North Carolina Collects More than $6B In Wagers in First Year of Sports Betting

North Carolinians wagered more than $6.1 billion on sports during the first year of operation, per figures released Monday by the North Carolina Lottery Commission. Another $500 million was spent on promotional credits.

North Carolina was the 38th state to green-light sports betting when it began operations last March, ahead of the NCAA men’s and women’s basketball tournaments. Even though sports betting did not debut until the 11th, a record $659.3 million was spent in the first month.

That’s partly because bettors took advantage of $202 million in free or promotional bets. This is at a time when the likes of Georgia, are considering a wager limit.

Altogether, the state’s eight authorized betting operators, DraftKings, FanDuel, BetMGM, bet365, Caesars, Fanatics, ESPN BET, and Underdog Sportsbook, made more than $713 million in gross wagering revenue and paid over $128 million in taxes last year.

While 2025 is off to a slow start, the February handle of $543.4 million marked a 16% decrease from the $646.9 million bet over January, numbers are expected to tick back up over the next month. In a state where college basketball reigns supreme, March Madness figures to be a busy time for sports bettors.

Top-ranked Duke has emerged as the championship favorite across most sportsbooks on the men’s side. Meanwhile, on the women’s side, North Carolina State, Duke and North Carolina are on the short list of contenders.

Despite the smaller handle, sportsbooks still recorded a 10.2% hold. That was down from January’s 11.5% hold but still was better than the yearly average. Sports bettors collected $485.2 million in winnings, the lowest amount since last September. 

Sportsbook operators are taxed at 18% in North Carolina. Tax proceeds are split between a number of programs, including the 13 different state university athletic departments and the state’s general fund.

The state’s unique tax laws, which require bettors to pay taxes on their winnings without being able to deduct their losses, have drawn a wave of criticism. A bill in the North Carolina House aims to change that, though obstacles remain. 

Revenue from U.S. sports betting hit a record $13.7 billion in 2024, a year-over-year increase of 25.4%. Vermont was the other state in its first year of operation, while Missouri is expected to launch this fall.