On October 17, North Carolina's Sports Betting Committee initiated the rulemaking process for proposed regulations regarding sports betting, with a public comment period open until November 1. Sports betting became legal in North Carolina after Governor Roy Cooper signed House Bill 347 into law in June, following several attempts to introduce it in the state. The legislation mandates that regulations must be published by January 8, 2024, and all sports betting operators must be authorized to accept wagers by June 14, 2024.
As North Carolina focuses on sports betting, it has taken note of developments in other states, particularly New York, which recently banned pick’em style daily fantasy sports (DFS) games. This New York ban came despite pushback from companies like Underdog Fantasy and PrizePicks. Should North Carolina proceed with similar restrictions on pick’em style games, such offerings will be prohibited in the state as well.
The proposed regulations in North Carolina define fantasy contests as involving games or contests where participants compete based on their knowledge and skill, largely determined by the statistical performance of individuals, including athletes from sports events. This could pose challenges for DFS operators, such as Underdog Fantasy, currently accessible in North Carolina, once sports betting is officially launched.
However, the Coalition for Fantasy Sports, which includes representatives from Underdog Fantasy, PrizePicks, and Sleeper, expressed confidence that the state legislature's provisions would allow fantasy sports to continue in the state. The coalition stated, "The legislature ensured that our contests would continue to be offered as fantasy sports when it passed its sports wagering bill just a few months ago. We are confident that the Lottery Commission will reach common sense rules that reflect the letter and spirit of that bill. We look forward to participating as stakeholders in the rulemaking process, just as we worked alongside the legislators this past session to protect fantasy sports that North Carolinians have played for years."
Notably, the proposed ban does not encompass five types of games, including proposition wagering that imitates other forms of sports wagering or instances where a player submits a fantasy team consisting of a single player or a complete real-world team. Additionally, it excludes games where the player can select whether an athlete or a real-world team will surpass a designated statistical achievement, such as points scored.
