North Carolina Sports Betting Update: SB 688 Moving Forward
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North Carolina is moving towards a statewide launch of legalized mobile sports betting with new legislation in the works, which is exciting for resident sports fans. Following the landmark US Supreme Court decision in 2018 to strike down a federal ban on sports betting, at least 20 states have legalized sports gambling in some form. North Carolina followed suit with limited retail sports betting and is working on further developments for large-scale sports betting offerings.
On Monday, North Carolina moved forward with Senate Bill 688 in hopes of legalizing statewide mobile sports betting soon. A survey published by New East Carolina University showed 54% of North Carolinians support legal sports betting. In comparison, a poll in the state showed that 70% of the 18-44 age demographic support sports betting. North Carolina legislation should allow for mobile sports betting to be launched sometime before the end of 2021.
North Carolina Sports Betting History
In July 2020, North Carolina made the first significant step towards full-scale legalized sports betting. It approved limited retail sports betting at two tribal casinos owned by the Eastern Band of Cherokees. These two casinos are Harrah’s Cherokee Casino Resort in Cherokee, North Carolina, and Harrah’s Cherokee Valley River in Murphy, North Carolina. Both casinos began taking sports bets on March 18, 2021.
In April 2021, Senators Jim Perry and Paul Lowe introduced SB 688. However, it stalled for a long time in the Senate as COVID-19 hampered this summer’s entire legislative process. Additionally, a late amendment to SB 154 almost limited North Carolina betting by prohibiting sports betting on collegiate events, but that did not ultimately pass. In August 2021, SB 688 finally started to receive consideration in the Senate.
SB 688 Specifics
North Carolina’s SB 688 will implement an 8% tax rate on sports betting. Tax revenue would be split between the North Carolina Major Events, Games, Attractions Fund, and the general fund. The events fund would use the revenue to attract major events such as March Madness, golf tournaments, concerts, and political conventions to the state. The new fund would be beneficial to promoting major sports, music, and entertainment ventures in North Carolina.
Current legislation would allow for up to a dozen digital platforms in the state and some kiosks at certain sports facilities, although there would be no brick-and-mortar sportsbooks. In addition, SB 688 would authorize wagering on pro, college, amateur, and eSports. Players would need to be 21 years of age or older. Interestingly, North Carolina would become the second state after Wyoming to allow bettors to fund their accounts with cryptocurrency.
Next Steps
Now that the Senate has passed SB 688, it will go to the Committee on Commerce and Insurance. SB 688 will require sports betting operators to pay a $500,000 license and application fee, good for five years. After the fifth year, providers must pay an additional $100,000 per year in renewal fees. SB 688 would give the North Carolina Lottery Commission, the gaming regulator, 60 days to approve licenses.
Sponsors of SB 688 have said the launch of mobile sports betting could mean $25-50 million in economic benefits for North Carolina. However, there are notable social costs, such as the potential for problematic gambling addictions. If passed this year, SB 688 could become effective as soon as October 1.
