North Carolina receives seven sports betting applications ahead of spring launch
The North Carolina Lottery Commission last week released a list of companies applying for retail and online sports betting privileges ahead of the agency’s “Proposed Filing” December 27 deadline.
Sports betting leaders DraftKings and FanDuel highlight the Group of Seven, which also includes BetMGM, ESPN Bet, Fanatics, bet365 and Underdog Sports. Last June, state lawmakers and Gov. Roy Cooper (D) legalized commercial sports betting.
The North Carolina Lottery Commission, which is responsible for licensing and regulating the state's newly expanded gaming industry, said it will take up to 90 days to review an online sports betting application and issue a license.
The law requires such betting to begin before June 15, 2024. However, Cooper is hopeful that sportsbooks will be able to start accepting bets on March Madness, the 2024 NCAA Division I men’s basketball tournament, in time.
North Carolina is home to arguably the biggest rivalries in college basketball, with their bitter rivals being the North Carolina Tar Heels and the Duke Blue Devils. The shows ranked No. 9 and No. 16 in the AP Top 25 poll. Blue Bloods is an almost permanent bracket entry.
Partner Match
North Carolina sports betting laws require sportsbooks to partner with a professional sports team, venue, or one of two qualified sports organizations (PGA Tour and NASCAR).
FanDuel is a PGA TOUR Partner. Fanatics' bid is in conjunction with the NHL's Carolina Hurricanes, while ESPN Bet is partnering with the Quail Hollow Club, the annual PGA Tour stop that hosts the Wells Fargo Championship. Bet365 is applying to the NBA Charlotte Hornets.
The remaining three applicants have not publicly disclosed their professional sports partners. Potential partners include the NFL's Carolina Panthers, the National Women's Soccer League's North Carolina Courage, Charlotte Motor Speedway and NASCAR.
If approved, sportsbooks would be allowed to offer in-person and online sports betting. Their retail stores are only allowed on the property of the host stadium or its partner organization.
Each sports betting license comes with a one-time fee of $1 million. An 18% tax is levied on gross sales. The state will use much of the tax break to support college athletics at state universities. Thirteen schools will receive up to $300,000 annually from gaming expansion:
Appalachian State University East Carolina University Elizabeth City State University Fayetteville State University North Carolina Agricultural and Technical State University North Carolina Central University University of North Carolina Asheville University of North Carolina at Charlotte University of North Carolina at Greensboro University of North Carolina at Pembroke University of North Carolina at Wilmington Western Carolina University Winston-Salem State University
In addition to its seven commercial sports betting offerings, Caesars Sportsbook is expected to apply to become a licensed service provider to operate online gambling on behalf of the Eastern Band of Cherokee Indians. Caesars operates the tribe's two casinos in North Carolina - Harrah's Cherokee Casino Resort and Harrah's Cherokee Valley River.
In order for the tribe to gain the right to online sports betting, Cooper would have to agree to an amendment to the state's Tier III Gaming Compact to allow such betting. The state is home to Kings Mountain's third tribal casino, the Catawba Two Kings Casino. The temporary casino is owned by the Catawba Indian Nation.
Can the weak keep up?
DraftKings and FanDuel dominate the U.S. sports betting landscape. It is estimated that they control up to 75% of the industry. Their control led to market consolidation last year, with many upstarts failing, including Fox Bet, WynnBet and MaximBet.
Underdog is a new daily fantasy sports and sports betting startup founded by Jeremy Levine, the co-founder of fantasy apps StarStreet and DRAFT, which were acquired by DraftKings and Paddy Power Betfair, respectively. Underdog recently received its first online sports betting license through the state of Ohio.
Underdog and other bidders in North Carolina believe 2024 could be the year that smaller sportsbooks start eating into the market share of DraftKings and FanDuel. ESPN Bet is Penn Entertainment's $1.5 billion bet on the industry after ESPN agreed to pay to integrate sports media brands into its sports betting operations.
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Source: www.casino.org
