North Carolina became the 28th state to legalize mobile sports betting, according to the American Gaming Association, when Governor Roy Cooper signed House Bill 347 into law on June 14. Purebred racing fans can be game changers.
Speaking at a press conference in Charlotte on Wednesday morning, Cooper said of the bill, “It would benefit taxpayers by giving them a share of the income. Let’s face it, betting. sports happened in our state Neighboring states here and across the country are being taken advantage of This act allows the state of North Carolina to regulate it and put in place measures to protect it, as well as providing funding to help people with gambling problems.”
Sports betting can begin as early as January 8, 2024, but the state lottery commission has one year to roll out its betting system, which will allow 21-year-olds and more bets through websites and apps.
Sports betting will keep North Carolina competitive while also supporting our economy and schools. Today, Governor Cooper signed House Bill 347 into law. pic.twitter.com/O42ofyI2Ln
— Governor Roy Cooper (@NC_Governor) June 14, 2023
Of particular concern to those in the Thoroughbred industry is that the bill has been amended to include the prospect of horse racing. The bill would allow pari-mutuel betting on horse racing and live horse racing in the state. North Carolina does not have any thoroughbred horse racing facilities.
The bill reads: “The Commission shall adopt rules governing the conduct of horse racing in this State, including rules relating to the placing of bets on simulated horse races. In passing the rules, the Commission will consult with the State Veterinarian regarding the safety of horses.”
The last line is of particular note. The state may be open to the possibility of developing the track.
National Thoroughbred Racing Association President and CEO Tom Rooney said: “Clearly, it was extremely important to have it included. “We cannot be excluded anywhere, even in states where we may not have a large presence.
“As I’ve always said, if we want to get the next generation of players on horseback, it has to be part of any platform that includes us.”
Through the amendment process, horse racing is sometimes included and then removed from the bill. One such amendment mentioned that betting on pre-existing races, aka historic horse racing, could only take place at venues in the state where the races were live. That was removed on May 30 and replaced with an emphasis on betting on simulated racing, be it casino or sports betting.
The bill was introduced in March by North Carolina Representatives Jason Saine, Ashton Wheeler Clemmons, Zack Hawkins and John Bell. Calls for comment from each were not returned.
Currently sports betting is only allowed at three tribal casino locations, but the state will issue 5-year licenses to 10-12 sports betting operators like Draft Kings and FanDuel, who will pay for North Carolina an 18% tax. Operators will be allowed to deduct promotional credits from their taxable revenue until 2026.
The state’s eleven universities will receive $300,000 annually from license fees and taxes. Other beneficiaries include the state Department of Health and Human Services ($2 million annually), the Parks and Recreation Board ($1 million annually), and the Outdoor Heritage Advisory Council. ($1 million annually).
In addition, there are eight existing facilities that will be allowed to operate sportsbooks: Charlotte Motor Speedway, Bank of America Stadium, North Wilkesboro Speedway, PNC Arena, Quail Hollow Country Club, Sedgefield Country Club, Spectrum Center and WakeMed Soccer Park.
