North Carolina Governor Roy Cooper and Vermont Gov. Phil Scott signed legislation on Wednesday that will launch online/mobile sports betting in their respective states.
North Carolina
North Carolina already has retail sports betting at three casinos in the state. House Bill 347 signed on Wednesday will add online sports betting and give residents the option to place a bet through a phone app or website.
HB 347 will also add eight additional retail locations in the state; they include Bank of America Stadium, Quail Hollow Country Club in Charlotte, Charlotte Motor Speedway and Spectrum Center, where Gov. Copper signed the bill on Wednesday. Spectrum Center is home to the NBA Charlotte Hornets basketball team.
“To have this signed here and have this historic legislation become law in our building is something that we’ll remember forever,” said Fred Whitfield, president & vice chairman of the Charlotte Hornets.
“Betting on sports in our state is occurring,” Sen. Timothy Moffitt (R-48) told a Senate Commerce and Insurance committee in May. “But in order for us to regulate it, in order for us to tax it and provide a public benefit from those taxes, we have to authorize it first. So, this is not legalizing it in as much as it’s taking place. This is just recognizing that this practice exists.”
The original bill stated a 14% tax rate would be applied to the sportsbook’s revenue. The newly amended bill shows an increased tax rate of 18% on sports betting operators’ gross wagering revenue.
According to a Fiscal Analysis Memorandum issued in late May, fiscal year (FY) 2023-2024 estimates show total sports wagering tax and fee revenue set at $22.1 million, increasing to $100.6 million by FY 2027-28.
The new law also protects fantasy sports while legalizing mobile sports betting in North Carolina, according to the Coalition for Fantasy Sports.
Made up of members from leading, innovative companies — Underdog Fantasy, PrizePicks, and Sleeper, the coalition said the new law codifies the state’s commitment to promoting innovation, competition and consumer protection in the marketplace.
“North Carolina now joins a growing number of states to have adopted legislation that defines fantasy sports and protects fantasy sports players,” the coalition said in a statement. “To date, close to 20 states have passed pro-competition, pro-innovation laws recognizing fantasy sports.”
It is estimated that more than 50 million – roughly one in five – American adults play fantasy sports, the coalition said.
Lawmakers estimate mobile sports betting to go live in 2024.
Vermont
Sports wagering is a big step for Vermont, a state that bans most forms of gambling besides the Vermont Lottery. There are no casinos or legal options for sports betting currently.
The Vermont Lottery contributes all proceeds from lottery sales to the state’s Education Fund, while also strongly communicating the importance of responsible gaming.
Gov. Scott said he proposed legalizing sports betting several years ago and was happy to sign the measure into law on Wednesday.
“We know many Vermonters already participate in the marketplace and bringing it above board provides important resources and consumer protections,” Scott said Wednesday signing HB 127 into law.
“I first proposed Vermont legalize sports betting several years ago and I’m happy the legislature has come to an agreement,” Scott added. “Vermont now joins many other states who have made this move, and I want to thank Commissioner Knight and her team, as well as members of the legislature for their collaborative approach on this issue.”
HB 127 authorizes the Vermont Department of Liquor and Lottery (DLL) to operate and regulate sports wagering. The DLL would be tasked with negotiating and contracting with up to six online/mobile sportsbook operators like DraftKings Sportsbook, BetMGM Sportsbook, and Caesars Sportsbook to name a few.
The bill signed on Wednesday sets the minimum allowable revenue share rate at 20%.
“The hope is that it will go live in January and then we’ll have a whole year of revenue to see it in action,” Senator Alison Clarkson told legislators in late May.
The Vermont Legislative Joint Fiscal Office estimates the bill will generate approximately $2 million in fiscal year 2024, and between $4.6 million and $10.6 million in FY 2025 in sports wagering revenue.
