The North Carolina Senate will discuss changes to sports betting legislation Wednesday in the Commerce and Insurance Committee.
Sen. Jim Perry, leading the effort to pass sports betting in the Senate, provided PlayUSA with a copy of his substitute bill. Changes include an increase in tax rate and the addition of licensing for parimutuel wagering.
Perry will offer the amendment at a committee hearing beginning at noon EST. He says the changes could be voted on in committee Wednesday.
The House passed HB 347 at the end of March.
The Senate, which passed sports betting legislation last year, has taken its time in getting to the bill. But that shouldn’t be taken as an indicator that it lacks support.
Perry Perry tells PlayUSA that the bill has support to pass in the Senate, which could make North Carolina the third state to pass sports betting legislation this year. Retail sports wagering already takes place at tribal casinos in the state.
Senate changes to NC sports betting bill
The biggest change offered for HB 347 establishes licensing requirements for advanced deposit wagering.
As passed by the House, the bill includes parimutuel wagers in the definition of sports wagering. Perry’s amendment creates the advanced deposit wagering (ADW) license to offer parimutuel wagers.
Applicants pay a $20,000 fee for an ADW license. Each ADW licensee pays an annual 1% tax on the total parimutuel wagers placed by residents of the state.
Perry’s amendment also increases the sports wagering tax rate from 14% to 18%.
And the Senate wants to eliminate deductions on promotional credits offered by sportsbooks. Multiple representatives also proposed this change on the House floor.
The House bill initially allows sportsbooks to deduct promotional credits to promote attracting sports bettors to their legal and regulated market. After one year of unlimited deductions, the credits phase out over the next three years until they are not allowed beginning in 2027.
Details of North Carolina sports betting legislation
In addition to the changes being considered in the Senate, here’s the main details of HB 347 as passed by the House:
- Allows for 10-to-12 online sportsbook operators along with retail sportsbooks in or around North Carolina professional sports venues.
- Appoints the North Carolina State Lottery Commission to oversee sports betting.
- Guarantees interactive sports betting licenses to federally recognized North Carolina Indian tribes. These licenses don’t count toward the cap of 12 awarded by the Commission.
- Prohibits operators from taking online sports wagers originating from tribal lands.
- Charges $1 million every five years for an interactive sports wagering license.
- Service providers pay $50,000 for a five-year license and suppliers pay $30,000.
- Mandates operators use official league data for in-play wagers.