The launch of online sports betting in the Tar Heel State is not the end of the work for North Carolina regulators, who must continue to keep an eye on operators while also turning their attention to horse racing and new retail wagering facilities.
Mobile sports betting in North Carolina officially began on Monday, with eight licensed operators accepting action.
North Carolina is now the 30th state to launch online sports wagering, and there are early indications it will be a material market for sportsbook operators.
Yet there is still much to do for the North Carolina State Lottery Commission. A spokesperson for the regulator told Covers on Thursday that they will continue to review license applications (such as the one pending from Catawba Two Kings Casino), ensure compliance with the law and rules, and work with operators to ensure responsible gambling programs are working as intended.
Giddy up
The legislation that authorized online sports betting in North Carolina did the same for pari-mutuel wagering on horse racing.
While the sport of kings is not the same draw as it was 50 years ago, it still has plenty of loyal fans and bettors, and sportsbook operators have embraced the ponies as another valuable product they can offer to customers. For example, DraftKings and FanDuel now have standalone horse-racing platforms.
The two Caesars Sportsbooks at the two Harrah’s Cherokee casinos in North Carolina offer some limited options for horse racing, such as futures for the Kentucky Derby, matchups, or if a horse will win the Triple Crown. However, apps such as TwinSpires, TVG, and DK Horse are not yet licensed for business in the state.
Van Denton, communications director for the lottery commission, noted the regulator has already made progress on pari-mutuel wagering.
“Among other things, it has retained an experienced implementation partner; met with peer regulators from other states and with the North Carolina State Veterinarian; and adopted governance and licensing rules applicable to both sports wagering and pari-mutuel wagering,” Denton said in an email.
Derby Day draws nigh
Lottery commission staff will now solicit more input from operators and other stakeholders, evaluate different models for what will be a new wagering industry in North Carolina, and weigh the possible economic effects tied to various regulatory approaches, Denton said.
By law, regulators had until mid-June of this year to launch mobile sports betting in North Carolina, and they accomplished that feat three months before then. But, unlike sports wagering, there is no statutory deadline for pari-mutuel wagering on horse racing to launch.
That could cause a bit of irritation for would-be horseplayers in North Carolina. The Kentucky Derby, arguably the biggest race of the year, is scheduled for Saturday, May 4. Denton, however, said it is “still undetermined” if pari-mutuel wagering will be legally live by then.
Online sports betting is now live and legal in North Carolina with licensed operators. Those authorized bookmakers are:
— Geoff Zochodne (@GeoffZochodne) March 11, 2024
-Caesars Sportsbook
-FanDuel
-BetMGM
-DraftKings
-Fanatics
-bet365
-ESPN BET
-Underdog Sportshttps://t.co/MgMyLXpBnR
There are several hoops prospective licensees must jump through before they can start adding North Carolina action to their horse-racing wagering pools. First and foremost, there is a $1 million application fee for an advance deposit wagering license. Licensees will also have to pay an annual fee to the lottery commission equal to 1% of all pari-mutuel wagers they handle from residents in the state.
As with sports betting, horseplayers will have to be 21 and older to wager. All of the wagering will also be in the pooled, pari-mutuel fashion, with its changing odds. That is at least for the time being, as state lawmakers have not authorized any fixed-odds betting on horse racing.
Ready to retail
The commission is also ready to review requests to site and open “places of public accommodation,” which is the state’s term for the retail sportsbooks that can be located at or near professional sports venues.
North Carolina already has three brick-and-mortar sportsbooks at the three tribal casinos in the state. Nevertheless, it could be some time before similar facilities start popping up at Charlotte Motor Speedway or PNC Arena.
“Presently, Commission staff is developing a Place of Public Accommodation Certificate of Compliance process,” Denton said. “No operator-applicant has yet formally sought to submit materials to the Commission pursuant to Rule 1H-001 to propose opening a specific location for a place of public accommodation.”
