North Carolina experienced a record-breaking surge in sports betting activity during March 2025, thanks largely to the excitement around college basketball’s March Madness. According to data released by the North Carolina State Lottery Commission, a staggering $685 million was wagered during the month, marking the highest monthly total since online betting became legal in the state in March 2024.

This figure eclipsed the previous high of $659.3 million from March of the previous year, representing a 3.9% increase in handle. Of this total, $667 million was paid wagers—also a record—while promotional bets accounted for the remainder. The unprecedented level of engagement was largely driven by the NCAA men’s and women’s basketball tournaments, where top-ranked teams dominated the brackets and fueled strong betting interest.

Bettors Win Big, Revenue Tumbles

Despite the record-setting handle, sportsbooks in the state saw a significant dip in earnings, according to a report published by WRAL.com. Operators paid out $643.6 million in winnings—more than ever before—resulting in a gross revenue of just $38.1 million. This represents a dramatic 42.7% drop compared to the same month a year earlier and underscores the challenges sportsbooks faced in capitalizing on the uptick in betting activity.

The win rate for operators in March stood at just 5.6%, marking the lowest hold percentage since the launch of legal sports betting in the state. This figure was also half of the combined average from January and February, highlighting how March’s results were particularly unfavorable for sportsbooks.

Favorite Wins Take a Toll on Operators

A key factor behind the low revenue and win rates was the dominance of favorites throughout the postseason. In the men’s NCAA Tournament, all four No. 1 seeds advanced to the Final Four—a rare occurrence that heavily favored bettors backing the chalk. On the women’s side, three No. 1 seeds and a No. 2 seed reached the semifinals, once again delivering favorable outcomes for those betting on top-ranked teams.

Duke University, a prominent in-state team, further contributed to this trend by covering the spread in four of its first five postseason games, including a championship run in the ACC Tournament. Their strong performance likely contributed to the high number of winning moneyline parlays during March.

The Final Four appearance by all No. 1 seeds is only the second such instance in NCAA history, and it created a betting landscape where unexpected upsets were few and far between—limiting the ability of sportsbooks to profit off underdog losses.

State Tax Revenue Dips Despite Record Action

The record-breaking month didn’t translate into high tax revenue for North Carolina. The state imposes an 18% tax on gross wagering revenue, meaning that with just $38.1 million in gross profits, tax receipts totaled $6.8 million—among the lowest since legalization. In comparison, February’s tax intake reached $10 million, highlighting how the profitability of sportsbooks directly impacts state revenue collections.

This drop comes despite March’s handle rising 26% from the previous month and being the fifth time in six months that betting activity topped $600 million. The previous highest payout month occurred in December 2024, when winnings reached $590 million—substantially less than March’s total.

Though promotional spending in March 2025 climbed slightly to $17.9 million, it remained well below the all-time high of over $202 million in March 2024, when operators aggressively offered bonuses to attract new users during the platform’s inaugural month.

Since the introduction of legal online sports betting in North Carolina, over $6.7 billion in paid wagers have been placed, generating more than $135 million in state tax revenue. Monthly gross revenues have shown dramatic swings, ranging from highs of $105 million to lows of $33 million.