Sports Betting Legislation on the Move in North Carolina

It was only two months ago that sports betting legislation was passed by the North Carolina House of Representatives. It was immediately sent to the Senate for their consideration. After throwing in a couple of amendments, it looks like the Senate now has a sports betting bill that has moved swiftly through the Senate Commerce and Insurance Committee. It will now face scrutiny from the Senate Finance Committee.

In the eyes of wanna-be North Carolina sports bettors, this is very good news. Given the momentum that the Senate's bill seems to have, it appears legalized sports betting will soon become a reality in North Carolina. That's based on the assumption that NC Governor Roy Cooper will sign the bill, something he has indicated he will do.

As for the amendments that were made to the House's HB 347, they were put forth by Senator Jim Perry. His amendments covered raising the applicable tax rate to 18%, eliminating deductions for promotional credits, and the addition of parimutuel wagering on horses.

As an advocate for the Senate's bill, Senator Tim Moffitt addressed the press. In an effort to draw parallels to prohibition in the 1920s and 1930s, he stated:

"This is just recognizing that this practice exists, it has existed since the beginning of time, and it’s increasing with access to smartphones and technology. … At the end of the day, this really speaks to us catching up to where we are, recognizing it, regulating it, and then taxing it for public benefit."

Details Found in the Senate's Sports Betting Bill

Since the devil is always in the details, it's necessary to take a look at the Senate's version of sports betting legislation. The following information reflects the amendments put forth by Sen. Perry.

• The North Carolina State Lottery Commission (NCSLC) would be designated to oversee sports betting regulations
  
• The NCSLC would be authorized to issue up to 12 sports betting licenses to retail/mobile operators
  
• Retail sports betting facilities would be permitted in and around professional sports venues
  
• NC Tribes would be guaranteed sports betting licenses outside of the 12 already designated
  
• Mobile sports betting would not be permitted from Indian lands
  
• License fees would be set at $1m every five (5) years
  
• 5-year license fees for services providers and suppliers would be set at $50K and $30K, respectively
  
• Tax rate on sports betting gross revenue would be 18%
  
• 1% tax on total parimutuel wagers
  

Religious Opposition

While the bill was in the Senate Commerce and Insurance Committee, it received a thrashing from NC religious leaders. However, the committee was not deterred as they have been hearing the same arguments over the last few years. Setting aside the concerns of religious leaders, the bill moved quickly through the committee.

There should be updates from the Senate in the coming weeks. Should the Senate Finance Committee green-light the bill, it could be on the Senate floor for debate within the next week or two.

There is hope sports betting could launch in NC by the beginning of 2024.