North Carolina Sportsbook Revenue Jumps 178% as 23% Tax Kicks In
Key Points
- Bettors in North Carolina wagered $566.35 million through the state’s seven licensed sportsbooks in July, up about 53% year over year.
- Sportsbooks kept $63.22 million in gross wagering revenue, producing an 11.2% hold compared with roughly 6.1% in July 2025.
- Estimated state tax proceeds reached $14.04 million in the first monthly report reflecting North Carolina’s new 23% sportsbook tax rate.
- July extended North Carolina’s streak of $500 million-plus wagering months to 11, while the World Cup knockout rounds gave bettors a major event during an otherwise quieter part of the U.S. sports calendar.
North Carolina Books Had a Much Better July Than Last Year
North Carolina’s seven licensed online sportsbooks accepted $566.35 million in wagers during July and paid bettors $498.73 million in winnings, according to the North Carolina State Lottery Commission’s August 28 revenue report. Operators finished with $63.22 million in gross wagering revenue.
Compared with July 2025, handle increased from $370.39 million, or roughly 53%, while sportsbook revenue climbed from $22.68 million to $63.22 million - an increase of nearly 179%.
Of course, the new tax rate did not cause sportsbook revenue to jump 178% alone. July combined substantially more betting volume with a much stronger operator hold, and the higher tax rate then gave the state a larger cut of those winnings.
An 11.2% Hold Did Most of the Heavy Lifting
Sportsbooks retained about 11.2 cents from every dollar wagered in July, compared with approximately 6.1 cents per dollar during the same month last year. That swing in hold explains why gross revenue grew much faster than handle.
July was hardly empty from a sports perspective, either. The FIFA World Cup knockout rounds ran through much of the month, including the Round of 16, quarterfinals, semifinals and July 19 final.
There is a limit to what the state numbers can tell us, though. North Carolina reports aggregate monthly wagering rather than handle broken down by sport, so the World Cup’s exact contribution to the 53% increase cannot be isolated from the Commission’s data.
The 23% Tax Rate Started Partway Through July
North Carolina lawmakers increased the operator tax on gross wagering revenue from 18% to 23% through the 2026 appropriations law. Gov. Josh Stein signed the legislation on July 7, and the tax increase applies to gross wagering revenue received from the date the law took effect.
That makes July a transition month rather than a clean, full-month test of the 23% rate. The Commission nevertheless lists estimated July tax proceeds of $14.04 million and identifies 23% as the applicable new tax rate in its report.
The figures remain preliminary. The Commission cautioned in its July report that “Final revenue amounts that operators report to the North Carolina Department of Revenue could be adjusted.”
Why This Matters For Bettors
For bettors, the immediate effect of the tax increase has been limited. North Carolina is taxing sportsbook gross revenue, not adding a 23% charge to winning tickets. There is also nothing in the July report showing that operators have already responded by worsening odds, cutting promos or otherwise passing the additional cost directly to customers.
The longer-term incentive is harder to ignore. Raising the rate from 18% to 23% represents a 27.8% increase in the operator’s tax bill for every dollar of taxable gross wagering revenue. A book earning $100 in taxable revenue previously sent $18 to the state; under the new rate, that becomes $23.
That can eventually matter to bettors through the less obvious parts of sportsbook economics.
Promotions, odds competitiveness, customer acquisition spending and retention offers are all costs operators can adjust when a market becomes more expensive. One month tells us nothing about whether North Carolina books will actually pull those levers, especially before football season brings the year’s biggest customer-acquisition fight.
What Happens Next
The better test begins with football season. August through the fall should show whether North Carolina’s operators maintain aggressive promo spending and competitive pricing while absorbing the higher tax burden.
The state will also continue publishing monthly revenue and estimated tax figures, giving bettors and lawmakers a clearer picture of how the 23% rate performs once there are several full months of data rather than one transition month.
JD has been betting since 2009, back when his bookie was a guy named Vin who ran lines out of Philly. He survived the sketchy offshore days (barely) and made the jump to regulated sportsbooks the second New Jersey legalized in 2018. Since then, he’s turned hunting bonuses and exploiting odds boosts into an art form.
These days, JD specializes in helping new bettors skip the rookie mistakes, as well as showing seasoned ones how to play the promo game like a pro. If there’s a bonus to be had or a line that doesn’t look right, JD’s probably already on it.
