The North Carolina Education Lottery Commission recently voted to allow digital instant games online, starting November 15 at the latest.
Commissioners called the games digital scratch-off tickets. Virginia, Georgia and several other states sell digital instants or e-instants. North Carolina already sells tickets online for draw games, such as Mega Millions, Powerball, Pick 3 and Pick 4.
The North Carolina Lottery, introduced in 2005, has enjoyed increasing sales for 17 years but Executive Director Mark Michalko said sales could start to decline or flatten if new games aren’t added. In fiscal year 2022 the lottery generated $929 million for state education programs, according to state figures.
Michalko countered retailers’ claims that more online offerings may impact their sales with a presentation showing retail sales in states that offer digital instants had surpassed sales in states without digital instants.
Digital-instant play would be limited by the commission to $505 daily, $2,000 weekly and $4,000 monthly. According to commission forecasts, digital instants could generate more than $416 million in revenue in five years. Governor Roy Cooper included digital instant revenue in his proposed 2-year budget, with $81 million in revenue from the 2023-24 fiscal year which began in July, and $101 million in revenue in the 2024-25 fiscal year.
Some commissioners expressed concerns about the new games, including Commissioner Chris Hayes.
According to WRAL, he said, “We, as the commission, do not know what the landscape of gaming is going to be in North Carolina over the next year. There’s still a lot of proposals out there in the General Assembly. We could have more responsibility. We don’t know what the total handle is. We don’t know how many gamblers there are. Introducing new games now with an uneven landscape, I don’t think is the right move. I think we need to get a better understanding of what types of games are going to be authorized in North Carolina before we move forward.”
Earlier this year, lawmakers approved online sports betting, set to start sometime between early January and mid-June. The Lottery Commission will oversee those operations.
Legislators also are debating whether to allow at least three new “entertainment districts” including casinos, hotels and water parks, in Anson, Nash and Rockingham counties. The Lumbee Indian tribe also could be authorized to operate a casino in southeastern North Carolina, as reported by the News & Observer. The entertainment districts would be included in the state budget.
State Rep. Jarrod Lowery, a member of the Lumbee tribe, said the entertainment districts would bring much-needed economic development to rural areas. “It’s really going to turn some of our rural areas into tourist destinations,” he said.
Lumbee Tribal Chairman John Lowery (brother of Jarrod) said, “We are aware of the discussions about the entertainment districts at the state level. We understand that state lawmakers and the governor will have the final say over the state budget. We look forward to reviewing any economic opportunities that may be provided for the Lumbee Tribe once the budget is approved. We appreciate the continued support of our state leaders for the Lumbee Tribe.”
The Lumbee Tribe, based near Pembroke, does not have full federal recognition, an obstacle to operating a casino. However, John Lowery recently said he was confident that Congress would grant full federal recognition, which would give the tribe access to millions of dollars for education, health care and other services. North Carolina officially recognized the tribe in 1885 and Congress granted partial recognition in 1956.
The state legislature would not have the final say regarding the Lumbee casino; that would be up to a vote by the tribe’s 60,000 members, according to the tribal constitution.
The Eastern Band of Cherokee Indians and other North Carolina tribes have said the Lumbees do not have significant cultural identifiers, such as a shared language. The said the Department of the Interior, not the U.S. Congress, should decide whether the Lumbees should be fully recognized. The Eastern Band, the only fully recognized tribe in the state, opposed the Catawba Indian Tribe’s Two Kings Casino which opened in 2021 in Kings Mountain.
