Illegal gambling is a multi-billion dollar enterprise in the United States. Thanks to a 2018 United States Supreme Court ruling, many states are bringing gambling out of the shadows and into the mainstream. Since that ruling, more than two dozen states have approved some form of sports betting as another revenue stream for state coffers.
In 2019, North Carolina lawmakers approved sports gambling, however it’s only allowed now at the Cherokee Indian casinos in the western part of the state. "It really is a historic moment," says Brian Saunooke, the regional vice president of marketing for Harrah’s Cherokee Casino. When this year’s NCAA men’s basketball tournament tipped off, the tribe quietly opened the first legal sports book inside of North Carolina’s borders.
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Saunooke says the sports book is not only groundbreaking for our state, but compared to others in the U.S., "The book at Harrah’s Cherokee is really one of the premier sports betting venues across the country." With massive, ultra high definition screens, comfy chairs, betting windows and kiosks, the book will try to compete with Las Vegas and Atlantic City, all from the mountains of western North Carolina.
However, Harrah’s may soon have competition inside North Carolina. WRAL Investigates obtained a series of reports commissioned by the North Carolina Education Lottery to examine the revenue impact of gambling in North Carolina and not just sports betting.
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"Get it out of the shadows and the back alley and get it into the light of the sun," says Matt Roob of Spectrum Gaming. He worked on the report that offered up revenue projections for state-run sports betting, video poker and even casinos.
Roob’s report says sports betting alone would generate a lot of money for the state within first couple of years. "We think there’s about $360 million," he told WRAL Investigates.
Lawmakers now have that report as they decide what North Carolina’s next step should be. And there are plenty of logistics to work out. What type of betting should be offered? Who’s going to run the games? Where will the money go? To truly cash in, lawmakers need to act fast as states surrounding North Carolina are ahead of us in the race for sports gambling dollars.
The Spectrum report assumes the state opens up sports betting terminals in convenience stores and sports bars. Spectrum estimated as many as 5,000 machines across the state within five years. In the first year alone, Spectrum estimated 114 terminals in Wake County, 25 in Durham, 19 in Cumberland, 16 in Johnston and 13 in Orange County.
While the terminals provide entertainment in different venues, Roob says the key to cashing in on sports betting is the use of mobile phones. When asked about a drop in revenue without the digital element, Roob says it would be "huge."
And that’s the catch for lawmakers. While North Carolina law clears the way for sports gambling in the state, it’s still illegal online and on mobile devices. Roob says lawmakers will need to make a change if revenue is the goal.
"Does the state legislature want that? Do you want everyone having a sports book in their pocket?" he asked.
For now, sources tell WRAL Investigates mobile sports betting has more support than terminals. Lawmakers are considering a plan to sell licenses to private companies to offer the online apps with state oversight. A bill is expected to be filed in the coming weeks.