North Carolina Sports Betting Hits $13 Billion in Two Years

North Carolina sports betting has reached a milestone, with bettors wagering more than $13 billion since the market launched two years ago. The state has collected more than $262 million in tax revenue from operators during the 24-month span. February 2026 marked the 24th month of north carolina sports betting online, with the first two years producing just under $14 billion in mobile wagering. Bettors in the state wagered more than $581 million in February alone, representing a 10% increase from the previous year.

North Carolina Sports Betting Online Surpasses $13 Billion Wagered

Bettors placed their first legal wager on March 11, 2024, launching an online market that has since generated just under $11.12 billion in mobile wagering. Eight legal operators serve the state, which adopted a mobile-first framework while retail sportsbooks remain limited to three tribal casino locations.

The operators have made nearly $1.19 billion in gross wagering revenue during the two-year period. In similar fashion, they have paid $9.85 billion in winnings off nearly $11.12 billion in paid wagers and free promotional bets. North Carolina operators won back $1.17 billion in gross revenue since the market went live[7].

The North Carolina State Lottery Commission regulates the market and oversees the licensed operators offering statewide online wagering. Operators face an 18% tax on gross gaming revenue, with proceeds allocated to the state’s General Fund, youth sports programs, and gambling addiction education and treatment initiatives.

The state closed its first full year among top U.S. markets. North Carolina posted 34.3% growth in its second full year of operations, benefiting from its large population base and strong sports culture.

Tax Revenue Reaches $262 Million for North Carolina

The state has collected more than $208.07 million in taxes from operators during the 24-month period, far exceeding legislative expectations. Operators paid approximately $8.34 million in taxes during February 2026 alone. The calculation is based on the 18% rate applied to gross wagering revenue, which represents betting revenue minus paid winnings.

First-year collections surpassed initial projections significantly. The state expected to collect $104.27 million in taxes from north carolina sports betting operations through March 10, 2025. Legislative researchers had projected tax revenues could reach $79.42 million annually within five years when the bill worked through the General Assembly in 2023. January 2026 delivered $11.48 million in tax revenue under the state’s fixed rate.

North Carolina distributes the tax revenue across multiple programs and entities:

• Department of Health and Human Services receives $1.59 million annually for gambling addiction treatment
• Two statewide youth sports organizations split $1.59 million annually for grants
• Athletic departments at 13 UNC System schools each receive $238,248.03 annually

The remaining tax dollars are divided among the state’s general fund (50%), the major events fund to attract sporting events (30%), and the same 13 UNC System athletic departments (20%).

February 2026 Shows Strong Year-Over-Year Growth

Wagering jumped 13.3% year-over-year in February, with north carolina sports betting online operators generating $473.40 million in bets. The North Carolina State Lottery Commission reported the eight online sportsbooks increased activity from $417.65 million in February 2025. Still, the month ended a five-month handle streak as operators just missed reaching another $476.50 million threshold.

The Winter Olympics helped boost betting activity during the month. Operators claimed $46.14 million in gross revenue, representing a 4.5% increase compared to the previous February. In reality, the hold fell from 10.2% in February 2025 to 9.7% in the latest reported month, contributing to slower revenue growth despite higher handle.

Promotional spending reached $11.44 million during the Super Bowl month, down $2.38 million from the previous year. Bettors won back $425.03 million of the total amount wagered. Subsequently, operators reported over $2.22 million in voided and canceled bets.

Tax collections totaled $8.26 million for February. The first two months of 2026 generated nearly $19.85 million in tax revenue for the state. For the fiscal year running from July 2025 to February 2026, wagering revenue reached $4.05 billion with gross wagering revenue of $424.48 million.