North Carolina is readying for online sports betting and it was announced what operators will pay to do business in the Tar Heel state. The North Carolina Lottery Commission will be charging $1 million every five years for a license.
That is less than what neighboring Tennessee charges. Tennessee legalized online-only sports betting in 2019 and launched its first sites in late 2020. Operators in Tennessee must pay an annual fee of $750,000, meaning over the course of five years an online sports betting license costs $3.75 million to maintain.
Virginia is less than North Carolina. They legalized both online and retail sports betting in 2020 and launched in early 2021. There, an interactive online sports licensing fee costs $250,000 and is good for three years, after which operators can renew for an additional three-year term for $200,000. Operators do have to pay an additional $50,000 for a background check.
Despite the announcement, online sports betting has not launched yet in North Carolina. The North Carolina Lottery Commission has from Jan. 8, 2024 to June 14, 2024 to launch.
There will be 12 sports wagering licenses available. Two of the state’s Native American tribes are eligible for licenses. They currently have retail sports betting. That does not count against the 12 licenses.
The tribes will be exempt from the licensing fee, but all others must pay $1 million. The license is good for five years and can be renewed for an additional five years for another $1 million.
North Carolina is still under many states that offer online sports betting. Pennsylvania charges $10 million for the first year and then $250,000 after that. New York has a one-time fee of $25 million.
Once the sites launch, the state will then begin receiving an 18 percent tax on gross gaming wagers.
