When it comes to preparations to open a state up to sports betting, North Carolina has concluded to stay in the slow but steady lane rather than rush the North Carolina Lottery Commission (NCLC) to get the job complete by January 8 in time for the college football championship game.
With licensing applications yet to be received and all the rules yet to be approved, legalized sports betting in North Carolina isn’t expected to begin in early January as the state’s new gambling laws permit. The commission has until June 15 to accept the first bets. If it takes that long, they will miss the Super Bowl and March Madness as well.
Commission members said that meeting the January date was “unworkable” in light of the remaining tasks still to come, WRAL-TV reported.
According to Sterl Carpenter, hired to lead the sports betting division, once applications are submitted, the sportsbook operators seeking a license need to be investigated for financial controls, security and responsible gambling plans. And a provision enacted last month says applicants need a formalized agreement with certain teams, leagues or sports venues in the state.
Carpenter acknowledged the tasks are not doable by January 8.
The committee met on November 14 and consented to a large contingent of events that could be bet on through the licensed operators, as well as changes to its first batch of rules. The full commission still needs to approve, the Associated Press reported.
The NCLC is still spelling out new rules in advance of the launch of sports betting. The second round of rules were released November 7.
The latest rules include a system to permit and outlaw certain wagers and wagerable sporting events on a case-by-case basis. Betting companies cannot add new types of bets without first going through an NCLC vetting process.
The restrictions could dictate if the NCLC excludes certain wagering types such as prop bets on NCAA games. The officials worry that college prop bets could lead to match-fixing.
“Sports competition,” reads the NCAA’s sports wagering news release, “should be appreciated for the inherent benefits related to participation of student-athletes, coaches and institutions in fair contests, not the amount of money wagered on the outcome of the competition.”
College prop team bets are legal in over 20 states. But a number of jurisdictions restrict this type of wagering, prohibiting betting on in-state college teams.
“A sports governing body or equivalent may submit to the director in writing a request to restrict, limit, or exclude a certain type, form, or category of sports wagering with respect to sporting events of the body, if the sports governing body or equivalent believes that the type, form, or category of sports wagering with respect to sporting events of the body may undermine the integrity or perceived integrity of the body of sporting events of the body.”
Rules establish the procedure for offering a new type of betting.
The sporting event or wager type being requested shall meet the following criteria before the request may be approved:
- The outcome may be verified;
- The outcome may be generated by a reliable and independent process;
- The Sporting Event generating the outcome is conducted in a manner that ensures sufficient Integrity Monitoring controls exist so that the outcome may be trusted;
- The outcome is not likely to be affected by a Sports Wager placed; and
- The Sporting Event is conducted in conformity with applicable laws
The NCLC will approve or reject the petition within fourteen days. The NCLC can also request that the operator conduct a trial to test the viability of the new wagering type or event. The commission could suspend activities under the proposed rules. If so, the operator must refund all the money wagered.
“The director may restrict, limit, or exclude wagering on a sporting event or wager type if the director determines that the restriction, limitation, or exclusion is required to ensure the integrity of the operator,” the guidelines read.
The director refers to Mark Michalko, the executive director of the NCLC.
Rules may be subject to public comment through November 27. Submit comments in person at a public hearing on November 20 or via an online form. The next round of rulemaking will likely begin in early December.
But mobile apps expect to be ready to go by mid-June.
“Thank you … for clarifying that this would not all be done by Jan. 8, otherwise we would be probably meeting daily instead of weekly to get all that done,” Commissioner Cari Boyce told Sports Handle.
Proposed rules also included language likely to prevent fantasy operators like Underdog Fantasy and PrizePicks from operating pick’em-style fantasy games. Language prohibited any fantasy game “based on proposition wagering or contests that involve, result in, or have the effect of mimicking proposition wagering or other forms of sports wagering.”
But pushback during public comment will likely remove the ban for the time being. The committee wanted to focus on sports betting regs than get involved with the legality of pick’em style games and whether they are legal.
“We want to take this time to focus on moving the rules forward, getting the operators licensed, … and have sports betting launched in a timely and efficient manner,” said Billy Traurig, the lottery’s chief legal officer.
The commission created a new website (ncgaming.gov) for information related to North Carolina sports betting rules and regulations.
