North Carolina Sports Betting Bill Sent for Approval
After a lengthy three-year process, the highly anticipated North Carolina sports betting legislation has finally concluded. The House of Representatives voted 68-45 in favor of concurring with the Senate’s amendments to HB 347 on its third reading. This momentous decision marks the end of a tumultuous journey, which saw the legislation narrowly fail by a single vote in 2022.
Representative Jason Saine, the bill’s author, expressed his contentment with the outcome and acknowledged the crucial bipartisan support that significantly advanced the bill through the House. He credited Senators Tim Moffitt and Jim Perry for their dedicated efforts in ensuring the inclusion of horse wagering in the final version of the bill.
It is anticipated that Governor Roy Cooper will sign the bill. With this action, North Carolina will join Vermont and Kentucky as states that have successfully passed sports betting legislation this year. The governor will have a 12-day timeframe to sign the bill once it is placed on his desk.
The implementation of North Carolina sports betting is anticipated in early 2024.
Key provisions of the North Carolina sports betting bill include:
- The oversight of sports betting licensing and regulations will fall under the North Carolina Lottery Commission’s (NCLC) purview.
- Authorization will be granted to 14 online sportsbook operators, including two tribal online sportsbook partners.
- To obtain an online sports betting license, a payment of $1 million will be required every five years.
- A flat 18% tax will be imposed on gross gaming wagers without any deductions for promotional credits.
- The bill ensures that interactive sports betting licenses are reserved for the Eastern Band of Cherokee Indians and Catawba Indian Nation, both recognized as federally recognized North Carolina Indian tribes. These tribal licenses will not count towards the limit of 12 licenses awarded by the commission.
- Operators without tribal partnerships must employ geofencing technology to prevent wagers from being placed on Indian lands.
- Service providers must pay $50,000 for a five-year license, while suppliers will be charged $30,000.
- Advance-deposit wagering licensees must pay an initial $1 million application fee and an annual 1% tax on the total parimutuel wagers.
Representative Saine acknowledged the collaborative efforts of co-sponsors Ashton Clemmons, John Bell, and Zach Hawkins in the bill’s development.
As per the legislation, online sports wagering licensees are advised to form partnerships with sports teams and entities to provide in-person sportsbooks at or near professional sports venues. While the teams and venues will not be obligated to obtain licenses, these partnerships will be given weight during the application process for sports betting operators.
The bill identifies eight sports venues that have the potential to accommodate retail sportsbooks, including Bank of America Stadium, Spectrum Center, and PNC Arena.
The Long Road to North Carolina Sports Betting
The journey to pass North Carolina sports betting legislation spanned three years, commencing with the authorization of in-person sports betting at tribal casinos in 2019. The subsequent legislation to legalize statewide online sports betting was introduced in 2021 and initially passed the Senate but faced a setback in the House. However, the bill was reintroduced this year and gained significant momentum, leading to its successful passage in both chambers.
While opponents voiced their concerns regarding the potential negative impacts of sports betting, the bill received overwhelming support. A fiscal note estimates that state tax revenue from the state’s sports betting could reach $100 million annually once the market matures.
North Carolinians, who have already demonstrated their interest in legal sports betting, will soon have the opportunity to place bets within the state, eliminating the need to seek options in neighboring states.
Although the exact launch date for North Carolina sports betting is yet to be determined, it is expected to occur between January 8 and June 2024, following the governor’s signature.
