36% during the last legislative session. The Senate proposal ultimately failed in the House, meaning it will remain at 18% for the time being.

June’s numbers may lead to another tax hike being proposed in the next session with more support. When the rate was initially set, it was based on projections that have since been significantly revised. With the market seeing far more action than anyone expected, expect many lawmakers to call for the state to receive more compensation. 

While momentum may build for raising the state’s 18% rate, it will be met by fierce opposition from the industry. Operators sent a letter to lawmakers as they considered the last proposal, warning that bettors would ultimately be the victims of a tax hike. 

The question now is how House representatives who rejected the previous hike would respond to a smaller one. Several markets have had success passing bills to implement smaller increases to the tax rate, and it could end up being the case in North Carolina in 2026.