Sports wagering clears next-to-last vote in NC state legislature

The effort to legalize mobile sports gambling in North Carolina needs just one more vote by state lawmakers before heading to the governor for his signature.

The state House of Representatives agreed 67-42 to changes made by the state Senate to House Bill 347 on Tuesday afternoon. The House must vote to concur once again, scheduled Wednesday, the last step for lawmakers in a process that has stretched over years.

There was no debate on the measure Tuesday due to scheduling issues, but some debate is expected Wednesday, House Speaker Tim Moore said.

The House passed House Bill 347 in late March 64-45. The bill would allow betting on professional, college and other sports on phones or other electronic devices.

But the Senate made a number of changes to the legislation, including increasing the tax rate (to 18% from 14%), allowing in-person betting at sports books and adding horse racing to the sports that can be bet on.

Gov. Roy Cooper, a Democrat, has been in favor of legalization with certain parameters.

"I am generally in support, supportive of the sports-betting legislation, but we're continuing to look at it," Cooper told reporters Tuesday morning.

North Carolina currently allows betting on sports at three casinos located on tribal land. The legislation would allow for in-person sports books at eight sports venues across the state, including Raleigh's PNC Arena, Cary's WakeMed Soccer Park and the Charlotte home stadiums of the Panthers and Hornets.

Sports betting would begin in North Carolina no earlier than January 8 and no later than one year from when the bill becomes law. The N.C. Education Lottery Commission is responsible for the administration and regulation of the industry, a new responsibility.

"We're going to work as fast as we can to get it up and running," said Van Denton, communications director for the lottery.

Critics from both parties and outside faith-based groups have argued against the bill, saying the societal costs, including addiction, far outweigh the benefits of allowing more sports gambling in the state.

Supporters have pointed to additional tax revenue, the proliferation of legal gambling in neighboring states like Tennessee and Virginia and the freedom of adults to spend their entertainment dollars as they see fit as reasons for legalization in North Carolina.

A similar bill passed the Senate in 2021, but that measure failed in the House by a single vote last year.

More gambling

State lawmakers, including the top Republicans in the House and Senate, said there are ongoing conversations about allowing Vegas-style casinos in certain parts of North Carolina. Cooper said he has not seen any proposals and wants to know who would run the casinos and what the state's revenue cut would be.

"Those details would make a difference in what my decision would be on it," Cooper said.

Cooper referenced casinos on the North Carolina-Virginia border.

"Clearly we have surrounding state snow that are going to be pulling North Carolinians to them to invest their money," Cooper said. "So the state of North Carolina ought to make sure that we are competitive."

He said he doesn't want to see the revenue used to replace existing tax revenue lost to further tax cuts.

"When you cut taxes for the wealthiest among us and state eliminating corporate taxes, you're going to have a hole there that's going to be too big to fill by these gambling interests that we continue to talk about," Cooper said.

Lottery commission

The Lottery Commission is comprised of nine members, five appointed by Cooper, two by Moore and two by Senate leader Phil Berger.

It will be responsible for issuing licenses for interactive sports wagering, advance deposit wagering, service providers and sports wagering suppliers. It is also tasked with approving events that can be wagered on, issuing penalties for non-compliance with any regulations and creating a voluntary exclusion program for individuals who want to be excluded from betting. The Commission will receive a daily summary of all sports wagering activity from the operators.

Members of the commission or employees of the commission are prohibited from gambling on sports in the state.

The nine members do not receive a salary. They serve a five-year term and can serve two terms on the commission.

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 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.