North Carolina Sports Betting Reports Strong April, Still Pondering Tax Rate Increase

• The North Carolina Lottery Commission reported strong sports betting numbers for April
• Sports betting customers wagered $560.7 million during the month
• The state took in more than $8.4 million in tax revenue

North Carolina experienced a strong April for sports betting, despite experiencing a decrease in handle from its March totals.

The North Carolina Lottery Commission reported $560.7 million in online sports betting handle for the month, a nearly $107 million decrease in North Carolina sports betting handle compared with its March totals.

Despite the decrease in activity, the state saw an increase of nearly $1.7 million in sports betting tax revenues in April.

No March Madness, No Problem

The North Carolina Lottery Commission reported $560,666,439 in total online sports betting handle for the month, a decrease of nearly $107 million from March’s sports betting handle total of $667,058,573.

Interest in sports betting during March was high, as sports betting customers flocked to their apps for the NCAA’s March Madness basketball tournaments. Despite the higher betting volume, April was a more profitable month of sports betting for the Tar Heel State.

The commission reported $46,803,712 in gross gaming revenues. North Carolina’s sports betting tax rate is 18%, so the state took in $8,424,668 in sports betting tax revenues. The NBA playoffs, which begin in April, were more profitable for the state than March Madness, which saw a number of favorites covering during the tournament.

The state only reported $38,140,361 in gross gaming revenue for March, leading to $6,865,265 in sports betting tax revenues.

To date in fiscal year 2025, North Carolina sports bettors have wagering more than $5.4 billion and the state has taken in nearly $94.3 million in sports betting tax revenues.

Lawmakers Pondering Tax Rate Increase

While the North Carolina sports betting market is strong, lawmakers are pondering a potential increase to its tax rate to bring in more revenue.

Members of the Senate introduced their two-year, more than $65 billion state budget in April, which includes a 100% increase to the North Carolina sports betting tax rate. If approved, North Carolina’s new rate will increase from 18% to 36% of gross wagering revenue for sports betting operators.

The House has yet to introduce its own version of the budget.

If the new 36% tax rate is approved, it will go into effect for all licensed North Carolina sports betting operators on Oct. 1, 2025. The new rate will potentially put North Carolina near the top of the list for state sports betting tax rates. New York, New Hampshire, and Rhode Island feature the highest sports betting tax rates in the county at 51%, with Delaware next at 50%.

Illinois features a tiered sports betting tax rate that tops out at 40%. North Carolina would be aligned with Pennsylvania, which also taxes sports betting at 36%.

North Carolina launched sports betting in March 2024. Through its first 13 months of operation, the state has reported $751,975,244 in gross sports betting revenue. This has resulted in more than $135.35 million in total sports betting tax revenue for the Tar Heel State.

If the tax rate is increased to 36%, the state would have taken in more than $270.7 million in sports betting tax revenue during the same time period.