North Carolina’s sports betting market experienced an unprecedented decline in July 2025, recording its lowest-ever monthly revenue. Factors such as seasonal trends, increased bettor success, and market dynamics all contributed to this dramatic dip. However, experts remain optimistic about the market’s rebound.
July 2025 Revenue and Handle Analysis
The North Carolina State Lottery Commission revealed that July 2025 saw gross gaming revenue of just $22.7 million—a substantial drop from $58.1 million in June 2025. The total sports betting handle for the month amounted to $370.4 million, reflecting a 14.5% decline month-over-month. However, compared to July 2024, the handle was up by 8.8%, signaling sustained market engagement.
| Month | Handle ($M) | Gross Revenue ($M) |
|---|---|---|
| July 2025 | 370.4 | 22.7 |
| June 2025 | 433.2 | 58.1 |
| July 2024 | 340.4 | 42.2 |
The Impact on State Tax Revenue
North Carolina imposes an 18% tax rate on sports betting revenue. Given the low gross revenue in July, the state collected only $4 million in tax contributions, a steep decline compared to the months before. This shortfall directly affects state-funded programs such as education initiatives, youth sports funding, and responsible gambling campaigns.
Understanding the Decline: Key Factors
Several elements contributed to the record low revenue in July 2025:
- Seasonal Slump: Historically, summer months are quieter for sports betting due to the absence of major sports events. This aligns with declines seen in June, July, and August in previous years.
- Bettor Payouts: July proved to be advantageous for bettors, resulting in significantly lower operator margins and, consequently, reduced gross gaming revenue.
- Market Stability: While revenue took a hit, the overall handle remains strong compared to July 2024, pointing toward sustained bettor interest in North Carolina’s market.
Broader Fiscal Context
Despite the short-term dip, North Carolina’s sports betting market continues to perform well overall since its March 2024 launch. For the 2025 fiscal year, the market achieved $6.4 billion in total handle and $647.7 million in gross revenue. The state remains a top-20 market nationally, consistently delivering robust tax revenues that outpace early legislative projections.
Looking Ahead: Market Recovery Prospects
With the start of the NFL season in September, experts expect a quick rebound in wagering activity and revenue. The market shows strong fundamentals and steady engagement, suggesting that July 2025’s record low is an anomaly rather than an indicator of long-term trends.
Conclusion
While North Carolina faced a challenging July 2025 for sports betting revenue, the overall market remains resilient. Seasonal factors and bettor success temporarily drove down revenue, but high engagement signals a promising recovery in the months ahead. North Carolina continues to establish itself as a significant player in the U.S. sports betting landscape, making critical contributions to state programs through tax revenues.
