North Carolina Governor Roy Cooper on June 14 signed House Bill 347 into law to legalize new forms of gambling in the state.
The bipartisan legislation would authorize and regulate online betting on professional, college, and amateur sports and horse racing in North Carolina. The state’s first online sportsbooks are expected to be launched in the first half of 2024.
“This legislation will help North Carolina compete, make sure taxpayers get a share, create many good-paying jobs, and promote strong economic opportunity,” said Governor Roy Cooper. “As we move forward, we must work to ensure that more revenue is used to invest in our public schools, teachers, and students.”
Currently, North Carolina only has retail sports betting in tribal casinos. The new law makes the state 28th in the nation for online sports betting, with eight other states having only retail betting.
North Carolina’s bill comes at a time when sports betting has never been more popular in the US Nationally, Americans bet a record $31.11 billion on sports in the first quarter of 2023, bringing it to an all-time high. of $2.79 billion in quarterly revenue (+70.1% yoy over the year), according to American Toy Association figures. Compared to the first quarter of 2022, growth was largely driven by new market launches in Kansas, Massachusetts and Ohio. North Carolina will help keep the momentum going.
According to state analysis, North Carolina could be a relatively large market for the sports betting industry. The country analyzed information about sports betting performance in other states to estimate the total potential betting revenue (GWR) of online betting, adjusting for differences in personal disposable income and adult population in each state.
The bill also authorizes sports facilities and certain associated and nearby properties to accept sports bets. The financial research used information about the estimated number of such facilities, increasing the potential GWR in small quantity. Countries with online and retail sports betting have seen over 90% of the handle come online.
Financial research has assumed that total bets from online and in-person bookmakers will grow from about $3.9 billion in the first full year of operation to $6.6 billion in the third year of operation. This value has been adjusted in subsequent years to take into account expected income and population growth.
On average, sports betting operators are expected to pay around 91% of the total amount received as bets as winnings.
North Carolina will tax online sports betting at 18%.
Governor Cooper was joined by representatives from professional sports organizations, including the Charlotte Hornets, Carolina Panthers, Carolina Hurricanes and Charlotte Football Club, NASCAR and the PGA a trip. Many of the state legislators who helped advance the legislation were also present when Cooper signed the bill.
House Bill 347 mandates that the North Carolina State Lottery Commission regulate sports betting and will be responsible for issuing licenses and collecting any license application fees. The licenses will be valid for five years, and the types of licenses include interactive sports betting licenses, service provider licenses, and sports betting supplier licenses.
The legislation would create two ways to place a sports bet – in person at a “public residence” or as a registered player via an interactive account.
The Interactive Sports Betting Operator will be responsible for ensuring the identity and age of anyone attempting to place a bet. To place a bet, a person must be at least 21 years old.
Up to 12 online sports betting licensees are permitted to accept bets on professional sports, collegiate sports, e-sports, amateur sports, or any other event approved by the commission.
The new law will send state tax revenue from online sports betting to the Department of Health and Human Services for gambling addiction education and treatment programs. In addition, tax proceeds will go toward promoting amateur sports in North Carolina, the state’s 13 public universities, the Major Events Fund to help bring sporting events and festivals to the state, the North Carolina Outdoor Heritage Advisory Council, and the State General Council. finance.
