Anticipating the Future: Examining Upcoming Developments

Sports Betting in North Carolina Shows Resilience

It's clear that North Carolina's sports betting market has some fight in it, as revenue saw a boost in May, even though total bets placed dropped slightly compared to the previous month. The State Lottery Commission reported a total revenue of $65.2 million for May, marking a solid 39.3% increase from April and a modest 3.33% year-on-year gain. However, this number still falls short of the all-time high of $105.3 million recorded in April 2024, the month legal online sports betting went live in North Carolina.

Bigger Wins for Sportsbooks: Despite the dip in total bets, North Carolina's sportsbooks managed to rake in more cash, thanks to a higher win rate. The hold rate, or the percentage of total bets kept by operators, rose to 11.65% in May, up from 8.12% in April. Though below the 12.01% recorded in May 2024, the stronger hold played a significant part in the increase in monthly revenue.
Tax Revenue Reaches Highest Since January: The state cashed in an estimated $11.7 million in tax revenue in May, the highest since January. This success can be attributed to the improved hold rate and consistent consumer interest, despite a minor decline in wagering activity.

North Carolina's tax structure levies an 18% rate on operators' gross wagering revenue. The funds generated from this tax are directed towards youth sports, education, and problem gambling prevention programs, among other public initiatives. However, the State Lottery Commission doesn't share data on individual sportsbook operators, making it challenging to gauge performance across platforms. Notable brands like FanDuel, DraftKings, BetMGM, and Fanatics are active in the state, having entered the market following the launch of mobile betting in March 2024. As a result, North Carolina has emerged as a robust mid-sized market with a diverse operator pool and an eager betting community.

Seasonal trends and promotional strategies continue to influence monthly figures in the sports betting scene. With the NBA Finals, MLB regular season, and international soccer tournaments now underway, betting volume could see a summer surge. To keep an eye on market developments, regulators and industry stakeholders will closely monitor May's revenue trends and whether North Carolina can inch closer to or even surpass previous monthly records as we move into the second half of the year.

Despite short-term fluctuations, it appears that North Carolina's sports betting market is stable and on an upward trajectory, with revenue and tax receipts trending positively as the state establishes itself in the national sports betting landscape.

Insights:- Sportsbooks benefited from more favorable outcomes during the NBA playoffs, helping to boost the hold rate higher than in April 2025 (11.65% vs 8.12%).- May 2025's hold rate was lower than the rate in May 2024 (11.65% vs 12.01%), but it still contributed to an increase in revenue due to lower total wagering in April 2025 compared to May 2024.- In May 2025, the revenue increased by approximately 3.3% year-over-year, rising from $63.1 million in May 2024 to $65.2 million in May 2025.- Lower promotional activities by sportsbooks may have contributed to increased revenue margins for operators, as fewer giveaways meant more revenue retention.- The monthly handle of over $500 million for the ninth consecutive month points towards a steady and growing market supporting the revenue increase.

Users in North Carolina may have shifted their focus from online casino games and poker to sports betting, as the latter saw a notable increase in revenue, despite a slight decrease in total bets placed.
For those interested, they might also consider exploring online casino platforms or sports betting sites that offer poker games, as these platforms are increasingly popular, with brands like FanDuel, DraftKings, BetMGM, and Fanatics being among the active operators in North Carolina's growing sports betting market.