Notice of Proposed Rulemaking – North Carolina State Lottery Commission, Sports Betting Committee

October 18, 2023 | Government

Sports Betting is coming to North Carolina. Information on how to participate can be found here.

RALEIGH (October 17, 2023) — The North Carolina State Lottery Commission is moving forward with the substantial efforts required to responsibly license and regulate sports betting, and pari-mutuel wagering on horse racing, and horse racing itself. The new Sports Wagering and Horse Racing Wagering law gives the commission up to a year, June 14, 2024, to prepare for wagering. The commission’s goal is to make sure sports gaming gets up and running in an effective and appropriate fashion as soon as possible. Here are some of the latest milestones toward achieving that goal.

Overview

Under North Carolina’s new Sports Wagering and Horse Racing Wagering law, the North Carolina State Lottery Commission and its staff have the responsibility to license and regulate sports betting and wagers on horse racing.

The Commission will conduct rulemaking pursuant to its Rulemaking Policy and Procedure.

The law gives the Commission the responsibility to prepare the state for authorized wagering, including, among other things, creating rules and regulations for sports betting and for horse racing wagering; supporting responsible gaming; implementing and administering new licensing programs; and preparing to monitor and enforce the law and rules. The rules and regulations will govern up to 12 sports wagering operators and their service providers and suppliers as well as those operating advanced deposit wagering used in horse racing.

Commission Rulemaking

October 17, 2023 Notice of Rulemaking

During a public meeting on October 17, 2023, the Sports Betting Committee of the North Carolina State Lottery Commission approved commencing the rulemaking process on the first set of wagering rules and issued Notice of Proposed Rulemaking

The Commission will accept public comments regarding these rules through 11:59 p.m. ET, November 1, 2023. To submit comments, utilize the Commission public comment webform located at this link. The webform offers a place to easily comment on a specific rule or set of rules and provide any suggested changes.

If you prefer to submit comments in another format, please email comments to PublicComment@ncgaming.gov, along with your name and contact information, business or organization (if applicable), and the rule numbers to which your comments relate.

The Commission has scheduled a public hearing to accept public comments for October 27, 2023 to be held beginning at 9:00 a.m. at the North Carolina State Lottery Commission Headquarters, 2728 Capital Boulevard, Suite 144, Raleigh, NC 27604. Individuals who wish to make an oral presentation at the public hearing must register to speak at least one business day in advance of the hearing via web portal at this link

If you are interested in receiving future notices of the Commission’s rulemaking process via email, please register to the Commission’s rulemaking interested persons list by visiting this link.

For further information please consult the Notice of Rulemaking linked above, or email the Commission at sportsbettinginfo@lotterync.net.

No applications for licenses for sports betting or for advanced deposit wagering associated with horse racing are available at this time, but these materials will be available in the future.

Sports Wagering/Horse Racing Wagering Law

The new law authorizes sports wagering and horse racing wagering and directs the N.C. State Lottery Commission to regulate these activities, provide licenses to qualified actors, enforce legal requirements, and support responsible gaming. Among other things, the law also directs the N.C. Department of Revenue to collect tax revenues and fees generated by the wagering and to audit certain licensees. Review the text of House Bill 347 that created the new law here.

Sports Betting – Where The Money Goes

The N.C. Department of Revenue will collect an 18 percent tax on gross wagering revenues of sports betting and 1 percent of the total pari-mutuel wagers placed on horse racing.

Here’s how the N.C. General Assembly allocates the money raised by sports betting to benefit the state:

$1 million annually to North Carolina Amateur Sports to expand opportunities in youth sports.
Up to $300,000 annually to collegiate athletic departments at 13 state universities, including Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, N.C. Agricultural & Technical State University, N.C. Central University, University of North Carolina at Asheville, University of North Carolina at Charlotte, University of North Carolina at Greensboro, University of North Carolina at Pembroke, University of North Carolina at Wilmington, Western Carolina University, and Winston-Salem State University.
$1 million annually to the N.C. Outdoor Heritage Advisory Council for grants of up to $5,000 per team or group, per county, to help cover the cost of travel to in-state or out-of-state sporting events and grants of up to $25,000 to attract amateur state, regional, area, and national sporting events, tournaments, and programs.
Certain reimbursements to the N.C. State Lottery Commission and the N.C. Department of Revenue for expenses incurred to implement and administer the new law.
Of the remaining proceeds:
- 20% will be distributed evenly among the 13 state universities to support collegiate athletic departments
- 30% to a new North Carolina Major Events, Games, and Attractions Fund to foster job creation and investment in the state.
- 50% to the state’s General Fund.

The General Assembly allocates proceeds from pari-mutuel horse racing to the General Fund, after satisfaction of certain administrative expenses.

Responsible Betting

The N.C. Problem Gambling Program provides effective problem gambling prevention, education, outreach and treatment and recovery services. The new law allocates an additional $2 million a year to expand the program.

Free confidential help is already available through the N.C. Problem Gambling Program –24 hours a day, seven days a week. Talk, text or chat with a trained, licensed clinician that can provide free counseling services. Anyone can use this service.

Call 877-718-5543
Text “morethanagamenc” to 53342
Chat morethanagame.nc.gov

Additionally, licensed sports betting operators in North Carolina must demonstrate a commitment to responsible betting. To reduce the potentially negative or unintended consequences of sports betting, the law:

Establish and use a voluntary exclusion program to allow individuals to exclude themselves from placing sports wagers.
States that anyone who has requested a voluntary exclusion from a sports betting operator is prohibited from engaging in pari-mutuel wagering.
Includes age verification requirements to ensure that bettors are at least 21 years of age
Requires sports operator license applicants to provide information about responsible gaming training offered to their employees
Requires that advertising provide information about or links to resources related to gambling addiction and prevention in advertising and marketing of sports betting.
Requires that advertising and marketing does not target people under the age of 21 and is not misleading to a reasonable person.

Meetings & Contacts

Unless otherwise specified, meetings of the N.C. State Lottery Commission on sports wagering and horse race wagering will be held at the Commission’s offices or via video conference at times to be designated by the chair. No meetings are scheduled at this time.

For questions or additional information, email sportsbettinginfo@lotterync.net

Frequently Asked Questions

Sports Betting and Horse Racing Wagering FAQs

https://nclottery.com/sports-betting

What is the status of sports betting and horse racing wagering in North Carolina?
What are the Commission’s responsibilities?
Has the Commission adopted rules and regulations governing sports wagering?
Can I place a legal sports bet today?
When will I be able to place a legal sports bet?
What will I be able to place bets on?
Where will I be able to place a sports bet?
Is anyone prohibited from placing bets?
Will the North Carolina Education Lottery offer and accept bets on sports and horse races?
Is the Commission licensing sports betting and horse racing wager the same Commission that oversees the state lottery

https://nclottery.com/sports-betting

Yes. Members of the nine-member Commission hold appointive positions; serve five-year terms; and receive no salaries. They receive $15 a day when they attend meetings plus per diem. The responsibilities for licensing and regulating sports betting operators and advanced deposit waging operators is a new responsibility for the Commission and it plans hire a professional staff to perform those functions and then to oversee the staff’s work. The Commission also will continue overseeing the operations of the state lottery which are performed by a professional staff led by an executive director that it appoints. The Commission conducts lottery business during committee and Commission meetings that are generally held each quarter. You can see a list of Commission members here.