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North Carolina House Axes Mobile Sports Betting Measure
By Jeff Osienya Jun 23, 2022 LegalityNorth Carolina’s dreams of entering the regulated mobile sports betting scene this year have been shattered following a narrow loss in the House. For now, locals will have to stick to retail sportsbooks or cross borders to experience mobile wagering.A Senate bill proposing the legalization of mobile sports betting was shut down in the North Carolina House on Wednesday, shattering any hopes of such a law being passed in 2022. The said bill, SB688, was rejected by a close vote of 53-49 in the House Wednesday night.
Had it been passed, North Carolina residents would have been allowed to wager legally on sports via mobile betting apps. Effectively, the Old North State would have joined its neighbors in allowing locals to participate in in-state mobile sports betting without being forced to cross borders. However, with the legislative session set to end on 30, the odds are looking gloomy for proponents of mobile sports betting in the state.
SB688 was tabled in 2021, but only a few days ago did it finally get a hearing in the House. In just 24 hours, the bill had been put in front of the House Finance Committee, the House Rules, Calendar, and Operations Committee, and the House floor, where it finally faltered.
For over one year now, the state has had retail sports betting available at some tribal casinos. But for some reason, North Carolina lawmakers seem to have been holding off on online sports wagering for as long as possible. Meanwhile, a supplemental bill is being considered by the House, although it was primarily dependent on the former. This additional measure passed a second reading where some amendments were made, including increased tax levies from 8% to 14%. The tax rate is usually a hot topic for operators and legislators during negotiations, something that has been a cause for contention in New York. The decision to add the tax rate sweetens the pot and serves to try and win more to the bill’s side.
A Major Divide in Proponents and Opposers
The debate on legalizing mobile wagering has been hot in the Senate and House of Representatives, with both sides giving their reasons for wanting to go either way. But like with other states that have tried passing laws to regulate the industry, the opposition has always been tough.
Supporters of mobile sports betting include the NC Governor Roy Cooper (D), who endorsed it last year and has admitted that he is willing to sign sports betting legislation, North Carolina’s pro sports teams, and several lawmakers. The Governor’s signature is contingent on a bill passing at both the House and Senate levels. These proponents have cited the booming sports betting black market as an incentive for the state to rethink its reasons for delaying the legalization process. Being the ninth most-populated state, the stakes are high for the potential tax on GGR that is going to the illegal gambling industry.
Rep. Wesley Harris (D-Mecklenburg County) commented on the debate saying:
Quote“I certainly understand the concerns of my colleagues on both sides of the aisle, but I also disagree with them. The black market does exist, and people are already gambling. But there is no regulation, and there’s no help for those people.”
Regarding the two bills tabled to the House, Rep. Jay Adams (R - Catawba County) stated:
Quote“If you vote for this, you’re gambling that these two bills will control gambling, in North Carolina. This is just another opportunity to create unfortunate opportunities for people who can’t resist.”
Rep. Larry Pittman (R - Cabarrus), who places sports betting and monetizing human trafficking in the same box, also opposed the bill, asking the House:
Quote“What’s Jesus think of these two bills? He’s very clear, and I’m going to be on his side.”
Meanwhile, Rep. Abe Jones (D - Wake County), another opposer, stated that legalizing the activity could lead to prostitution, embezzlement, and exploitation. Rep. Marcia Morey (D - Durham County) also voiced her concerns, saying that the legislation felt rushed as it endorsed a business that would have consumers losing money.
The Tar Heel State is Missing Out on Gaming Industry Windfall
So far, mobile sports betting is legal in 19 states in the US, and it appears that North Carolina will be sitting it out for at least one more year. The industry has seen tremendous growth in the past two years, especially with retail betting being halted for some time due to Covid-mandated lockdowns. As a result, several states have moved to legalize and amend laws to cash in on the incoming revenue, which now amounts to billions of dollars.
The results have been evident, forcing those who have been hesitant before to reconsider their stance. As some states keep sitting on the sidelines, the more industrious jurisdictions have been allocating a big chunk of gaming sector tax revenue to development projects, which has, of course, nudged initially anti-gambling states to look at the bigger picture. North Carolina residents are now crossing their fingers, waiting to see how things unfold in the remaining days before this year’s legislative session closes.
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