In a snowstorm of activity in the state Legislature, North Carolina is close to approving sports betting.
The Senate packed on amendments and cut one of them out as the bill got two full Senate votes in the affirmative. It needs one more vote. The North Carolina Senate Commerce and Insurance Committee pushed the sports betting bill off to the Finance Committee, according to Yogonet.
But the first of the amendments added some drama. The tax rate rose from 14 to 18 percent; the lawmakers removed promotional credit deductions from taxable gross gaming revenues; parimutuel horse race betting was included; in addition to live racing, the amendment allowed online betting, and gambling on historical horse racing (HHR) games. If the full Senate vote accepts these changes, will the House? As for horse racing, the state canceled the amendment just as it became part of the package.
HB 347 passed through the House 64-45 at the end of March. Horse racing was not part of the mix, and there is no indication the House would accept the amendment.
The bill will allow from 10 to 12 online sports betting operators and sportsbook lounges at NASCAR tracks, large golf courses and pro team arenas and stadiums for MLB, MLS, NBA, NFL, NHL, and NWSL. It also permits wagers on pro sports, college sports—with in-state schools—eSports, and the Olympics.
The launch date was set for January 8, 2024, in time for the Super Bowl if approved as-is. The North Carolina State Lottery Commission would regulate the system. Federally recognized North Carolina Indian tribes would be guaranteed a sports betting license.
On the other hand, athletes participating in sports eligible for wagering could not place a bet on that competition. The legislation also contains an exclusion program to prevent those dealing with gambling issues from betting.
Many of the opponents who shot down a similar bill in 2022 no longer serve as legislators, thus helping supporters. As a result, the chances are good for approval. Democratic Governor Roy Cooper supports such legislation, as does Republican Senate leader Phil Berger, so partisanship isn’t an issue.
A state Senate committee voted to make more changes to a bill that would legalize mobile North Carolina sports betting. However, the newest version of the bill removed one major obstacle toward reaching an agreement with proponents in the House, according to BetCarolina.
The Senate Finance Committee then approved, but not unanimously, an amended version of HB347. While most of the amendments made minor technical corrections to the bill, a provision that would have allowed HHR machines at horse racing tracks was removed.
HHR was in the version passed last week by the Senate Commerce Committee as part of the language that legalized horse racing and online parimutuel wagering accounts.
The committee’s amendment also gives the North Carolina State Lottery Commission more time and flexibility on launching sports betting. While the bill calls for sports betting rules to be established by January 8, 2024, the new amendment will give the commission up to 12 months after the law takes effect to roll out sports betting statewide.
Less than 90 minutes after the Senate Finance Committee approved the bill, the Senate Rules and Operations Committee followed suit. Then onto the Senate.
Prior to online considerations, North Carolina had in-person wagering at one of three casinos in western North Carolina. HB 347 would change that.
In its current format, operators would pay $1 million for a five-year license.
The Eastern Band of Cherokee Indians and the Catawba Nation of Indians would be allowed to partner with online operators, and those agreements would not count against the 12-license cap.
State Senator Tim Moffitt told the Rules Committee that representatives from the House and Senate have worked over the past eight days to refine the bill. Sports betting has been happening in North Carolina for years, with estimates indicating residents wagered $1.7 billion just in the last year.
“In order for us to have an opportunity to manage something that is occurring with a tremendous amount of frequency, then we must authorize it first so we can regulate it, and as a part of that regulatory construct, through taxation, we can create a public benefit that can also help us manage and influence something that’s occurring,” Moffitt said.
A fiscal note based on the current Senate version estimates the state would receive $11.8 million in tax revenue for fiscal year 2023-24. Tax revenue would go up to $76.4 million in the next fiscal year, the first full year of operations. By 2027-28, that’s expected to increase to $100.6 million in tax revenue by the 2027-28 fiscal year. That’s based on all 12 licenses being issued.
After expenses, North Carolina legislative analysts estimate legalized sports betting would have a net impact on state coffers of $10.1 million in 2023-24. In FY 2024-25 that impact would jump to $62.4 million and grow to $71.1 million by 2027-28.
Revenue from sports betting would fund problem gambling services in the state, a grant program for youth sporting activities, athletic departments at 13 North Carolina universities, a major events fund that would be created by the law and the state’s general fund.
If the final Senate version has any differences to the House version, then the House would either need to concur with the changes or both chambers would need to set up a conference committee to reach agreement on a final bill.
If a conference committee is needed, they would have until the end of the legislative season to hammer out their differences. The session is expected to end in the summer.
By a vote of 38-11, the bill passed a second reading May 31—meaning it will be read and voted on one more time in the Senate. If it passes, it will then head back to the House to be reviewed once again, WTVD reported.
HB 347 would allow bets on college, professional and other sports on your phone or other electronic devices. It would also authorize the creation of eight in-person sportsbooks at venues across the state.
A report from Spectrum Gaming Group predicts more than $500 million in revenue by the 3rd year. This would mean the state would take in nearly $92 million based on an 18 percent tax rate.
The money is expected to go towards smaller sports programs in the UNC system and problem gambling programs, according to .
“People love sports in this state. And so if Virginia is seeing $500 million a month being wagered there I think we can expect that that number will be exceeded in North Carolina once it gets up and running,” said Bill Squadron who is an assistant professor of sports management at Elon University.
