Sports betting committee established to aid state Lottery Commission

The latest step to establishing mobile sports wagering — approving the charter for a sports betting committee — was approved last week by the N.C. State Lottery Commission.

The commission appointed three members to the committee, led by Cari Boyce. The members are appointed annually.

The committee is designed to provide the commission with “oversight, direction and review with respect to the adoption, implementation, revision and revocation of rules and policy matters related to sports betting and pari-mutuel horse race wagering.”

Commission chairman Ripley Rand said that “putting an individual committee to deal with sports betting issues that don’t fit neatly into the other committees ... is an effective way to move things forward with sports betting in a more focused way.”

On June 14, Gov. Roy Cooper signed the bipartisan and divisive House Bill 347, titled “Sports Wagering/Horse Racing Wagering.” Cooper called HB347 a historic moment for the state of North Carolina, and one that will benefit the economy for generations to come.

The commission has been given authority to draft and adopt rules and regulations to govern sports betting and horse racing wagering activities, including requirements to support responsible betting.

Some elements of HB347 are scheduled to go into effect on Jan. 8 — the date of the 2024 College Football Playoff championship game — with the expectations that sports wagering will be fully functional and taking bets by June 14, 2024.

In August, the commission hired Gaming Laboratories International, a Massachusetts-based firm focused on testing and certification in the gaming industry, to assist with establishing sports betting regulations.

Gaming Laboratories will support the commission in several key areas of operations, including rule-making, licensing procedures, development of an audit program and risk control.

In the past year, Gaming Laboratories has assisted Kentucky, Massachusetts and Vermont with launching sports betting in those states. Massachusetts began its version of sports wagering on Jan. 31.

The commission’s goal “is to make sure wagering on sports and horse racing gets up and running in an effective and appropriate manner as soon as possible.”

Updates on sports betting and horse racing wagering are posted on the commission’s sports betting Web page at https://nclottery.com/sports-betting.

On July 29, the commission named a Massachusetts Gaming Commission executive to lead its gaming compliance and sports betting division.

Sterl Carpenter, who has more than 30 years of experience in the gaming industry, joins the commission in the new position of deputy executive director of gaming compliance and sports betting.

Serving on the nine-member lottery commission is Pam Whitaker of Winston-Salem, a retired human relations professional who was founder, owner and chief executive of Key Resources Inc.

Among the first initiatives is preparing applications and other forms for those seeking sports wagering operator licenses.

HB374 permits up to 12 online sports wagering operators.

Those companies will pay $1 million for a five-year license. Horse racing advance-deposit wagering platforms will pay $1 million for their licenses as well.

When North Carolinians are able to legally place a mobile sports wager, the vast majority will be doing so through mobile apps and at relatively modest amounts.

“Once mobile betting is fully available, 95% of sports wagering is likely to be made that way, particularly during the college football and NFL playoffs and the NCAA men’s basketball tournament,” said Max Bichsel, vice president of sports for Gambling.com.

BetCarolina.com analyst Steven Bittenbender added that it’s “a watershed moment for gaming in the country. The southeastern United States is one of the few areas where sports betting has not expanded as quickly as it has elsewhere.”

Legislative analysis of HB347 projected about $40 million initially in annual tax revenue and exceeding $100 million by 2029.

Bichsel said the magnitude of online betting in North Carolina “is beyond massive.”

“It could become one of the top states in the country for such wagering. You’ll see the appeal in particular when the ACC and NCAA tournaments are in North Carolina,” Bichsel said.