North Carolina Assembly Passes Online Sports Betting Bill, Governor Set to Sign It

The House’s sign-off settles the debate over expanding sports betting in the Tar Heel State and means mobile wagering could begin as early as January.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne ? Senior News Analyst
Jun 7, 2023 ? 15:03 ET ? 4 min read
NC Gov. Roy Cooper
Photo By - USA TODAY Sports

North Carolina residents could be legally wagering with online sports betting sites as early as January after lawmakers gave their final blessing on Wednesday to legislation that expands authorized gambling opportunities in the Tar Heel State.

The North Carolina House of Representatives voted 68-45 to concur with changes made to a legal sports betting bill by the state’s Senate. The legislation will now head to the desk of Gov. Roy Cooper, a supporter of legalizing online sports gambling in his state.

The House’s sign-off settles the debate over expanding sports betting in the Tar Heel State. A previous attempt to authorize online sportsbooks via the legislature failed in the House by a narrow margin last year, which might explain why lawmakers decided to start in the House this time around. 

That there is still opposition to the expansion of North Carolina sports betting was evident on Wednesday, as several lawmakers voiced their concerns. 

“I'm against this bill because gambling is a predatory industry,” Rep. Abe Jones said during the final, relatively brief debate. “Ultimately… the only entity that really gains won't be North Carolina, it won't be the guys that go have fun gambling, it'll be the gambling industry.” 

Plenty of demand

As evidenced by the vote, though, more representatives were in favor of getting mobile wagering going in the state than there were not. Wednesday’s approval also puts North Carolina in line to become the 28th state to legalize online sports gambling. Moreover, its sizable population makes it very likely that the biggest names in the online gaming industry will be interested in setting up shop there, as the number of new markets in the U.S. continues to dwindle. 

GeoComply Solutions Inc., a technology company that helps online sportsbooks determine the location of customers, said its data shows there were more than 1.5 million attempts from within North Carolina to access legal betting apps in other states since the start of the year. 

“While our technology did not permit these individuals to bet, the interest is undeniable,” said John Pappas, senior vice president of government and public affairs at GeoComply, in a statement. “It is also undisputed that regulation will give adult bettors in North Carolina safe and accountable options to wager and the state an important new revenue stream.” 

Digging into the details

The legislation approved Wednesday, House Bill 347, will broaden North Carolina sports betting beyond in-person wagering at three tribal casinos in the state, allowing up to 12 mobile operators to obtain licenses and accept wagers. H.B. 347 would also enable live and simulcast pari-mutuel wagering on horse races in the state. 

Residents will have to be 21 or older and physically located in the state to use its online sportsbooks, which won’t go live until at least January 8, 2024. When they do, players will have access to wagering on professional, college, and amateur sports, with no restrictions on North Carolina schools, which was previously a sticking point in the state legislature. 

The North Carolina State Lottery Commission will oversee legal sports betting in the state, and bookmakers will pay a $1-million fee for their five-year licenses and an 18% "privilege" tax on their gross revenue. 

Among other things, some proceeds from sports betting will go to a new "North Carolina Major Events, Games, and Attractions Fund," which, as its name suggests, will be used to attract major events to the state with grant money. Another $2 million would go annually to the state's Department of Health and Human Services for gambling-addiction programs, $1 million for youth sports grants, and $300,000 a year or more to several state colleges to help support their athletic programs.

How much money online sports betting will raise for North Carolina will take time to determine. Recent projections from the legislature's fiscal research division show tax revenue would go from approximately $64.6 million in the 2024-2025 fiscal year to $100.6 million for the 2027-2028 fiscal year.

“Fiscal Research assumed that total wagers from online and in-person betting would grow from approximately $3.9 billion in the first full year of operation to $6.6 billion in the third year of operation,” the analysis states. “On average, operators are expected to pay out over 91% of the total amount received as wagers as winnings.” 

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff¡¯s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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