The North Carolina Senate recently moved Senate Bill 688 to the House Commerce Committee; assignment to the Judiciary 1, Finance and Rules and Operations committees are expected to follow. The bill would allow North Carolinians to bet on professional and collegiate sports through selected wagering operators. Observers said work on the bill, which languished for four months before it was fast-tracked through the Senate, likely will extend to the 2022 legislative session.
Primary sponsors of SB668 are state Senators Jim Perry and Paul Lowe. During the Senate floor debate, Perry said, “Prohibition doesn’t work. We know the activity takes place today whether we like it or not. We can’t ignore that fact. It’s just not something regulated and taxed by the state.”
He added, “If the universe of competition for the Carolina Panthers, Charlotte Hornets and Carolina Hurricanes is sporting teams in all 50 states, not having the ability to earn income from this would by definition put them at a competitive disadvantage as compared with teams in other states.”
Perry said officials of professional sports teams have mentioned those concerns. He said, “They told us ‘They didn’t need a restrictor plate put on them by a restrictive state government to keep them to compete freely with the other organizations.’”
Political analysts projected the bill will face stiffer opposition from House members, many of whom do not support expanded gambling. State Rep. Pricey Harrison said, “There is a healthy bipartisan group of House members who are opposed to gambling, including me. I don’t see how the bill moves through the House this year. It’s a big change for North Carolina, and it needs thorough vetting and deliberation.”
State Rep. Lee Zachary said there already are enough gambling options in the state. “There’s a Catawba Indian casino in our future. There’s plenty of gambling opportunities through the N.C. Lottery. Practically all the folks I talk with feel we just don’t need any more gambling,” he said.
Lowe and Perry said legal sports wagering potentially could generate $25 million to $50 million in annual tax revenue for school construction. Under SB688, the N.C. Education Lottery Commission would oversee sports betting and 10 to 12 sports wagering operators would be allowed to accept bets. Each operator would be required to pay a $500,000 licensing fee, good for up to five years. Renewal fees would be $100,000 for interactive sports wagering licenses, $10,000 for a service provider license and $5,000 for a sports wagering supplier license. The commission would collect an 8 percent tax on monthly adjusted gross revenue, with half directed to state’s Major Events, Games and Attractions Fund.
Lowe said he views SB688 as “a revenue bill. If we can get more resources for our state, then maybe there is the possibility that more towns can do better by education.”
