North Carolina received a major boost to state coffers last month after the revenue rundown from March Madness was revealed.
The Tar-Heel state saw its sports betting revenue nearly double in March, rising 99% compared with the same month in 2025. It also generated nearly $14 million in tax revenue from sports wagering during the month. The stark increase in revenue coincided with early NCAA Tournament exits by Duke and North Carolina.
Seven online sportsbooks generated more than $700 million in wagers
The North Carolina State Lottery Commission said Wednesday that the state’s seven online sportsbooks handled $726.2 million in wagers in March, up 6% from a year earlier and the first month topping $700 million since November 2025.
Since sports betting was legalized in March 2024, it is generating hundreds of millions of dollars in tax revenue for North Carolina, with allocations spread across multiple priorities. The funding includes $300,000 for athletic departments at 13 UNC System schools, $2 million for youth sports organizations, and 50% directed to the state’s general fund.
The state Department of Health and Human Services receives an additional $2 million annually to support gambling addiction treatment.
While the betting figures were outstanding, the performance of the Tar Heels was not. They suffered a historic collapse on March 19, 2026, blowing a 19-point second-half lead to No. 11 seed VCU in an 82-78 overtime loss during the first round. Some analysts called their campaign a “colossal failure”.
Prediction market Kalshi reveals eye-watering numbers
Despite ongoing legal troubles with state governments, it’s also been a bumper month for the prediction market sector. Kalshi reported more than $1.8 billion in trading volume on March Madness, more than triple its activity during the 2024 presidential election. By comparison, state-regulated sportsbooks are estimated to have handled over $3 billion in wagers on the tournament, though the two figures are not directly comparable due to differing methodologies.
Legal Sports Report tracked Kalshi’s activity across all 134 men’s and women’s NCAA tournament games, including props and parlays. The men’s title game between UConn and Michigan generated $105.5 million in trading volume, a platform record for a basketball game, while the women’s tournament produced $177 million, including $16 million on the championship.
Live betting accounted for 73% of Kalshi’s total tournament volume, exceeding the estimated 55% to 60% share at traditional U.S. sportsbooks, according to Citizens. The figures underscore strong in-game engagement across both tournaments.
Kalshi’s data carries caveats, particularly for championship markets that function as season-long futures rather than single-game bets. The reported totals reflect only a portion of activity within specific timeframes, making comparisons to other events, including the Super Bowl, and to sportsbook handle difficult.
March marked a record month for Kalshi, with $13 billion in total trading volume, more than 25 times higher year over year. Sports accounted for 86% of activity, continuing rapid growth since the platform launched sports trading in January 2025 and surpassed $60 billion in cumulative volume.
Ohio seeks online sports betting restrictions
Meanwhile, three Ohio Republican lawmakers said Wednesday they plan to introduce legislation to eliminate online sports betting, a move that could cost the state more than $200 million in tax revenue used for education and problem gambling services. Reps. Riordan McClain, Gary Click and Johnathan Newman said concerns about addiction and sports integrity outweigh the financial benefits.
Speaking at the Ohio Statehouse, the lawmakers and supporters emphasized the societal risks of online wagering, including its addictive nature and the prevalence of betting-related advertising. McClain said he wants game outcomes determined “on the field of play, not by the gambling markets.”
The proposed Save Ohio Sports Act would not fully ban sports betting but would restrict it to in-person wagers at casinos with tighter limits. Lawmakers said the approach preserves some legal betting while adding consumer protections against what they described as predatory practices.
