North Carolina sportsbooks see record-low revenue despite $370M handle in July

North Carolina sports bettors wagered more in July 2025 than during the same month last year, but operators posted their lowest revenue and the state collected its smallest tax haul since legal wagering began in March 2024.

Data from the North Carolina State Lottery Commission shows operators generated $22,679,993 in gross wagering revenue from a $370,385,588 handle in July. Revenue declined 46.2% year over year from $42,226,041 in July 2024. The July handle was down 14.4% from June 2025 but up 8.8% from the same month last year.

The state’s eight online sportsbooks reported a 6.1% hold in July, the second-lowest win rate since launch, following a 5.6% hold in March 2025 during the NCAA men’s basketball tournament. June 2025’s hold was 13.4%. Account-holder returns totaled $344,600,000 in July.

Tax revenue declines

North Carolina applies an 18% tax on gross wagering revenue. The July tax take was $4,082,399, down from $10.4 million in June and the lowest monthly total since the market launched. The state had collected at least $6 million in taxes each month before July.

Year to date, sports betting in North Carolina has generated more than $60 million in tax revenue. In 2024, from the March launch through December, the state collected $105 million.

Tax revenue is distributed to athletic departments at 13 University of North Carolina system schools (not UNC or NC State), two youth sports organizations, gambling education and treatment programs under the Department of Health and Human Services, a major events fund, and the state’s general fund. Proposals to change the distribution formula to include UNC and NC State remain pending while lawmakers have yet to pass a new state budget.

Seasonal impact on handle

Sportsbooks in North Carolina saw peak profits in May and June 2025 during the NBA and NHL playoffs, generating more than $123 million in operator earnings over those two months. In July, with only Major League Baseball, golf’s final major of the year, and one NFL preseason game to attract bettors, the handle decreased from June.

Historically, June, July, and August have been the slowest months for sports betting in the state. Promotional spending by operators totaled $8.8 million in July, the lowest amount so far this year and down from $12.4 million in June. Operators also deducted more than $3 million in canceled or voided wagers from taxable revenue.

North Carolina sportsbooks have recorded only three months with a hold below 7% in 17 months of operation. While the July hold favored bettors, the lower handle compared to earlier months limited overall operator revenue.