North Carolina’s sports betting market has set an incredible precedent in its first full fiscal year by outperforming all financial forecasts. With a handle of $6.64 billion in FY25, the market’s success highlighted strong consumer demand, widespread operator participation, and substantial tax contribution to state programs.
Record-Setting Growth in FY25
The fiscal year 2025 (July 2024 – June 2025) marked the first full operational year of legalized online sports betting in North Carolina. The total betting handle reached $6.64 billion, far above the $3.9 billion originally projected by analysts. The data was reported by the North Carolina State Lottery Commission.
Key Financial Metrics
- Total Handle: $6.64 billion
- Gross Wagering Revenue: $647.7 million
- Tax Revenue Collected: $116.6 million (at 18% tax rate)
- Promotional Wagers: $222.5 million
- Amount Paid as Winnings: $5.95 billion
- Hold Percentage: 9.75%
Notably, the $116.6 million in tax revenue nearly doubled the initial projections of $53 million, showcasing the market’s resilience and engagement level.
Market Outperforms Expectations
The performance of North Carolina’s sports betting market has exceeded expectations across the board, becoming one of the standout markets in the United States.
Operators driving this growth include major brands like FanDuel, DraftKings, BetMGM, and Fanatics. The state attracted significant consumer interest, as evidenced by the higher-than-expected handle.
Monthly Insights and Trends
While the FY25 handle set records, June 2025 experienced a slight seasonal decline:
- June Handle: $433.2 million (10-month low but 8.8% higher year-on-year than June 2024)
- June Gross Revenue: $58.1 million
- June Hold Percentage: 13.41%
No operator-specific breakdowns were disclosed by regulators for June or other months.
Tax Revenue Allocation
The $116.6 million in tax revenue generated during FY25 has been distributed as per state law, benefiting various programs:
- $2 million annually for gambling addiction awareness and treatment.
- $1 million for youth sports initiatives.
- $300,000 each to 13 UNC system universities for athletic department expenses.
- $1 million for amateur sports teams and events.
- The remaining revenue is split into three categories:
- 20% to university athletic departments.
- 30% to a major events fund.
- 50% toward the state’s general fund.
Industry Analysis and Future Outlook
Industry experts praise North Carolina’s sports betting market for its robust launch and sustained growth. The 9.75% hold percentage highlights strong consumer demand and effective operational policies. With prominent operators and engaged consumers, the state is poised for continued success.
Looking ahead, North Carolina is expected to sustain growth as awareness increases and more operators potentially enter the market, contributing further to state revenue and public programs.
