Push for sports betting in NC moves ahead in Senate

Sports bettors in North Carolina have waited years for lawmakers to legalize widespread sports wagering. That wait could soon be over.

But a new wait is just beginning.

The state Senate is expected to vote Wednesday and Thursday on the current version of House Bill 347, which would allow adults in North Carolina to bet on college, professional and other sports on their phone or other electronic devices and authorize the creation of eight in-person sports books at venues across the state.

Two Senate committees passed the legislation Tuesday but made additional changes, including giving the Lottery Commission authority to push back the start date from Jan. 8, the effective date for the legislation.

"Sports wagering shall not be authorized in the State until a date identified by the Commission, which shall occur as soon as practicable and may be no later than twelve months after the date this act becomes law," the legislation reads.

If the Senate, as expected, moves the bill this week, it must still pass the House and be signed by Gov. Roy Cooper before becoming law. That could push the start date into mid-June 2024.

"I'm conflicted," said Sen. Tim Moffitt, a Henderson County Republican who is leading the bill through the Senate. "Everything we do takes from some, gives to others, provides more liberty or provides more restrictions on what people can do.

"When faced with sports wagering in our state, in order for us to have a voice, in order for us to have an opportunity to manage something that is occurring with a tremendous amount of frequency, then we must authorize it first, so we can regulate it."

Senate leader Phil Berger, R-Rockingham, said Tuesday that he expects the bill to pass with support from a majority of GOP lawmakers in the chamber.

The Senate has modified the legislation significantly since it passed the House in late March.

Despite the changes, which include the raising of the tax rate from 14% to 18%, the elimination of deductions for promotional credits and the allowing of in-person cash betting at certain sports venues around the state, the House's chief sponsor is optimistic that his chamber will sign off on the legislation.

"The Senate has had a thoughtful process and have been good partners in seeing this legislation through," Rep. Jason Saine told WRAL. "I think their good-faith efforts are greatly appreciated by sponsors and supporters of the bill in the House."

Moffitt credited House sponsors for "working with Senate improvements to the bill."

The push to legalize sports wagering comes as the GOP-controlled legislature is debating the legalization of medical marijuana, considering other gambling measures and has already passed Medicaid expansion, all nearly unthinkable policy choices a few years ago.

The Senate's No. 2 Republican voted against the measure in the rules committee, but he conceded that supporters have the votes to pass the bill in the Senate, likely easily.

"I don't feel good in the direction we're moving in the state in relation to gambling issues and others," said Sen. Ralph Hise, a Mitchell County Republican and opponent of the legislation. "Once we've opened the door to it coming in, it's all going to be there."

The state is expected to generate about $10 million in the first year of legalization and $100.6 million by the fifth year, according to a fiscal analysis of the bill.

The state's budget is roughly $30 billion.

"House Bill 347 would enact impose a massive expansion of legalized gambling on North Carolinians as it would legalize state-sanctioned sports gambling on every computer, tablet and mobile phone in the state," said John Ruston, president of the North Carolina Family Policy Council. "And for what? The fiscal note on this bill suggests that the net state impact in four years would equate 1/10th of 1% of our current state budget."

Changes to the bill

Historical horse racing, a type of slot machine that relies on the outcomes of previous horse races to determine the outcome, was added to the bill as a type of allowable betting last week. It was stripped from the bill Tuesday over concerns about slot machines.

A provision to close a facility's sports book eight hours before and during a college game was also removed Tuesday.

The legislation would allow for no more than 12 licensed operators to take bets in the state. Each license would cost $1 million for a five-year period.

The bill says that the Lottery Commission shall consider the applicant's plan to operate a place of public accomodation or in-person sports book, a change from the House-passed version.

The so-called places of public accomodation, or in-person sports books, are limited to certain sports venues across the state, so operators that partner with teams could have an edge in acquiring the limited licenses. The latest amendment clarifies that the information on the application about in-state partnerships and jobs is "informational in nature and intended to provide additional insight regarding applicants who intend to operate a place of public accommodation."

Eight facilities across the state could operate a sports book under the current bill: PNC Arena in Raleigh, WakeMed Soccer Park in Cary, Bank of America Stadium and Spectrum Center in Charlotte, Charlotte Motor Speedway, North Wilkesboro Speedway, Sedgefield Country Club and Quail Hollow Country Club. Each venue would be allowed to partner with one mobile operator, which could leave at least four licenses for operators without in-state partners.

Teams and venues pushed for similar changes before the legislative session, arguing that in-state businesses, like themselves, should reap greater rewards than out-of-state operators.

A 2018 U.S. Supreme Court decision allowed states to craft their own laws around sports gambling. North Carolina allows sports gambling at three tribal casinos. The Senate passed a bill to legalize mobile sports gambling in 2021, but the House, after significant changes, failed to pass the bill by a single vote in 2022.

Where the money goes?

The bill allocates money from license fees and taxes to several different areas after the Department of Revenue and Lottery Commission receive money for expenses.

• $2 million annually for Department of Health and Human Services for gambling addiction education and treatment programs
• $1 million annually to the North Carolina Amateur Sports for grants to local governments or non-profit organizations to expand opportunities for youth sports participation. Organizations in a single county can receive no more than 1% of the total funding.
• $300,000 to the athletic departments at Appalachian State, East Carolina, Elizabeth City State, Fayetteville State, North Carolina A&T, North Carolina Central, UNC-Asheville, UNC-Charlotte, UNC-Greensboro, UNC-Pembroke, UNC-Wilmington, Western Carolina and Winston-Salem State.
• $1 million to the North Carolina Heritage Advisory Council for grants to assist youth teams travel to events or attract events to North Carolina.
• Of the remaining proceeds: 20% to the athletic departments at the above colleges and universities; 30% to the North Carolina Major Events, Games and Attractions Fund; 50% to the state's General Fund. The Major Events, Games and Attractions Fund would provide grants to draw entertainment, musical, political, sporting or theatrical events, held no more than once a year, to the state's sports facilities and venues.