North Carolina Lottery Commission Proposes Sports Betting Rules

North Carolina Lottery Commission Proposes Sports Betting Rules

Sean Fener

Assistant Counsel & Regulatory Advisor

Oct 23, 2023

The Path to Sports Betting in North Carolina Discover how the North Carolina Lottery Commission is preparing for sports betting with public input and proposed rules.

Inching Closer to the Launch

The North Carolina Lottery Commission is making strides toward the launch of sports betting in the state, targeting a June launch. A series of proposed rules to regulate this industry is now open for public input, with the Commission actively seeking feedback.

The Sports Betting Committee of the Commission recently approved a notice of proposed rulemaking, outlining rules that cover essential aspects such as definitions, the application process, and the duties of the director. These rules provide a structured framework for the forthcoming sports betting sector.

Public Engagement: Feedback and Hearings

The public is encouraged to provide their input on these proposed rules until November 1, and a public hearing is scheduled for October 27 at the Lottery Commission’s headquarters in Raleigh. Those interested in speaking at the hearing must register with the commission at least one day before the event.

These rule approvals represent crucial steps in the lead-up to the launch of sports betting in North Carolina. Sterl Carpenter, a former Massachusetts regulator hired to oversee sports betting, mentioned that a second round of rulemaking will follow.

Recent changes in the sports wagering law, which replaced the cap on the number of operators with a requirement for “written designation agreements” with sports teams and facility owners, will influence the licensing process. The proposed rules make it clear that licenses will depend on maintaining these agreements.

Maintaining Compliance: Key Rules and Responsibilities

Rule 2B-007 highlights that operators must promptly notify the commission of any changes or discontinuance of these agreements within 72 hours. If the license expires due to a breach or discontinuance, operators must wind up operations and ensure payments and refunds to interactive account holders.

These rules represent significant progress toward the upcoming launch of sports betting in North Carolina, and additional efforts, including contracts with Gaming Laboratories International for implementation services and selecting a contractor to create a licensing portal, further enhance the commission’s readiness.

Revenue estimates from the state’s sports betting tax vary, ranging from $47 million in the first year to $126 million. The law permits the Lottery Commission to launch sports betting between January and June, with a need for rapid implementation to meet the June deadline, as explained by Sterl Carpenter last month.

Community Engagement: Shaping the Future

The North Carolina Lottery Commission’s commitment to public input underscores the importance of community engagement in shaping the future of sports betting in the state.

Disclaimer: The information in this article is based on proposed regulations and developments related to sports betting in North Carolina and may be subject to changes following public feedback and formal adoption.