An era of online sports betting is dawning in North Carolina as the State Lottery Commission opens the application process for operators and related service providers. In a significant advancement for the state’s gaming industry, those interested in conducting online sports betting activities or providing necessary support services can now submit their credentials for review.
This regulatory milestone follows Governor Roy Cooper’s signing of House Bill 347 in June, which formally sanctioned sports wagering. Although the eagerly awaited market has yet to announce its official start date, Commission chair Ripley Rand clarified that this largely hinges on the duration of the application process.
Rand emphasized the thorough nature of the review procedures, which include extensive background checks, detailed examination of internal control systems, and the need to scrutinize supporting application documents. To ensure due diligence, the Commission has up to 60 days to review each application, and operators are granted a 10-day window to address any requisites for amendments.
The establishment of the market also depends on the completion of the rulemaking process. In October, the Sports Betting Committee initiated this process and invited public commentary on the proposed regulations, with the window for feedback closing on November 1. Legislators have outlined a strict timeline for the finalization of these rules, aiming for completion by January 8 of the following year. The timeline for legalization is particularly symbolic, as the market is scheduled to launch one year to the date after the bill’s passage.
Chair Ripley Rand addressed public anticipation, stating, “We know the betting public is very interested in knowing the day that bets can be made in North Carolina. There are a number of factors in determining what that date will be and only then can we set a date. However, approving the application is a big step in moving the process forward.”
In the race against time, the Commission is hopeful that applications will be filed before December 27, and with a deadline set for June 2024, the foundation for legal sports betting within the state is rapidly solidifying.
Cari Boyce, leading the Commission’s Sports Betting Committee, assures that the impending sports betting market will be both “fair and responsible.” Despite uncertainties about the exact commencement date, there’s a palpable commitment to establishing a robust program well before the halfway mark of 2024. Boyce emphasizes the importance of getting the program’s launch right from the get-go to prevent future complications and promote sustainable betting practices.
The scope of betting, as laid out in House Bill 347, includes a broad range of sports such as collegiate competitions, esports, and other events authorized by the Commission. However, the first released rules in October included a controversial ban on pick’em-style daily fantasy sports (DFS) games.
Financially, the tax rate on each license holder’s gross gaming revenue is marked at 18%, a figure that was initially decreed as 14% but later adjusted with amendments in the Senate. Of the tax collected, $2 million annually is earmarked for the Department of Health and Human Services, intended for the funding of programs aimed at the education and treatment of gambling addiction.
A novel requirement also stipulates that operators must secure a written agreement with a local sports team, league, or venue to initiate sports betting, shaping partnerships that anchor betting activities in local sporting events and venues.
While the final version of the sports betting rules remains under deliberation, the framework laid by House Bill 347 and the progress of the Commission’s application and rulemaking processes are paving the way for a regulated and responsible betting environment in North Carolina.
