North Carolina Senate Approves Sports Betting
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On Thursday morning, the North Carolina Senate passed Senate Bill 688 with a 26-19 vote. SB688 proposes the legalization of sports betting online, via mobile phone, and in-person at approved facilities that are close to sports venues. North Carolina is home to the Carolina Panthers, Charlotte Hornets, and Carolina Hurricanes, among others, and those teams could ultimately land sports betting partnerships with major operators as we have seen in other states. The state also plans to create the North Carolina Major Events, Games, and Attractions Fund to increase job opportunities and economic development.
SB688 Specifics
The proposed bill would see the North Carolina Lottery Commission handle regulation and the approval process of licenses. The bill proposes a tax rate of 8% on all gross gaming revenue (GGR) and allows for between ten and twelve state licenses for sports betting outlets. Those licenses would be valid for five years. In addition to the tax rate on GGR, sports betting providers would pay $500,000 for their initial license and an additional $100,000 in an annual renewal fee.
Bipartisan Support/Opposition
It’s always interesting to see how much of a bipartisan issue sports betting ends up being in the legislative branch, and North Carolina proved no different. In the initial vote on SB688 on Wednesday, 10 Republicans approved the bill and 16 voted against it while 16 Democrats voted yes and 5 voted no.
Senator Jim Perry (R) was the main proponent of SB688 and spoke about how the bill would help “support education” through taxes. He discussed how this is an attempt to raise revenue to help less affluent counties without raising their property taxes. Perry also described how “prohibition doesn’t work” and gambling activity “takes place today, whether we like it or not.”
Senator Paul Lowe (D) backed up Perry by saying he sees this as “a revenue bill” and the state “already [has] gambling” so North Carolina may as well profit off the activity. Senator Jim Burgin (R) voiced his concern that the bill “produces very little money, and it targets young people.”
Problem Gaming Addressed
Other voters were concerned about potential issues stemming from problem gaming. John Rustin of the North Carolina Family Policy Council stated “SB688 will result in tens of thousands more of our state citizens and their families being victimized by gambling addiction.” An amendment approved by the Senate would require the lottery commission to transfer $1 million to the North Carolina Department of Health and Human Services to fund gambling addiction problems.
Financial Impacts
Fiscal analysts have estimated North Carolina should see revenue from sports betting in the range of $8-24 million annually. License holders would be taxed 8% on their GGR. 50% of the tax revenue would be sent to the newly created Major Events, Games, and Attractions Fund while the other 50% would go to the general fund. 58% of the general fund goes toward education.
Next Steps
Now that SB688 has been passed in the North Carolina Senate, the House will need to pass the bill as well. Once both chambers of the legislative branch have approved the bill, it will pass it onto the Department of the Interior for final approval. At that point, the North Carolina Lottery Commission would begin reviewing license applications. The legislative process for sports betting is still in its early stages, but this is an exciting first step for North Carolinians.
