Key Takeaways
•North Carolina sports bettors have wagered more than $15 billion since regulated betting launched in March 2024.
•Lawmakers want to raise the tax rate on sports betting operators from 18% to 23%.
•The Sports Betting Alliance says the increase will hurt state-regulated operators.
North Carolina’s sports betting market continues its remarkable run, with bettors wagering more than $561 million in May 2026, marking the ninth straight month the state has surpassed the $500 million threshold.
The milestone arrives as state budget negotiators have quietly agreed to hike the tax rate on licensed operators from 18% to 23%, a move that has drawn sharp pushback from the industry.
Nine Months, Nine Figures: Betting Activity Remains Strong
North Carolina’s regulated sports betting market continues to grow. According to reports from WRAL, bettors placed more than $561 million in wagers during May 2026, marking the ninth straight month that betting totals topped $500 million.
The market has shown steady growth since launching in March 2024. In May 2024, bettors wagered about $525 million. That number rose to $562 million in May 2025 and reached $578 million in May 2026.
Through the first five months of 2026, North Carolina bettors have wagered about $3.2 billion. That is up from $3.0 billion during the same period in 2025.
Since launch, total betting handle has now passed $15 billion. The North Carolina Lottery Commission does not release data by operator or sport, so it is unclear which platforms hold the largest share of the market.
Tax Hike on the Table: From 18% to 23%, Industry Pushes Back Hard
State budget negotiators have agreed to increase the tax rate on sports betting operators from 18% to 23%. The overall state budget is still being finalized.
Since sports betting launched, operators have generated more than $1.6 billion in gross wagering revenue and paid about $299 million in taxes under the current rate. If the proposed 23% rate had been in place from the beginning, the state would have collected roughly $83 million more.
North Carolina’s annual budget is more than $32 billion, so sports betting taxes make up only a small part of total state revenue. Still, lawmakers see the industry as a reliable source of funding. House Speaker Destin Hall called sports betting “a tremendously successful policy in this state.”
The Sports Betting Alliance, a group that represents regulated sports betting operators, strongly opposes the proposed tax increase.
In a statement, the organization said the higher rate would punish companies that helped build the regulated sports betting market while already providing significant tax revenue to the state and university athletic programs.
This debate is common across the United States. As sports betting markets grow and produce more revenue, lawmakers often seek higher tax rates, while operators warn that additional costs could make regulated sportsbooks less competitive.
Where the Money Goes
North Carolina uses sports betting tax revenue to support several programs across the state.
Funding goes toward gambling addiction treatment and education, youth sports programs, the Major Events, Games and Attractions Fund, and athletic departments at 13 UNC System schools. Revenue also supports the state’s general fund, which helps pay for services such as education, transportation, public safety, and health care.
Because the money benefits many programs, sports betting has gained support from lawmakers on both sides of the political aisle.
Looking Ahead: World Cup, Tax Votes, and Summer Momentum
Sports betting activity in North Carolina usually slows during the summer months. However, this year could be different because the FIFA World Cup is being held across North America, including the United States.
The tournament could help increase betting activity and offset the usual seasonal decline. The Carolina Hurricanes’ playoff run may have also contributed to strong betting numbers in May, although state reports do not provide sport-specific data.
The proposed tax increase still needs final approval as part of the state budget process. If approved, North Carolina’s 23% tax rate would be higher than it is today, but still similar to rates seen in other competitive sports betting markets.
Industry observers will be watching closely to see how operators respond and whether the higher tax rate affects future growth.
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