NC Senate panel advances sports wagering bill with higher tax rate, other big changes
The House passed a sports wagering bill in late March. The Senate's proposal makes significant changes to the legislation.
Posted — UpdatedSports wagering operators would pay an 18% tax rate on gross wagering revenue and bettors could place in-person wagers at sporting venues under a Senate proposal for legalized mobile sports gambling that passed a committee Wednesday.
It contains numerous changes to the House version, many of them less friendly to operators. The crux of the bill remains the same: If it becomes law, it would allow betting on professional, college and other sports through apps on mobile devices for people located in North Carolina beginning Jan. 8.
"This is not legalizing it, in as much as it's taking place," said Sen. Tim Moffitt, a Henderson County Republican. "This is just recognizing that this practice exists, is going to exist, has existed since the beginning of time. It's increasing with access to smartphones and technology."
Sports betting is legal in North Carolina, but only in-person at three tribal casinos.
Moffitt said the Senate has been working with the House on changes and "from what we understand, they're supportive." Rep. Jason Saine, the lead sponsor of the legislation in the House, said the Senate "has been very good about keeping me in the loop."
"I'll wait to see what their final product is," said Saine, a Lincoln County Republican. "I know for them, just like us, they have a ways to go until they get it over the finish line."
Among the changes:
- A tax rate of 18% up from 14% in the House version. The Senate version does not allow operators to deduct promotions or credits, which would increase their tax liability. The House version allows operators to deduct promotions and credits, often used to attract new customers, for several years before they are phased out.
- Allow in-person sports betting at certain sports facilities with cash. The House version only allowed betting through mobile devices at those same "sports lounges." The change could attract bets from many casual fans, who don't want to download an app on their phone but would be willing to place a wager on the game they are attending. Bettors would have to show their ID to place wagers in person.
- Adds Charlotte, East Carolina and App State to the list of UNC System college athletic departments that would receive $300,000 annually plus 20% of proceeds from sports gambling after other payouts.
Several gambling critics spoke at the hearing, urging lawmakers not to vote for the proposal and add more state-sanctioned gambling in North Carolina.
"All the money in the world that we might gain from this bill, even whatever regulation it provides, can never replace the virtues that will be diminished because of its legalization," said Rev. Mark Creech, the executive director of the Christian Action League.
The venues that could allow in-person sports wagering are facilities that host a NASCAR national race or a professional golf tournament where more than 50,000 live spectators are anticipated to attend or are home to a team that competes in MLB, MLS, NBA, NFL, NHL or the NWSL.
Related Topics
• Credits
Copyright 2024 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.