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The average person can’t tell the difference between South and North Carolina. Hell, some people probably think the “Carolinas” is just one place.
But here’s the easiest tell between the two neighbors: North Carolina has sports betting, and South Carolina does not. The latter is one of 11 states in the country without a legal betting market.
But take one look at the news headlines coming out of North Carolina, and you have to think South Carolina is at least considering legalizing for 2026. Right? Well, let’s find out cause a lot is going on as of late.
North Carolina Is Doing Numbers With Sports Betting
Sports betting revenue has slowed down in the state of North Carolina. But that was to be expected, a few months removed from NFL betting. But May numbers are in, and we’re starting to see things pick back up.
The industry’s gross revenue jumped to $65.2 million in May — a 39 percent increase month-over-month against April. That figure came off a total handle of $562.2 million, including $14.4 million in promos. Even with slightly lower volume than April, operators held more — finishing with a strong 11.65 percent win rate.
That high hold translated into real money for North Carolina. With an 18 percent tax rate, May produced $11.7 million in tax revenue — the best month since January (NFL season) and the third-highest since launch more than a year ago. For context, March only brought in $6.8 million in tax revenue, despite setting the all-time handle record thanks to March Madness betting.
That $11.7 million number is the one to remember. That’s a taste of what South Carolina is losing out on. The state has half the population so it’s not a perfect 1-to-1 comparison. Still, you could guesstimate that South Carolina sports betting could eke out at least $5 million in tax revenues for a similar month.
That’s monthly, but what about yearly. Before we get to that, let’s remember: North Carolina has the newest sports betting market in the country, having launched in March 2024. So far? It’s been an astounding success.
Take the 2024-25 fiscal year, for example. The state has pulled in just under $106 million in tax revenues (and counting). And the year isn’t officially over until end of June! Imagine how much higher this number will get in the years that follow? It’s only going to get ingrained more with bettors, and more taxes are coming. Yes, more taxes, as we explain in the next section.
North Carolina Wants To Double Sports Bet Tax
As good as the new industry has treated North Carolina, lawmakers think it could be even better. There’s a new Senate budget proposal being floated that would double the tax rate on online sportsbooks from the current 18 percent to a whopping 36 percent.
That would instantly make North Carolina one of the most aggressive states in the country when it comes to taxing this industry. Only New York, New Hampshire, and Delaware would tax more. North Carolina would be tied with Pennsylvania, and just behind Illinois, where some books already pay 40 percent on a sliding scale.
To be fair, the logic isn’t completely wild. Sports betting has blown past expectations in year one. Lawmakers originally thought it would take five years to bring in $100 million in annual tax revenue. They crushed that mark in year one alone.
If the tax rate gets bumped up to 36 percent, the state expects to bring in an extra $53 million in 2025-26, and nearly $80 million the year after that. Some of that extra money would go straight to college sports programs in the UNC system (where Bill Belichick is coaching these days). Every eligible school would now get at least $500,000.
This move isn’t final yet, but it tells you one thing: the state sees a cash cow here, and they want to milk it for all it’s worth. It makes you wonder, does the state of South Carolina see that success and wants to replicate it themselves? We think so, but they’ll need to get out of their own way first.
Another Failed Attempt At Legalizing
South Carolina keeps tripping over itself. Every year, they float a new sports betting bill. Every year, it gets some traction. And every year, it goes nowhere.
This latest attempt — the Sports Wagering Act — is no different. On the surface, it looks solid. Bipartisan support. A fair tax rate. Public polling that showed 70 percent of voters were in favor of legalization. But none of that matters when the state’s top official refuses to play ball.
Governor Henry McMaster has been a brick wall. He’s repeatedly said gambling doesn’t fit South Carolina’s culture and doesn’t belong in the state. He hasn’t softened, either. So even if lawmakers pass a bill, McMaster is expected to veto it. And let’s be real — this legislature isn’t going to override him. Not in a state this red.
So here we are again. A bill with promise. A public that’s ready. But a government that won’t get out of its own way.
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