(The Center Square) — Legislation to legalize sports wagering in North Carolina moved closer to a Senate floor vote following approval from two committees on Tuesday.
The Senate finance and rules committees approved House Bill 347 Tuesday afternoon, setting the bill up to clear the upper chamber this week, likely with a vote Wednesday and a final vote on Thursday.
The legislation was amended in committees last week and on Tuesday, following a 64-45 vote in the House in March. If approved by the Senate, HB 347 would go back to the House for a concurrence vote before heading to Gov. Roy Cooper’s desk. Cooper has signaled support for the bill, which was initially set to launch sports betting on Jan. 8.
The launch date was amended in the Senate Finance Committee to stipulate the launch would occur “no later than 12 months after the act becomes law.”
Other changes Tuesday include the removal of historical horse racing, which involves a type of gambling that allows players to bet on replays of past horse races. HB 347 was amended last week to include pari-mutuel wagering on horse races, which remains in the legislation.
HB 347 was amended last week to increase the tax on up to 12 operators in the state from 14% to 18%. A new fiscal note estimates total 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.
The Spectrum Gaming Group analyzed per-capita disposable income in North Carolina and spending patterns in eight states with legalized sports betting to estimate operators would generate about $263 million in revenue by year three. Based on the 18% tax, the state’s tax revenues for the tax only would be about $47 million. That estimate doesn’t include fees or an annual 1% tax on the total pari-mutuel wagers placed by state residents added last week.
Sen. Jim Burgin, R-Harnett, noted that while the new fiscal analysis estimates total annual betting to be $7.2 billion, the state will receive about $100.6 million in tax revenues in year five, while operators will have gross gaming revenues of $585 million.
He also clarified there’s no prohibition on family members of sports participants wagering on their kin, or “microbets” involving individual plays or occurrences.
HB 347 was shepherded through the Senate by Henderson County Republican Sen. Timothy Moffitt, who has noted that 30 states and the District of Columbia have legalized sports wagering since 2018.
HB 347 would capitalize on illegal sports wagering that’s already occurring to regulate and tax the industry, both through mobile wagers and on-site betting at professional sports venues, he said. Tax revenues generated would go to fight gambling addiction, youth sports development grants, and University of North Carolina System school athletics programs, as well as the general fund.
Opponents have consistently argued in committee hearings the bill would lead to a surge in gambling addiction, theft, embezzlement, job loss, child abuse, suicide and other serious problems, if approved. Opposition includes the North Carolina Family Council, Christian Action League of North Carolina, and others.
Similar legislation cleared the Senate last session but was defeated by a single vote in the House. Speaker Tim Moore, R-Cleveland, 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.
Moore was cleared to vote on gambling legislation by a Legislative Ethics Committee on May 16.
