After much anticipation and several years of delays, online sports betting has become legal in North Carolina with the passage of House Bill 347. The bill received significant support in the house, garnering a vote of 37-11. North Carolina Governor Roy Cooper signed HB 347 into law on June 14, 2023.
Despite the public fanfare, many North Carolina residents wonder how mobile sports betting will impact their lives and whether or not this is a positive move for the state. Action Network has taken a deep dive into the North Carolina legislation to address some pressing questions and concerns surrounding mobile sports betting in the Tar Heel State.
When Will Online Sports Betting Be Legal in North Carolina?
First things first. Legal online sports betting in North Carolina will go into law on January 8, 2024. While the law may be in effect starting in January, that does not necessarily mean that sportsbooks will be fully up and running by then. Sportsbooks will have until June 14, 2024, to launch in the North Carolina market. State regulators are in the process of finalizing the betting rules and licensing procedures, which will ultimately dictate the official launch date.
Benefits of Legalizing Sports Betting to North Carolina
Historically, sports betting has carried a stigma throughout the United States. It was not until 2018 that the Supreme Court struck down a federal ban on sports betting. Since then, 35 states, plus Washington, D.C., have legalized sports betting in some fashion. Of those states, 26 (and DC) are operational with mobile sports betting, while three more (including North Carolina) are set to come online in the near future. So clearly, there has to be significant benefits of sports betting if more than half the states have embraced it so emphatically. The same promises to hold true for North Carolina.
State Tax Dollars
The most obvious benefit, and the one most frequently talked about in relation to legalizing sports betting, is the tax dollars. Every state collects a significant amount of tax revenue from sports betting wagers. North Carolina will be no exception. According to the North Carolina Lottery, the state will collect an 18% tax on gross wagering revenues for sports betting (minus the player winnings). 18% tax revenue seems like a pretty arbitrary number, right? Well, let’s put it into perspective. Analysis done by Spectrum Gaming Group predicts that North Carolina could receive roughly $508.8 million in tax revenue by the fifth year of legalization. But where does all of this tax money go? Directly to North Carolina communities!
Youth Sports
HB 347 has included a $1 million annual contribution to North Carolina Amateur Sports from sports betting tax revenue. This income is earmarked for expanding youth sports leagues, facilities, and so on to provide additional opportunities for children to get involved in sports throughout the state.
North Carolina Outdoor Heritage Advisory Council
A second mandatory $1 million annual contribution has been designated for the N.C. Outdoor Heritage Advisory Council. The money for this group will be allocated to teams or groups across various North Carolina counties in the form of grants to help offset the costs of sports-related travel. In addition, this money can also be used (up to $25,000) to attract sporting events to the state for further revenue-generating opportunities.
Collegiate Athletics
Thirteen universities will directly benefit from sports betting tax revenue. These schools are eligible to receive up to $300,000 annually, which will go towards their athletic departments. The schools that were selected to receive these funds are:
- Appalachian State University
- East Carolina University
- Elizabeth City State University
- Fayetteville State University
- N.C. Agricultural & Technical State University
- N.C. Central University
- University of North Carolina at Asheville
- University of North Carolina at Charlotte
- University of North Carolina at Greensboro
- University of North Carolina at Pembroke
- University of North Carolina at Wilmington
- Western Carolina University
- Winston-Salem State University
North Carolina Department of Health and Human Services
Sports betting is not completely void of risk. With that in mind, HB 347 has included an annual $2 million provision to the Department of Health and Human Services for gambling addiction services and treatment programs. The goal of these programs is to ensure that members of the North Carolina community are able to enjoy sports betting responsibly and to prevent problem gambling.
Remaining Allocations
The annual tax revenue allotment across various state agencies is just a baseline of the money expenditures to be distributed. Experts predict that the total tax revenue will far exceed those annual allotments, and as such, the state has developed a plan to distribute the remaining tax dollars in the following manner:
- 20% to be distributed amongst the 13 state universities selected
- 30% to a newly created North Carolina Major Events, Games, and Attractions Fund
- 50% to the North Carolina General Fund
North Carolina Jobs
Not only will the communities of North Carolina benefit from the tax income associated with sports betting, but the new industry promises to bring an influx of job opportunities as well. WCNC Charlotte has reported that eight locations will be given the opportunity to operate retail sportsbooks on-premise, including:
- Bank of America Stadium
- Spectrum Center
- Charlotte Motor Speedway
- Quail Hollow Country Club
- North Wilkesboro Speedway
- PNC Arena
- WakeMed Soccer Park
- Sedgefield Country Club
Naturally, each of these sportsbook locations will need to be staffed accordingly. These, plus other jobs associated with the North Carolina Major Events, Games, and Attractions Fund, and so on will bring about several new jobs throughout the state.
Standards and Regulations
Governor Cooper made one thing clear when signing House Bill 347 into law: Sports betting is already taking place in North Carolina despite not currently being legal. Residents are finding ways to place bets with offshore books and other unreliable parties. The legalization of mobile sports betting in North Carolina will establish the necessary standards to largely eliminate issues associated with illegal books. Sports betting will become much safer in the state as sportsbooks will be bound to a set of rules that are meant to look after the well-being of players.
North Carolina Responsible Gambling
Responsible gambling is at the heart of North Carolina’s legislation to allow mobile sports betting. Governor Cooper made a point to say the following in the bill signing ceremony, “This legislation allows the state of North Carolina to regulate it [sports betting] and to put safeguards on it, as well as to provide funding for helping people with problem gambling.”
Acknowledging the potential risks associated with legal sports betting has been a key factor in the success of similar initiatives throughout other states. North Carolina has come prepared with resources to mitigate problem gambling from occurring, as well as to have services readily available to help those who need them. Today, players suffering from issues related to problem gambling can seek help through the National Council on Problem Gambling. In addition, the North Carolina Problem Gambling Program also offers the following ways to speak to a trained clinician experienced in problem gambling:
- Call 877-718-5543
- Text “morethanagamenc” to 53342
- Chat at morethanagame.nc.gov
Responsible gambling initiatives don’t just fall to the state, however. A condition of being allowed to launch and operate in North Carolina requires sportsbooks to provide certain safeguards as well.
North Carolina Sportsbook Safe Betting Requirements
North Carolina has mandated that any sportsbook that operates in the state must meet a minimum threshold of responsible betting practices. The goal is to ensure that every effort is made to reduce the potential for problem gambling behaviors. These are the requirements laid out in HB 347 for sportsbooks:
- Voluntary exclusion programs that allow bettors to essentially lock themselves out of the betting platform for a period of time. Users are not able to place bets of any kind during the self-exclusion period.
- Pari-mutuel exclusion for any bettor who has placed themselves in the voluntary exclusion program. This means that bettors cannot be part of any joint (mutual) bets with other parties.
- Age verification is required at the time of registration. North Carolina residents must be 21+ to participate in online sports betting.
- Responsible gambling training information must be provided to employees by sports operator license applicants.
- Marketing and advertising restrictions are in place that require marketing campaigns to include information about gambling addiction and prevention or provide related links. In addition, content cannot target residents under the age of 21 or provide misleading information.
Action Network shares the principle as North Carolina that sports betting should be a form of entertainment to enhance games. Sports betting should never put users at risk of financial or emotional distress. Learn more about our stance on responsible gaming and take advantage of the resources available if you, or someone you know, is struggling with problem gambling.
Prepare for the North Carolina Launch with Action Network
Sports betting in North Carolina is right around the corner. Action Network will continue tracking updates and sportsbook announcements. Be sure to check our North Carolina sports betting page regularly for news about a finalized launch date and sportsbook new user offers!