NC Sports Betting Launch Takes A Different Path

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North Carolina is set to launch legal online sports betting on March 11, 2024. There’s plenty of excitement around the launch, and bettors can currently pre-register for online sportsbook accounts.

As first reported on NCSharp, North Carolina officials decided on a different approach to online sports betting. Let’s break down the state’s new online sports betting rules:

North Carolina’s unique sports betting law

North Carolina Gov. Roy Cooper added a twist to the typical sports betting legislation. For sportsbook operators to obtain a license, they must tie themselves to a professional sports entity in the state. This represents a licensing framework different from that of any other state with online sports betting.

Rep. Jason Saine introduced House Bill 347 to legalize online sports betting in NC in March 2023. When the House approved the bill on March 28, the requirement to partner with a professional sports entity was not in the bill.

In the initial NC sports betting legislation, the state capped the number of sports betting licenses at 12. During the budget process, lawmakers amended the law. The amendment required sports betting licenses to partner with professional sports organizations. With this amendment in place, Cooper signed H347 into law on June 8, 2023.

Eleven organizations qualify for a sports betting license:

• Carolina Hurricanes
• Carolina Panthers
• Charlotte FC
• Charlotte Hornets
• NC Courage
• Charlotte Motor Speedway
• North Wilkesboro Speedway
• Sedgefield Country Club
• Quail Hollow Country Club
• NASCAR
• PGA Tour

This list is in addition to the three in-person sportsbooks at tribal casinos in North Carolina.

Despite the distinct nature of the in-state partner rules, North Carolina bettors will not notice a difference from other states’ online sports betting. Tar Heel State players can expect generous welcome bonuses, odds boosts and other betting options. The legal market will debut just in time for the ACC Tournament.

Why require sportsbooks to be tied to professional sports organizations?

According to the current law, any additional professional sports organizations that come to NC could add additional licensees and allow for more operators. This possibility could incentivize the expansion of pro sports in North Carolina.

Sara Tait, a partner in Ice Miller’s Government Affairs and Regulatory Law Group and former executive director of the Indian Gaming Commission, gave some additional context for the in-state partner rules.

“This is obviously a legislative decision, and it oftentimes depends on the present gaming landscape in the state,” Tait told NCSharp. “For example, if a state does not have a brick and mortar casino industry, the legislature may look to tether sports wagering access to a pro sports team.”

North Carolina online sportsbooks

Eight sportsbook providers have applied to operate in NC and begin operating on March 11. The eight operators and their partners are:

In addition to these eight, the Catawba Two Kings Casinoapplied for a license. The tribe expects to begin operations after the March 11 opening day.

Liberal legislation

It’s noteworthy that the North Carolina online sports betting legislation allows prop bets on college athletes. This is a controversial position. Several states don’t allow bets on in-state college teams. Several states allow betting on in-state university teams but do not allow prop bets on those teams. A few states, soon to include North Carolina, allow both types of bets.

“When discussing bans on prop bets, many lawmakers or policymakers cite concerns associated with harassment of student-athletes and integrity of the sporting events,” Tait said.

What action the state of North Carolina could take to prevent student-athlete harassment is yet to be seen. Ohio may offer a route to follow if such harassment becomes a problem. Ohio bans sports bettors who have harassed student-athletes.

Positive outcomes of legal sports betting

There are many positives to legalizing sports betting in the state. First, the North Carolina Lottery Commission provides strong oversight. This will make sports betting safe by holding operators legally accountable for their conduct. Such regulation will also reduce the use of offshore and illegal operators.

“A regulated market must be able to compete with and provide patrons with reasons to move away from offshore or illegal bookies,” Tait said.

“Effective regulations, competitive wagering offerings and ensuring patrons understand the benefits of a safe, regulated book are all critical. Enforcement actions to shut down illegal gambling operations also need to be a priority. Unfortunately, you still see media and others link to or promote offshore sites, which is disappointing.”

Problem gambling assistance

Regulation also helps those with problem gambling. Legislators have earmarked $2 million annually from the projected state tax revenue for the NC Problem Gambling Program. The program is through the state’s Department of Health and Human Services and provides several avenues for assistance and support, including enforceable voluntary self-exclusion.

Education funding

The newly legal market sets up North Carolina to take in its share of the $4+ billion in tax revenue generated from sports betting across the US since 2018. North Carolina will likely see more than $64 million in sports betting tax revenue in the first year. Analysts expect that number to increase annually.

"This legislation will help North Carolina compete, make sure taxpayers receive a share, create many good-paying jobs and foster strong economic opportunity," Gov. Cooper said via press release in June 2023. "As we move forward, we should work to make sure more of the revenue is used to invest in our public schools, teachers, and students."

A bright outlook for NC sports betting

Only time will tell if the state’s sportsbook-partner tethering structure will bring about the desired results. Still, with eight sportsbooks partnered with sports entities and ready to launch opening day on March 11, the future looks bright for the North Carolina sports betting scene.

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