North Carolina Bill Proposed for Legalizing Sports Betting; Legislators Optimistic about Passage
North Carolina's sports betting revival kicked off during the recent "long session" of the General Assembly, a nearly eight-month legislative stretch held in odd-numbered years.
Sports betting in the state narrowly missed the mark last year, getting knocked down in the House of Representatives despite securing backing in the state Senate.
The fresh crop of 40 new legislators in 2023, consisting of 12 new Senators and 28 new representatives, have Republican leaders bullish on expanding gambling with sports betting.
As Senate President Pro Tempore Phil Berger (R-Rockingham) put it, "It's something that I believe has the support of both chambers." He added, "It's something the public overall supports. If you've got a phone, you already have access to it. You're not supposed to, but it's there."
Last year's criticisms of sports betting were primarily on moral grounds. But this year's supporters argue that legalizing sports gambling provides better consumer protection and eliminates underground bookies and illicit bookmaking networks.
Changing Tides
Republican leaders believe the lawmaking class of 2023 brings fresh, open minds that might have quickly dismissed ideas their predecessors shunned.
Historically, North Carolina has been strict on gambling, with no commercial casinos, pari-mutuel betting, racinos, iGaming, or sports betting. However, it does have three tribal casinos: Harrah's Cherokee Casino Resort, Harrah's Cherokee Valley River, and Catawba Two Kings Casino.
This week saw the introduction of House Bill 347 by Reps. Jason Saine (R-Lincoln), John Bell (R-Wayne), Zack Hawkins (D-Durham), and Ashton Wheeler Clemmons (D-Guilford). The bipartisan bill boasts 36 House cosponsors.
With 40 representatives backing the online sports betting bill, the proponents only need to find another 21 House lawmakers to pass the bill in the 120-member chamber.
"I think we're going to have success this year," said Hawkins. "This is the time."
HB347 proposes authorizing up to 12 online sportsbooks to apply for and receive sports wagering licenses once deemed suitable by the state. The proposed sports betting law mandates at least 10 interactive sports wagering licenses but not more than 12.
The bill permits betting on both professional and college sports. The sports wagering commission can grant additional approvals if deemed reasonable.
Along with the online sportsbooks, HB347 also allows the state's gaming tribes to operate retail sportsbooks within their casinos, but they can't offer online sports betting to individuals not physically located on their sovereign lands.
Bill Details
The current version of HB347 requires online sportsbooks to pay a one-time licensing fee of $1 million upon being deemed qualified to hold an operating permit. Renewals would cost the same - $1 million every five years.
Gross revenue from sportsbooks would be taxed at 14%. $2 million of this tax revenue would be earmarked annually for the North Carolina Department of Health and Human Services for gambling addiction education and treatment services, with another $1 million set aside for the North Carolina Division of Parks and Recreation for local grants for youth sports equipment and facilities upgrades.
As of now, HB347 hasn't been assigned to a House committee for initial consideration.
