Push for sports betting in NC moves ahead in Senate

A yearslong legislative effort to legalize mobile sports betting in North Carolina could be nearing the finish line.

Two Senate committees Tuesday will hear the current version of House Bill 347, which would allow adults in the state to bet on college, professional and other sports on their phone or other electronic devices.

The Senate’s finance committee is scheduled to meet at 1 p.m. and the rules committee, typically the last stop before a bill reaches the floor, expects to consider the legislation at its 2:30 p.m. meeting. The bill could be voted on by the full Senate on Wednesday and Thursday.

Additional amendments are expected to the bill, which has been modified in some significant ways since it passed the House in late March.

Despite the changes, which include the raising of the tax rate (from 14% to 18%), the elimination of deductions for promotional credits and the allowing of in-person cash betting at certain sports venues around the state, the House’s chief sponsor is optimistic that his chamber will sign off on the legislation.

“The Senate has had a thoughtful process and have been good partners in seeing this legislation through,” Rep. Jason Saine told WRAL. “I think their good faith efforts are greatly appreciated by sponsors and supporters of the bill in the House.”

The bill does not go into effect until January to allow time for the Lottery Commission to vet applications, award licenses and set up other regulations.

Historical horse racing, a type of slot machine that relies on the outcomes of previous horse races to determine the outcome, was added to the bill as a type of allowable betting last week. It is expected to be stripped from the bill over concerns about slot machines.

Another change that is being contemplated by the Senate: A provision that would put anyone who owes child support or owes the state money on a list of prohibited gamblers that operators must check before creating accounts.

The legislation would allow for no more than 12 licensed operators to take bets in the state. Each license would cost $1 million for a five-year period.

The bill says that the Lottery Commission shall consider the applicant’s plan to operate a place of public accomodation or in-person sports book, a change from the House-passed version.

The places of public accomodation are limited to certain sports venues across the state, so operators that partner with teams could have an edge in acquiring the limited licenses.

PNC Arena in Raleigh and WakeMed Soccer Park in Cary are among the venues that would be allowed to have an in-person sports book. Certain golf courses, racetracks and other major professional sports venues, such as Bank of America Stadium in Charlotte, would also be able to have a sports book.

Teams and venues pushed for similar changes before the legislative session, arguing that in-state businesses, like themselves, should reap greater rewards than out-of-state operators.

“You’re going to have a mix of who is going to get those licenses from the operators and the teams,” said Sen. Tim Moffitt, a Republican who is carrying the legislation in the Senate. “They’re part of the market. Excluding them was never really contemplated, but making it clear that they could participate was intentional.”

A 2018 U.S. Supreme Court decision allowed states to craft their own laws around sports gambling. North Carolina allows sports gambling at three tribal casinos.

The Senate passed a bill to legalize mobile sports gambling in 2021, but the House, after significant changes, failed to pass the bill by a single vote in 2022.

Where the money goes?

The bill allocates money from license fees and taxes to several different areas after the Department of Revenue and Lottery Commission receive money for expenses.

• $2 million annually for Department of Health and Human Services for gambling addiction education and treatment programs
• .$1 million annually to the North Carolina Division of Parks and Recreation for grants to local governments to expand opportunities for youth sports participation. No county can receive more than 1% of the total funding.
• $300,000 to the athletic departments at Appalachian State, East Carolina, Elizabeth City State, Fayetteville State, North Carolina A&T, North Carolina Central, UNC-Asheville, UNC-Charlotte, UNC-Greensboro, UNC-Pembroke, UNC-Wilmington, Western Carolina and Winston-Salem State.
• $1 million to the North Carolina Heritage Advisory Council for grants to assist youth teams travel to events or attract events to North Carolina
• Of the remaining proceeds: 20% to the athletic departments at the above colleges and universities; 30% to the North Carolina Major Events, Games and Attractions Fund; 50% to the state’s General Fund. The Major Events, Games and Attractions Fund would provide grants to draw entertainment, musical, political, sporting or theatrical events, held no more than once a year, to the state’s sports facilities and venues.