North Carolina Sports Betting Sees $128M In Taxes From First Year

In just one year since its launch, legal online sports betting in North Carolina has become a significant market, with total wagers exceeding $6.6 billion in paid and promotional bets, according to the state’s lottery commission.

Launched officially on March 11, 2024, online sports wagering is now a flourishing market in the state as residents have shown a strong appetite for North Carolina sports betting.

Bettors won more than $5.85 billion, according to the report from the North Carolina State Lottery Commission. A 10.7% hold left operators with $713 million in gross revenue.

At an 18% tax rate, operators sent more than $128 million back to the state in taxes.

Books Needed A Few Months To Break Even

The state’s eight licensed sportsbooks initially faced significant promotional expenditures to attract bettors, spending more than $202 million in March 2024 alone. Sportsbook operators successfully broke even in September 2024. That pivotal moment, driven by the onset of football season, marked the point when cumulative gross wagering revenue surpassed total promotional spending.

Betting activity peaked notably in November 2024 at $638 million, largely influenced by the NFL season, followed closely by robust performances in December ($613 million) and January ($623 million).

Ultimately, North Carolina’s successful first year of sports wagering has demonstrated the legalized betting market’s potential. Pari-mutuel betting on horse races remains under development as the North Carolina State Lottery Commission works to create a framework for the activity. In addition, a recent poll shows support for commercial casinos. Currently, the state has only three retail casinos, and they are all tribal-owned.

North Carolina Sports Betting Funds Addiction Education

Specifically, $2 million annually funds gambling addiction education and treatment programs managed by the North Carolina Department of Health and Human Services. Additional allocations include $1 million each for North Carolina amateur sports and the North Carolina Youth Outdoor Engagement Commission and $300,000 each for 13 state university athletic departments.

The state’s responsible gaming regulations mandate that sportsbooks provide tools such as spending and deposit limits and voluntary timeouts. Additionally, North Carolina offers a voluntary self-exclusion program, enabling individuals to restrict their own access to gambling activities for defined periods or even permanently.