A bill seeking to legalize mobile sports betting in North Carolina has successfully passed a crucial committee stage and is now headed to the state’s House of Representatives. House Bill 347, co-sponsored by representative Jason Saine and a bipartisan group of lawmakers, recently gained approval from the House Rules, Calendar, and Operations committee, marking significant progress for the proposed legislation.
Key Provisions of HB347:
The bill aims to introduce online sports wagering in North Carolina by January 1, 2024.
Up to twelve operators would have the opportunity to obtain renewable five-year licenses, each requiring a fee of $1 million.
Sports betting would encompass professional, college, electronic, and Olympic sports.
The North Carolina State Lottery Commission would be responsible for regulating and overseeing sports betting activities.
Presently, sports betting is solely permitted at tribal casinos within North Carolina.
Taxation and Allocation of Revenues:
HB347 sets a tax rate of 14 percent on sports betting revenue.
Approximately $2 million annually would be allocated to the Department of Health and Human Services for initiatives related to gambling education and treatment programs.
An additional $1 million would be designated for the North Carolina Division of Parks and Recreation, distributing grants of up to $10,000 to counties for youth sports equipment and facility enhancements.
The bill also outlines financial support for various universities, with annual allocations to their athletic departments.
Tax revenue would be divided among athletic departments, the North Carolina Major Events, Games, and Attractions Fund, and the state’s general fund.
Expected Revenue and Historical Context:
Representative Saine has estimated that the state could generate at least $50 million in annual revenue through legalized sports betting.
It’s worth noting that previous efforts to legalize sports betting in North Carolina fell short by a single vote in 2022.
The advancement of House Bill 347 signifies significant progress toward the potential legalization of mobile sports betting in North Carolina. The bill’s comprehensive provisions, including licensing, taxation, and revenue allocation, underscore the potential economic benefits and support for various programs and organizations within the state. As the legislation proceeds to the House floor, North Carolina is poised to join the growing list of states embracing the legal sports betting industry.