The North Carolina Senate Finance committee and the Senate Rules and Operations committee both approved House Bill 347 during brief committee meetings on Tuesday. If passed by the full Senate this week, the bill would regulate online/mobile and retail sports betting at locations in the state.
At the request of the state’s Lottery Commission, if passed, the effective date of the bill is Jan. 8, 2024, which will be followed by sports betting going live in the state soon after.
“Sports betting would not be authorized in the state until a date identified by the commission, which would be no later than 12 months after the act becomes law,” said Nicholas Giddings, a staff attorney with North Carolina General Assembly Legislative Analysis Division.
Sen. Timothy Moffitt (R-48) told the Finance Committee there will be four licenses related to sports wagering in North Carolina.
There will be 12 interactive sports wagering licenses available to sports betting operators at a cost of $1 million each. All applicants will be investigated before a license is awarded.
“If for some reason the applicant is denied their license, then the Lottery Commission would return 95% of those funds back to the applicant and retain 5% as part to offset their cost of determining whether or not they can be licensed in our state under these guidelines,” Moffitt told the committee on Tuesday.
Additional licenses include a $50,000 service provider license, a $30,0000 sports wagering supplier license, and a $20,000 advance deposit wagering license.
Since 2018, over 35 states, including the District of Columbia, have adopted some version of a sports wagering practice.
“Betting on sports in our state is occurring,” Moffitt told the Senate Commerce and Insurance committee last week. “But in order for us to regulate it, in order for us to tax it and provide a public benefit from those taxes, we have to authorize it first. So, this is not legalizing it in as much as it’s taking place. This is just recognizing that this practice exists.”
One topic that has met high debate in other states launching sports betting has been the decision to allow bettors to use credit cards to fund their accounts. Moffitt told the Finance committee on Tuesday credit cards will be allowed.
“They can be funded with cash at a place of public accommodation,” Moffitt said. “They can use foreign currency and coin, personal checks and drafts, digital crypto, and virtual currencies, online and mobile payment systems that support online money transfers, credit and debit cards, prepaid access cards, and any form of cash equivalent approved by the commission.”
The newly amended HB 347 bill now shows an increased tax rate of 18% on sports betting operators’ gross wagering revenue. The original bill stated a 14% tax rate.
According to a Fiscal Analysis Memorandum issued Tuesday by the state, FY 2023-2024 estimates show total sports wagering tax and fee revenue set at $22.1 million, increasing to $100.6 million by FY 2027-28.
