NC sports betting hanging lose, 1 of 2 bills rejected
North Carolina still dithering with online sports betting legislation
Online sports bettors in North Carolina are still holding their breath following the state legislature’s failure to legalize the practice. One of two crucial bills that would legalize betting in the state has been rejected. The SB688 bill failed to go through by one vote, after a 51 to 50 vote in the house on Wednesday, June 22, 2022. Though the SB38 bill went through by a similar vote margin, this had no effect as it was only an amendment to SB688. This scenario made sports betting prospects uncertain, as you will find out below.
Thwarted momentum towards sports betting
The momentum toward NC online sports betting has been building in North Carolina for some time now. The state has often looked over its shoulders at neighbors like Tennessee and Virginia, among many other states, that have already legalized online sports betting. So it seemed logical that NC would hurry its steps toward sports betting. However, some legislators in the NC General Assembly had other ideas, which they expressed to devastating effect on the floor of the house.
The sports betting bills
Here is the summary of the two bills that were presented before the house.
NC Senate Bill 688
SB688 proposed to allow the licensing of 10 to 12 operators to conduct mobile sports betting in NC. It also allowed sports betting lounges to be established at major sports venues. The bill would also authorize sports betting within the borders of the state. This means that it would not cover off-shore betting on sportsbooks based outside the state.
NC Senate Bill 38
The SB38 is essentially a financial amendment to the SB688. It requires businesses that participate in sports wagering to pay a privilege tax of 14% on gross revenue. This tax excludes winnings, promotions and bonus credits, and federal tax. The tax amount had already been increased from 8% by the house committee to encompass the views of those who opposed the legalization of sports legislation. In addition, the bill increased the sports betting license fee from $500,000 to $1 million.
Possible online sportsbooks that we could see if the bills were passed:
The state of Gambling in North Carolina
Interestingly, North Carolina is no stranger to gambling. The state operates a lottery and has Cherokee casinos that offer physical sports gambling. What seems to be alien to some conservative legislators is the online sports gambling concept. To appease this group, all gambling on college sports was already excluded by the bill.
This exclusion follows an ancient college sports scandal that still hovers over everyone’s heads. Nevertheless, the opposed legislators still cited this archaic scandal and the moral decadence of gambling to defeat the bill.
Arguments for online sports gambling in North Carolina
The main argument that was advanced in favor of sports betting in North Carolina is that the state is hemorrhaging revenue to other states. This is because off-shore betting is going on unabated in the state. Since North Carolina bettors are wagering on off-shore sportsbooks, the revenue they generate is collected by the neighbors. Consequently, North Carolina will continue to lose the revenue that the state would have collected with legal sports betting.
Another compelling argument is that the state direly needs sports betting tax to boost its revenue collection. Failing to legalize betting would therefore mean that the state would continue to lose this opportunity.
Finally, North Carolina boasts some big teams in American sports, like the Carolina Hurricanes, Charlotte Hornets and Carolina Panthers. There was a natural zeal by NC residents to bet on their favorite teams. If opportunities were not available to do so in their own state, then they would naturally bet online across the borders. Moreover, all these teams threw their weight behind the proposed legislation. The teams, plus the NHL, NFL and NBA, would be direct beneficiaries of sports betting sponsorship.
Arguments against NC online sports betting
Once legislator quoted the 1961 Dixie Classic points shaving scandal as a reason for opposing sports betting. This is not only ancient history but measures have long been put in place to avoid a repeat.
Another long-running argument in NC is that of the moral denigration that comes as a result of betting. Again, issues like betting addiction came up. Interestingly, the state cannot control such addiction if its citizens keep practicing off-shore betting.
Conclusion
The dithering by the state legislature on online sports betting is slowing down the inevitable. Ultimately, sports bettors will not only have their say but their way as well. The state will also not continue losing out to neighbors on the lucrative revenue that comes from sports betting. The big sports teams and organizations will continue pushing for this legislation. In the end, something will have to give.
