North Carolina’s Sports Betting Market Sees Strong January Growth

North Carolina’s online sports betting market recorded one of its best months yet in January 2025, with $646.9 million wagered and $74.5 million in revenue. This marked a 108.7% revenue increase from December, making it the second-highest monthly total on record, according to data from the North Carolina State Lottery Commission.

Betting Revenue and Market Trends

January’s figures show a 2.8% increase in total wagers compared to December, making it the fourth-highest month since the state legalized sports betting in March 2024. Out of the total handle, $623.3 million came from paid bets, while $23.6 million was attributed to promotional offers.

The month’s 11.05% hold rate marked a major recovery from December’s 5.67% hold, the lowest since the market launched. However, it was still short of April 2024’s peak of 16.22%.

State regulators reported that $3.9 million in wagers were either canceled or voided, the highest since April 2024’s $5.3 million.

Tax Revenue and Promotional Spending

Sports betting in North Carolina is taxed at 18%, which resulted in $13.4 million in state tax revenue for January—second only to November’s $14.1 million. Since March 2024, legal operators have contributed over $118 million in taxes to the state.

The state’s eight mobile sportsbook operators—FanDuel, DraftKings, bet365, BetMGM, ESPN BET, Underdog, Fanatics Sportsbook, and Caesars—spent $23.6 million on promotional credits, a notable increase from $16.1 million in December. This marked the highest promotional spend since September’s $37 million.

Year-to-Date and Super Bowl Expectations

With over $6 billion wagered since North Carolina legalized online sports betting, 5.6 billion came from paid bets, while $474 million was allocated to promotional offers.

The Super Bowl, which took place on February 9, 2025, is expected to boost February’s figures significantly, as this was the first year North Carolinians could legally bet on the event statewide.

GeoComply, a company that verifies bettors’ locations, reported a 14% increase in active betting s over Super Bowl weekend compared to last year. The official February sports betting revenue figures will be released in March.

Future Legislation and Tax Implications

North Carolina currently requires bettors to pay state taxes on winnings while preventing them from deducting losses, unlike federal tax rules. Some lawmakers have introduced legislation to amend the tax policy, retroactively applying the changes to 2024 earnings.

With continued growth in handle and revenue, North Carolina’s sports betting industry is becoming one of the most robust in the U.S., setting the stage for further policy discussions and potential expansions in the coming months.

Source:

North Carolina Eclipses $6B Bet on Sports Before the Super Bowl, wral.com, February 2025.