North Carolina May Take Up Online Sports Betting Bill This Session

• A North Carolina online sports betting bill approved by the Senate may be considered this session
• The bill would allow 10 to 12 online sports betting operators 
• The state legislative session will kick off on Wednesday, May 18

North Carolina online sports betting may become a reality this year if the House of Representatives decides to act on an already Senate-approved sports betting bill.

The state will kick off its legislative session on Wednesday, May 18, and a Senate approved online sports betting bill is waiting in the wings to be discussed by the North Carolina House of Representatives. Senate Bill 688, sponsored by Sen. Paul A. Lowe, Jr. (D-32), was approved by the Senate last year in August by a vote of 26-19.

Because the state legislative session runs for two years, the bill can still be considered when lawmakers convene this week. The session will run until June 30.

North Carolina Likely to Consider Online Sports Betting

North Carolina currently allows retail sports betting at its brick-and-mortar casinos. Two Caesars Sportsbooks opened in late 2021 at tribal casinos in the Western part of the state.

If approved by the House of Representatives, SB 688 would legalize online sports betting and allow between 10 to 12 online sports betting operators and set the online sports betting tax rate at 8%. In addition to casinos, the law includes language that would allow North Carolina professional sports facilities, race tracks, and PGA-event golf courses to offer online sports betting.

An online sports betting license would cost an applicant $500,000 if approved.

Online Sports Betting Financial Impact

In a published financial impact report of the bill, it’s anticipated that sports betting would generate between $1 million and $3 million annually per percentage point of tax on gross gaming revenue. During its first year of operation, sports betting revenue are anticipated between $2.6 million and $8 million to account for the time it takes to implement the new form of gaming in the state.

When online sports betting is fully operational in North Carolina, it’s anticipated to generate between $8 million to $24 million. According to the financial report, this would generate $3 million to $11 million for the North Carolina general fund, $4 million to $12 million for the North Carolina Major Events, Games, and Attractions Fund, and $1 million for problem gambling treatment and education.

The report states that online sports betting would not have a negative effect on sales of existing lottery products. License application fees and revenues paid to the Lottery Commission will cover the commission’s administrative and enforcement costs.