North Carolina’s sports betting industry recorded a gross wagering revenue of $66.8 million in September, marking the highest total in eight months. However, this figure fell short when compared to the $70.1 million earned in September of the previous year, despite a notable increase in player expenditure.
The revenue drop this September signifies a 4.7% decrease from last year’s performance, although it exhibited a substantial 23.5% rise over the $54.1 million generated in August 2025, as reported by the North Carolina State Lottery Commission. This follows a positive trend with August being the start of recovery after a record-low performance in July.
When examining player activity, the paid wagering handle for September reached $654.1 million, showing a significant 21.5% increase compared to the previous year. This handle also surpassed August 2025’s figure of $463.8 million by an impressive 41%. Including $32 million in promotional wagers brought the total handle to $686.1 million, which was 19.2% higher than September 2024 and 43.3% above August 2025.
The state’s hold for the month, based on the total handle, registered at 9.74%. This hold percentage reflects the portion of total wagers that the operators retained as revenue after paying out winnings, illustrating an important aspect of the business model.
In terms of tax revenue, the state accrued approximately $12 million from sports betting, slightly trailing last year’s $12.6 million yet exceeding August’s collections of $9.7 million. This performance highlights the fluctuating nature of tax revenue, which can be impacted by both betting activity and the efficiency of tax collection processes.
The financial dynamics of North Carolina’s sports betting market are influenced by several operators including FanDuel, DraftKings, Fanatics, ESPN Bet, Bet365, and BetMGM. These companies have been active since the state’s legal online sports betting market was inaugurated in March 2024, contributing to the competitive landscape.
Despite an impressive increase in player spending, September’s revenue figures reveal underlying challenges within the market. One possible explanation is the increased promotional activities that could have affected net revenue. Operators often ramp up promotional spending to attract new customers and retain existing ones, which might inflate handle figures but compress revenue margins.
The market context suggests that while high promotional spending benefits short-term engagement and player acquisition, its impact on profitability and revenue sustainability can be less predictable. “It’s clear that while players are wagering more, operators are also giving back a lot in bonuses, which impacts the bottom line,” an industry insider might reason, noting the balancing act between attracting customers and maintaining financial health.
On a broader scale, the sports betting industry continues to evolve with varying performance metrics month to month. The September performance, while showing growth in player engagement, also indicates that achieving consistent revenue growth remains a complex challenge. Some may argue that the market needs to mature further, with operators finding the right mix of promotional offerings and sustainable revenue generation.
Conversely, others could point out that the current trends are a healthy sign of a maturing market. With increased competition among operators and sophisticated consumer engagement strategies, the industry is likely testing the waters to find optimal operational strategies that will support long-term growth and profitability.
As the market develops, stakeholders will need to focus on innovation in marketing strategies while ensuring regulatory compliance and financial prudence. The complex dynamics of North Carolina’s sports betting scene suggest that future performance will likely hinge on how well operators can balance promotional investments with the pursuit of revenue growth.
In conclusion, the sports betting revenue in North Carolina reflects a dynamic interplay between aggressive market strategies and the quest for stable financial returns. While the increase in player spending paints an optimistic picture for engagement, the pressure on revenue underscores the need for strategic foresight in navigating the competitive and regulatory landscapes.