Since launching online betting in March 2023, the state has accumulated over $62 million in tax revenue, significantly outperforming expectations. With more than $2.5 billion wagered so far, the success of sports betting in North Carolina has brought optimism about the future of both online and retail betting in the state.
Sports Betting Revenue Surges Past Expectations
North Carolina’s sports betting figures demonstrate a strong start, with the state’s revenues far surpassing projections. Lawmakers had initially estimated that sports betting would generate $36.1 million in tax revenue for the 2025 fiscal year.
However, with $49.5 million already garnered between March and June alone, North Carolina is well ahead of schedule. The gross gaming revenue of $275.1 million from these months, taxed at an 18% rate, reflects the burgeoning success of this new market.
The momentum continued into the early months of fiscal year 2025, with North Carolina collecting an additional $13.6 million in tax revenue in July and August. This put the state well on track to surpass the previous forecast of $53 million in annual tax revenue.
“With more than $2.5 billion wagered in the state, it is clear that North Carolina’s sports betting landscape is thriving,”
said Sterl Carpenter, the deputy executive director of gaming compliance and sports betting. The strong numbers have raised confidence that the expansion into retail sports betting will add further revenue.
However, it’s worth noting that despite these encouraging figures, a large portion of the North Carolina population has not yet engaged in sports betting. A recent WRAL News poll found that 64% of North Carolina adults have not placed a single bet since the launch.
Even so, the volume of wagers indicates that a relatively small portion of bettors are contributing to the substantial revenue totals. These bettors are typically younger men with children, residing in urban or suburban areas, with 17% of urban men betting more than five times since the launch.
Retail Sports Betting Set to Expand Market
North Carolina is now preparing for the launch of retail sports betting, which will allow for in-person wagering at designated locations. The North Carolina Lottery Commission has recently approved certificates of compliance for operators, paving the way for physical sportsbooks.
Sterl Carpenter highlighted this development, noting that
“approval was granted for operators to begin the process of obtaining the necessary certifications to offer retail betting,”
signifying a key milestone toward expanding sports betting options in the state.
Retail sports betting locations have been identified at prominent venues across North Carolina, including PNC Arena in Raleigh, Bank of America Stadium in Charlotte, and Sedgefield Country Club in Greensboro. However, unlike the coordinated rollout of online betting, the retail launch dates will vary by facility. Operators must undergo rigorous testing and complete on-site inspections to secure their launch, with each facility determining its own start date.
The delay in launching retail sportsbooks may have cost the state some revenue, especially considering major sporting events like PGA and NASCAR over the summer. Despite the delayed launch of brick-and-mortar facilities, operators are still eager to set up shop, hoping to complement and compete with the already thriving online market.
