Even after the launch of legal sports wagering, the work of crafting rules for the state’s sports betting industry continues. The North Carolina Lottery Commission (NCLC) met on Thursday to approve minor updates to regulations during its third round of rulemaking for sports betting and pari-mutuel wagering.
The vote to approve the updates was unanimous. The changes came after a period of public comment, review by the commission’s Sports Betting Committee, and staff recommendations.
Rules Undergo Minor Changes in Third Round
The first two rounds of rulemaking wrapped up before the launch of North Carolina online sports betting in early March. While those iterations provided the regulatory groundwork for online and retail sports betting, the third round focuses on compliance. This includes penalties for violations and disciplinary actions for conflicts of interest. The latest rules also solidify guidelines for operators’ internal controls, such as surveillance and security.
The current round includes two new rules and clarifies existing terms and definitions. One rule sets a deadline for sportsbooks to respond when notified about compliance inquiries. The second new rule outlines procedures for inspections of retail betting sites. Retail sports betting is available at the state’s three tribal casinos. The sports betting law also allows for retail sportsbooks at the pro sports venues where the teams partner with an online sportsbook. At this point, none of those venues have opened a retail sportsbook.
The public had a chance to provide feedback on the third round of regulations online and in person. NCLC staffers made recommendations, and the commission’s Sports Betting Committee reviewed and approved the changes before sending them to the full commission for a vote.
The changes discussed last Thursday were minor edits to fix a typographical error, to change terminology, and to clarify the lottery commission’s role in reviewing internal controls.
The latest version of the rules goes into effect on June 22, 2024.
Sports Betting Off to a Promising Start
Since expanded sports betting launched on March 11, North Carolina has exceeded expectations for handle and tax revenue. During April, the first full month of betting, the total handle was $648.9 million, and the state collected $18.9 million in tax revenue. Overall tax revenue for March and April was nearly $31 million.
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