A bill to legalize and tax sports gambling in North Carolina started its legislative journey Wednesday, clearing a key state Senate committee.
Senate Bill 688 would allow 10 to 12 licensed sports wagering businesses in the state offering on-site betting at or near sporting facilities, as well as online gambling. They'd pay $500,000 for an initial license and, as the bill is written now, an 8 percent tax on transactions.
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That tax rate is likely to increase as the bill moves through the legislative process, sponsoring Sen. Jim Perry, R-Lenoir, said Wednesday. A key budget writer, Sen. Ralph Hise, R-Mitchell, promised an amendment that would keep the General Assembly holding those purse strings.
Perry's bill initially pushed half of the tax revenue into a fund controlled by the state Department of Commerce and meant to attract major events, like a Super Bowl or a golf tournament.
“I’m not really ready to take away the decision making of the General Assembly," said Hise.
Perry said he'd like to see language requiring at least some revenue to go toward education, along the lines of the state lottery. That's not in the bill yet, though it may be added as the measure works its way through three more Senate committees and, eventually, to the House.
Success isn't guaranteed, but the fact leadership allowed the measure to move forward augurs well for its chances. Wednesday's Senate Finance committee vote was a divided one, but the voice vote made it difficult to get an actual count.
North Carolina Senate rules specifically forbid taking roll call votes in committee, which empowers committee chairs to simply decide whether a bill has enough support to move on.
The $500,000 sports wagering licenses would have to be renewed annually at a cost of $100,000. Subcontractors who work with the licensees, providing equipment or data, for example, would have to pay $25,000 for an initial license, with $10,000 annual renewals. Each level of licensee would have to pass background checks run by the state.
Sen. Joyce Waddell, D-Mecklenburg, said the structure prices out the common man.
"This is for a rich man," she said in committee.
Perry said the state wants "operators who have been there and done that" and know how to keep online betting transactions secure.
"This is very sophisticated," he said. "It’s pretty big league."
Christian activist groups argued against the bill in committee, telling lawmakers to weigh the tens of millions of dollars in new state revenue promised by regulating the industry against the moral, social and other economic costs.
"What is the value of a human life?" asked John Rustin, president of the North Carolina Family Policy Council. "What is the value of a marriage? What is the value of an intact family?”
Rev. Mark Creech, executive director of the Christian Action League of North Carolina, said betting is "parasitic" and "diverts people from useful labor."
"Nothing of value is produced or created," Creech said. "There’s only a redistribution of currency on an inequitable basis. ... So while our eyes may bulge with dollar signs … we are slowly but surely sawing off the limb on which we sit."
Perry said gambling is already in North Carolina. People can go to a computer now and place bets with offshore sites or stay closer to home with an underground bookie.
"Any time you force something out into the bright light of sunshine, I think you have an opportunity to provide help for people if there's a problem (with addiction)," Perry said after the meeting. "But, also, if I put my money in an online bank account that is offshore somewhere, I don't know that I'm going to get paid. ... But I do know when you have transparency of a state run agency ... it provides greater security."