North Carolina’s online sports betting market posted a modest slowdown in May 2026, as wagering volume and operator revenue both slipped compared to the same period last year. According to figures released by the North Carolina State Lottery Commission, the state’s seven licensed sportsbooks generated $578.1 million in wagers during the month. That marked a 2.8% decline from May 2025. Gross gaming revenue reached $64.3 million, down 1.4% year over year.
Despite the decline, the overall drop was relatively limited considering the seasonal shift in the sports calendar. May represented the first full month without college basketball since March Madness concluded, leaving sportsbooks more reliant on the NBA playoffs, Major League Baseball, and NHL postseason wagering. Operators also continued a recent run of strong hold percentages, helping keep revenues stable even as betting volume softened.
The latest figures also represented the lowest monthly handle in North Carolina since August 2025. However, sportsbooks still surpassed $60 million in monthly revenue for the third consecutive month, showing continued consumer engagement in the state’s relatively young regulated market.
While betting activity dipped slightly, sportsbooks continued benefiting from favorable hold rates. Operators recorded an 11.1% win rate during May, extending a streak of 10 consecutive months with double-digit holds in North Carolina. Although that percentage was slightly lower than the 11.6% recorded in May 2025, it remained tied with April for the second-highest monthly hold of 2026 so far.
Bettors collectively won back approximately $510.4 million during the month, the lowest payout total recorded in the state over the last nine months. Promotional spending also declined, with sportsbooks issuing $16.9 million in promo bets, down 6% from April. Canceled and voided wagers accounted for another $3.5 million.
One contributing factor to sustained operator performance was heightened interest surrounding the Carolina Hurricanes’ playoff run. NHL postseason action added another major betting event during a period that is often quieter after the conclusion of the college basketball season. Combined with NBA playoff betting and regular MLB wagering, sportsbooks maintained solid engagement levels despite lower overall volume.
The latest revenue report also arrives as North Carolina lawmakers continue discussing a potential increase to the state’s sportsbook tax rate. Operators currently pay an 18% tax on gross gaming revenue, but legislators are reportedly considering increasing the rate to somewhere between 20% and 30%.
During May alone, sportsbooks contributed roughly $11.6 million in tax revenue to the state. Since the start of 2026, North Carolina has generated more than $60 million in estimated sportsbook taxes. For the current fiscal year ending in June, total sports betting tax revenue has exceeded $133 million, representing a 14% increase from the previous year.
If lawmakers ultimately approve a higher tax rate, operators may face increased financial pressure moving forward. That could influence future promotional spending, market competitiveness, and long-term profitability in one of the newer regulated sports betting states in the country. For now, though, the May numbers suggest North Carolina’s market remains stable even as growth slows from earlier peaks.
