By Victor Skinner, The Center Square
New sports-books could hurt business at casinos
Raleigh – An amended bill to legalize sports wagering in North Carolina heads back to the House for further consideration following final approval in the Senate on Thursday.
Senators voted 37-11 to approve House Bill 347 on Thursday morning, with all but three Democrats in support, eight Republicans opposed, and two excused. The upper chamber amended the legislation to include horse racing and increase the tax on up to a dozen operators from 14 percent to 18 percent following a 64-45 vote in the House in March.
The measure heads back for a concurrence vote in the lower chamber, where Speaker Tim Moore (R-Cleveland) said Thursday lawmakers plan to approve the changes early next week.
Moore suggested on May 31 the bill could be combined with other gambling legislation dealing with video lottery terminals and casinos.
The HB347 sponsor Rep. Jason Saine (R-Lincoln) told the media he supports the other gambling legislation, but preferred to concur with the changes in the sports betting bill rather than combine it.
Gov. Roy Cooper has signaled support and included $60 million in tax revenues from sports wagering in his proposed budget for fiscal year 2024-25.
The most recent fiscal analysis estimates sports wagering tax and fee revenue for fiscal year 2023-24 at $22.1 million, increasing to $100.6 million in fiscal year 2027-28. HB347 initially set the launch date for sports betting as Jan. 8, but was amended in the Senate Finance Committee to stipulate the launch would occur “no later than 12 month after the act becomes law” – the day Cooper signs the bill, or allows it to become law without his signature, or gets a veto override.
Other changes in the Senate eliminated tax deductions for operators’ promotional spending.
If approved, HB347 would permit 12 $1 million online sports-book licenses that would run for five years and allow retail sports betting at eight facilities: Bank of America Stadium, Charlotte Motor Speedway, Quail Hollow Club and Spectrum Center, all in Charlotte, as well as North Wilkesboro Speedway, PNC Arena in Raleigh, WakeMed Soccer Park in Cary and Sedgegield Country Club in Greensboro.
The two casinos operated by the Eastern Band of Cherokee Indians, including Harrah’s Cherokee Valley River Casino & Hotel in Murphy, are the only locations for sports betting in the state.
Proponents contend HB347 would capitalize on illegal sports betting that already occurs in North Carolina to regulate and tax the industry, with the funds raised going to fight gambling addiction, youth sports programs, University of North Carolina System school athletics programs and the General Fund.
Opponents, including the N.C. Family Council and Christian Action League of North Carolina, counter that sports wagering will lead to a surge in gambling addiction, theft, embezzlement, job loss, child abuse, suicide and other serious problems.
Both support and opposition has been bipartisan.
Similar legislation cleared the Senate last session but was defeated by a single vote in the House. Moore had recused himself from voting on the bill last session and in March to avoid any perception of a conflict of interest due to his work acquiring land for a tribal casino in Kings Mountain.
A legislative ethics committee cleared the speaker of any potential conflicts earlier this month, which frees Moore to vote on HB347 next week.