North Carolina is getting closer to sports betting, after the Senate Commerce and Insurance Committee referred the bill favorably to the Finance Committee.
HB347 was amended in the committee, but passed to the finance panel as the chances for legalizing sports betting in NC are nearing the finish line.
The amendments change the look of North Carolina sports betting
The committee approved amendments that include an increase in tax rates from 14% up to 18%; the removal of promotional credits from the taxable GGR; and the legalization parimutuel betting on horse races.
The version of HB347 passed by the House did not include parimutuel racing. It remains to be determined how this will affect any votes on the Senate Floor.
Senator Tim Moffitt addressed the committee on behalf of his bill and outlined some of the main reasons behind the expansion of gambling in the state.
Moffitt cited concerns about the black market when he said: “Betting is happening in our state. To tax and regulate it, as well as provide public benefits from the taxes, we must first authorize it. This isn’t legalizing, but it’s happening.
“This is simply recognizing the fact that this practice is there, and has been around since the dawn of time. The prevalence of this practice is increasing as smartphones and other technology become more accessible. “We need to regulate and manage it in our own state.”
The vocal opposition refers both to “crime” and “weakness”.
Despite the eventual passage of the bill, campaign groups had ample opportunity to express their opposition to the expansion of gambling in North Carolina. Families advocacy groups and religious groups were among the voices that spoke out.
John Ralston of the North Carolina Family Policy Council expressed concern over the increase in crimes that could result from legalized sports gambling. He explained: “If the bill is passed into law, there will be an increase in theft, embezzlement and personal bankruptcy. There will also be increases in substance abuse, domestic abuse, child abuse, divorcing, and suicide. The human cost of gambling addiction and legalized gambling is shown in the following graph.
Reverend Mark Creech is the Executive Director of Christian Action League. He told the committee that gambling appeals to our worst and weakest traits. It is a typical example of the “easy come, easier go” philosophy. It’s an expression of recklessness.
“Gambling does not depend on reason or intelligence, but rather on emotions and luck. Subtly, gambling on perception can lead to a growing callousness towards the interests of others. It may be a part of noble causes, but it undermines service and work ethic.
What else is included in the bill
HB347 remains largely unchanged. It would allow 10-12 online sports betting licences, as well as sportsbook lounges on NASCAR race tracks, large golf course, and professional team facilities for MLB, MLS NBA NFL NHL and NWSL franchises.
The House voted against many amendments, including raising the tax rate from 39% to 51%.
The bill is similar to one that failed in the Senate in 2022 at the eleventh hour. However, there was hope that the Senate could iron out some of the issues in 2023, and North Carolina could finally join Kentucky, and Vermont, in legalizing sports gambling this year.
After HB347 has been approved, it will be debated and voted upon by the Finance Committee before any possible floor vote. The North Carolina legislative session ends August 31.
