NC Senate OKs legalized sports betting

State senators gave final approval Thursday to a proposal that would allow betting on sports online, via mobile phone and in person at approved facilities in the immediate area of major sporting events. Following the 26-19 vote, the measure moves to the House.

The U.S. Supreme Court ruled in 2018 that states had the right to legalize sports gambling. Since then, online betting sites have proliferated, and more than 20 states have legalized it.

In North Carolina, the state Education Lottery Commission would regulate the betting industry, and the state would receive money from an 8 percent cut of the proceeds and by charging for no more than 12 licenses for online sports betting outlets, as well as additional tribal licenses.

Online gambling outlets would have to pay $500,000 for their initial license and then $100,000 annually to renew. The state would also require licenses and fees from vendors that supply licensed gambling operations.

The money would go to the state's general fund “to support education,” according to sponsor Sen. Jim Perry, R-Lenoir.

Perry acknowledged the difficulty of persuading many lawmakers to support the idea. He said it’s an attempt to help raise revenue to help less-affluent rural counties construct more schools without having to raise property taxes on their fewer and fewer residents.

“Prohibition doesn't work,” Perry told the Senate. “We know that activity takes place today, whether we like it or not.”

"I look at this as more of a voluntary tax," he added. "They're already spending – choosing to spend their money that way – and I believe I owe it to the people I represent to try to find alternative means to meet the needs of the community."

“I see this as a revenue bill,” agreed co-sponsor Sen. Paul Lowe, D-Forsyth. “Somebody said, ‘Well, it's gambling.’ Well, we already have gambling. We’ve got the lottery. It's here.”

The bill would also create a new fund to help attract major sporting events to the state.

Sen. Jim Burgin, R-Harnett, was the lone speaker against the measure on the Senate floor.

“This bill produces very little money, and it targets young people, and I plan to vote against it,” he said.

John Rustin, president of the North Carolina Family Policy Council, said he thinks legalized betting is a big mistake.

"Our children, our adults, our overall population will just be overcome with advertisements and promotions that are pushing, pushing, pushing gambling on our citizenry, and we just don't believe that's a good idea," Rustin said after the Senate vote.

The vote Wednesday broke Senate President Pro Tem Phil Berger’s longstanding precedent of allowing floor votes only on bills that a majority of his 28-member caucus supports.

Fifteen Republicans voted against the bill in the final vote, while nine, including Berger, R-Rockingham, voted in favor of it. The other four were absent.

Four Democrats voted no on the bill, while 17 voted yes.

"A good majority of folks were in favor of it. It's something that's been talked about for a while, and I felt like it was important for us to go ahead and allow the chamber to work its will," Berger said.

Rustin was surprised by the vote, but he said there’s a lot of money and a lot of power behind the bill.

"I don't call into question the integrity of any of our legislators, but there are significant interests at hand here," he said.