New law allows sports betting but regulators need more time to set rules
North Carolina passed a law in June 2023 that legalized online and retail sports betting in the state, but the launch date has been pushed back due to regulatory hurdles. The law allowed sports betting to begin on Jan. 8, 2024, but the North Carolina Lottery Commission, which is in charge of overseeing the industry, said it needs more time to establish rules and approve operators.
The commission held a virtual meeting on Tuesday, Nov. 14, 2023, to discuss the progress of sports betting regulations and the challenges they face. Sterl Carpenter, the deputy executive director for gaming compliance and sports betting, said the commission has not started accepting applications from operators yet, and they still have to go through several steps before they can launch sports betting in the state.
Some of the steps include conducting background checks, reviewing internal controls, verifying geo-location technology, and ensuring security and responsible gambling measures. Carpenter said the operators also need to have written agreements with specific teams, leagues, or venues to offer sports betting in North Carolina, as required by the law. No such partnerships have been announced yet.
Sports betting won’t be ready for Super Bowl or March Madness
The commission’s chair, Ripley Rand, asked Carpenter during the meeting if sports betting would be ready by Jan. 8, 2024, the first date allowed by the law. Carpenter replied, “Absolutely not.” Rand then asked if sports betting would be ready by the Super Bowl, which is scheduled for Feb. 4, 2024. Carpenter said, “No, sir.”
The commission did not commit to a specific launch date, but said it would aim to have sports betting up and running by March 2024, which would still miss the popular March Madness college basketball tournament. The law gives the commission until June 15, 2024, to launch sports betting, but Rand said he hopes to beat that deadline.
The delay in launching sports betting is disappointing for many sports fans and bettors in North Carolina, who have been waiting for legal and convenient options to place wagers on their favorite teams and events. Currently, the only legal sports betting in the state is at three tribal casinos operated by the Eastern Band of Cherokee Indians and the Catawba Nation. However, these casinos are located in remote areas and do not offer online or mobile betting.
Fantasy sports rules put on hold amid public opposition
Another issue that the commission faced during the meeting was the regulation of fantasy sports contests, which are also covered by the new law. The commission had proposed a set of rules for fantasy sports operators, such as DraftKings and FanDuel, but received strong opposition from the public during the comment period.
Some of the concerns raised by the public included the lack of consumer protection, the potential for gambling addiction, the negative impact on youth, and the violation of the state constitution. The commission decided to remove the fantasy sports rules from the first package of regulations and focus on sports betting first. The commission said it would revisit the fantasy sports issue at a later date and seek more input from stakeholders.
The commission approved the first package of sports betting rules with some amendments based on the public feedback. The second package of sports betting rules, which was approved by the committee last week, is now open for public comment until Nov. 27, 2023. There will be a public hearing on Nov. 20, 2023. The commission will review the second package of rules and make a final decision on Dec. 6, 2023.
