North Carolina Budget May Include Four New Casinos

Lawmakers in North Carolina have proposed including three commercial casinos and one tribal casino in the state budget. The deal also would include allowing video lottery terminals in bars, restaurants, gas stations and convenience stores.

North Carolina Budget May Include Four New Casinos

As part of a deal to finalize the state budget, North Carolina lawmakers proposed allowing four new casinos. House Speaker Tim Moore named Anson, Nash and Rockingham counties as potential landing spots, with the fourth going to the southeastern part of the state under the oversight of the Lumbee Tribe.

The legislature will vote on the budget within the next few weeks. In a WRAL-TV interview, Moore said, “If the votes are there, the anticipation is casino expansion and video lottery would happen this year.”

He added, “It’s my understanding that there is more support for this proposal than there was for some of the sports betting,” which was legalized in June.

Moore said legislators from rural areas have expressed enthusiasm about casino expansion as a way to “spur the economy of the region.” He noted the three counties being considered for casinos have populations below 100,000; the smallest, Anson County, has about 22,000 residents. Moore said the most recent draft of the bill “would not require a referendum in the communities where the casinos could be located.” He said community leaders from those areas have been contacted and “the report back to me is that they support it.”

Rockingham County, population 91,200, represented by pro-casino gambling Senate Leader Phil Berger, is just 20 miles from Caesars Virginia, the temporary casino that opened recently in Virginia. NC Development Holdings, affiliated with Maryland-based casino developers Cordish Companies, has requested 200 acres of land be rezoned from residential/agricultural to commercial. NC Development Holdings has not specified the purpose of the request but observers speculate it would be for a casino.

WRAL-TV reportedly received a draft of the July 11 casino gambling bill, which indicated a single developer would build the three entertainment districts and the Lumbee Tribe would develop the fourth. According to the bill, the developer would be required to commit $1.5 billion of private money to building the casinos, with at least $500 million dedicated to each site. In addition, a developer must have 10 years’ experience in the commercial gaming industry and commit to creating a total of at least 5,250 jobs. In addition, casinos would pay a tax of 22.5 percent on gross gaming revenue.

The draft bill also requires a county to be located east of I-77, bordering I-95 or traversed by it. The county must have fewer than 100,000 residents and be “one of the 40 most economically depressed counties in the state.” In May, the Rocky Mount metro area in Nash County had the highest unemployment rate in North Carolina at 4.8 percent, compared to the statewide rate of 3.4 percent.

The Lumbee Tribe or an affiliate could run the fourth casino in one of 10 southeastern counties, even if the tribe does not receive full federal recognition, which the Bureau of Indian Affairs is considering.

State officials said developer proposals would be accepted for 60 days starting September 1. The state then would have another 60 days to choose a developer.

Officials in Rocky Mount in Nash County, one of the proposed casino host counties, have been preparing for the possibility of the budget deal passing. Cary Cox, chief of staff to Rocky Mount Mayor Sandy Roberson, said, “We do want to participate because this opportunity could change our city in so many great ways.”

North Carolina does not have a gaming commission in charge of regulating commercial casinos. Currently the Tribal Gaming Commission for the Eastern Band of Cherokee Indians and the Tribal Gaming Commission for the Catawba Indian Nation regulate the state’s three tribal casinos: Harrah’s Cherokee Casino Resort, Harrah’s Cherokee Valley River Casino & Hotel in Murphy and Catawba Two Kings Casino in Kings Mountain.

The North Carolina Lottery Commission will regulate the sports betting industry, expected to launch in the first half of 2024.