The North Carolina Senate Finance Committee recently approved legislation to license and tax sports betting statewide. The bill has bipartisan support. Its sponsor, state Senator Jim Perry, said, “We have sports betting today for those who want to bet. It’s just not something regulated and taxed by the state. I don’t want to put my head in the sand over that issue, but I also don’t want to belittle anyone who’s uncomfortable with it.”
Perry pointed out many residents already place sports bets from their computers or smartphones through out-of-state betting sites or through conventional bookies. He stated it just makes sense to regulate these activities to produce revenue for things like education. He also noted the Eastern Band of Cherokee Indians opened onsite betting operations at its two Harrah’s Cherokee casinos earlier this year.
Under Perry’s bill, operators could offer betting on college, professional and some amateur sports, including game outcomes and others not based on final scores. The North Carolina Education Lottery commission would issue up to 12 mobile sports wagering operator licenses, plus supplier licenses for those operators. The operators also could set up an in-person betting location within or near a professional sports arena, such as the Spectrum Center in Charlotte or on-site at an annual pro golf event.
The initial operator fee would be $500,000 and revenue would be taxed at 8 percent. Half of the net proceeds would go to a special fund to attract sporting events and attractions to the state; the balance would go to the state. The legislature’s fiscal staff estimated the combined annual total collected could be $8 million to $24 million. Perry said he thinks that amount actually would be higher, especially if lawmakers raise the tax rate.
The bill now must pass through three more Senate committees before it reaches the floor and possibly move on to the House. Observers said that won’t be an easy path with certain legislators still opposing gambling. None of the committee members spoke against the measure directly, however several questioned how financial benefits would outweigh societal costs.
North Carolina Family Policy Council President and Executive Director John Rustin told the committee the legislation “represents a massive proposed expansion of legalized gambling in North Carolina.” He said that could lead to more problem gamblers impacting families and society, adding the state’s well-known sports heritage would be tarnished. “Gambling, and not the games themselves, will become the centerpiece of sports competition in North Carolina,” he stated.
Perry said some Senate colleagues were convinced to support the bill after realizing how easy it is for anyone to place an online bet. However, he said even his own mother opposes the legislation. “I think there is healthy skepticism around the bill,” he said.
