Senate Set to Decide on Imminent North Carolina Bill Regarding Mobile Wagering
Mobile Sports Betting on the Verge of Expansion in North Carolina
After a successful launch of mobile sports betting on March 11, 2024, North Carolina is now poised for further expansion in the industry. The Senate is set to vote on a bill next week that could legalize mobile sports betting, including parimutuel wagering on horse racing, and potentially open up opportunities for historical horse racing and live horse racing if a track is built in the state [1][2].
The bill, HB 347, has already passed through the Senate Commerce and Insurance Committee with several amendments. Among the changes, the Senate version of the bill taxes the adjusted gross revenue of mobile operators at 18%, compared to the current rate of 18% [1]. If the bill becomes law, North Carolina would have up to 12 mobile operators, joining the ranks of states that have legalized mobile sports betting [2].
The discussions on the Senate floor could be extensive due to numerous amendments added this week. One of the topics that may generate debate is college sports wagering, following previous discussions in House committees. Recent controversies in the industry may further fuel debates on this issue [3].
Several amendments have been proposed regarding revenue allocation in both House and Senate committees this session. A portion of the tax revenue supports state-run programs such as the North Carolina Major Events, Games and Attractions Fund. This fund was used, for example, to contribute $2 million to attract the MLS All-Star Game to Charlotte in 2026, highlighting the role of sports betting revenue in supporting major sports and entertainment events [3].
If HB 347 survives Senate debates, it would need to return to the House for concurrence on changes like the horse-racing language and 18% tax rate. Gov. Roy Cooper, a proponent of mobile sports betting, is expected to sign the bill into law if both chambers can agree on language [4].
The projected timeline paves the way for North Carolina to legalize mobile sports wagering in June, with the suggested start date for mobile sports betting being Jan. 8, 2024, if the bill becomes law [5]. The state lottery, which would be North Carolina's sports betting regulator, would have approximately six months to hire staff, draft regulations, and award licenses [5].
It's important to note that North Carolina allows wagering on professional, college, and Olympic-style sports. The inclusion of college sports betting is permitted, which differentiates it from some other states that restrict betting on in-state college teams [1][3]. Additionally, online sports betting permits bets on a wide range of events, but the specific scope regarding horse racing betting is less clear from the available sources, and horse betting is typically regulated separately [1].
The state imposes an 18% tax on gross sportsbook revenue, which generated approximately $116.5 million in tax revenue during the first fiscal year of operation, with total bets placed reaching $6.6 billion [3]. There is a proposal under discussion to increase the sports betting tax rate from 18% to 36%, which would make North Carolina's tax rate the fourth highest in the U.S. [4].
In summary, mobile sports betting is fully legal and operational in North Carolina as of March 2024, with ongoing discussions about increasing tax rates and leveraging revenue for public and promotional purposes. There is no specific recent update indicating changes to college sports wagering rules or horse racing betting legalization beyond what is currently established [1][2][3][4].
[1] North Carolina Sports Betting
[2] North Carolina Sports Betting: What You Need to Know
[3] North Carolina Sports Betting Revenue Report
[4] Proposal to Increase North Carolina Sports Betting Tax Rate
[5] Timeline for North Carolina Mobile Sports Betting Legalization
- The Senate in North Carolina is planning to vote on a bill that could expand the scope of sports betting to include parimutuel wagering on horse racing, historical horse racing, and live horse racing if a track is built.
- Amendments to the bill, HB 347, include changes to the tax policy where the adjusted gross revenue of mobile operators would be taxed at 18%, a potential increase from the current rate.
- The bill's passage could see North Carolina join states that have legalized sports betting, with up to 12 mobile operators expected to operate.
- North Carolina has a policy in place that allows wagering on professional, college, and Olympic-style sports, including college sports, differentiating it from some other states. However, the specifics of horse racing betting are less clear from available sources.
