The prospect of legalizing sports betting in North Carolina is on the horizon, with expectations pointing towards 2024 thanks to the state Senate’s recent approval of the bill that legalizes internet-based gambling on professional and collegiate sports, horse racing and other sports. Added to this, physical casinos at specific retail venues will also be able to accept sports bets.
The Linkage of Eight Licenses to Brick-and-Mortar Venues
The second reading in the North Carolina Senate saw House Bill 347 passed, with just another official Senate vote pending before it’s returned to the House for assessment of Senate amendments. Anticipations are high, as the bill made it through the House floor late March.
Following House endorsement, the next stage for the bill is on the desk of Gov. Roy Cooper for signed validation. However, this is not anticipated to pose any obstruction, given the governor’s prominent backing throughout the process. It’s worth noting that there was a mix of support and critique of the proposal from representatives of both leading political parties.
The bill proposes that the Lottery Commission be granted scope to issue a top number of 12 mobile sports wagering licenses. Additionally, eight of those will be directly linked to retail locations where in-person sports wagering will be permitted, restricting only four licenses exclusively for mobile betting operators unaffiliated with an in-state partner.
Eight physical sportsbook outlets will be partnering with a lone mobile betting service provider include notable venues such as PNC Arena in Raleigh, WakeMed Soccer Park in Cary, Charlotte’s Bank of America Stadium and Spectrum Center, Charlotte Motor Speedway, and North Wilkesboro Speedway, along with the Sedgefield Country Club and Quail Hollow Country Club.
There have been appeals by professional sports clubs and sporting facilities to be included in the stake, arguing that they should derive the most benefit from the legalization of sports betting, rather than providers located out-of-state.
Tax Rates, Predictions, and Tax Spending Considerations
If translated into law, the bill proposes an 18% tax on all gross gaming revenues, and this tax base will not be decreased by operator expenses for bonuses or promotional activities to draw customers in new markets. The state’s estimates indicate that total bets are likely to exceed $6.6 billion by the time legal betting reaches its third year, generating a hefty $100 million in tax revenue.
Revenue generated through sports betting taxes will go towards education and treatment programs for gambling addiction, local governments or nonprofit organizations dedicated to the promotion of youth and amateur sports, and for athletic departments spread across the state’s universities. Furthermore, funds will be allocated to offer grants to attract entertainment, musical, political, sporting, and theatrical events to state-owned venues.
Although the bill outlines the initial effective date as January 8, 2024, the start date may be adjusted as it permits the Lottery Commission to fix the start date no later than 12 months after the bill is officially law.
