The North Carolina State Lottery Commission’s Regulated Gaming Committee met on Wednesday to discuss the state’s gaming industry. The topics included updates on sports betting revenues, personnel changes, and potential expansion.
North Carolinian bettors are eagerly awaiting the arrival of parimutuel race wagering in the state. Although that topic didn’t come up explicitly in the meeting, one of the most significant takeaways came from Mark Michalko, CEO and executive director of the N.C. Education Lottery, who alluded to possible changes in the Commission’s authority.
“There is a lot of talk downtown about potentially expanding the Commission’s purview in terms of other gaming that might come down the pike,” Michalko said, though he refrained from providing details. His comments suggest that discussions are underway about broadening the state’s legal gaming offerings, but any decisions will ultimately be determined by the N.C. General Assembly.
When NCSharp reached out to the Commission’s public information officer, Ryan Carter, for clarification, he reiterated Michalko’s statement. Carter also noted the newly created position of Chief Business Development Officer, now held by Sterl Carpenter, will be responsible for ensuring best practices in the Commission’s existing gaming operations while also developing strategies for any new responsibilities assigned by the legislature.
Personnel shifts within the regulatory division were also on the agenda. Eric Snider has been appointed as Chief Regulatory Officer, assuming some duties previously held by Carpenter.
Sports Betting Revenue and Competitive Positioning
During the meeting, Carpenter presented an update on sports betting revenue, summarizing figures already outlined in the annual report. While he was unable to provide direct comparisons between North Carolina and other states, he emphasized that the state’s policy on promotional wagers had played a crucial role in driving early revenue. Unlike some jurisdictions that allowed operators to write off promotional bets—resulting in little to no tax revenue initially—North Carolina’s approach ensured that tax dollars were collected from the outset.
April 2024 was highlighted as a standout month for sports betting revenue, largely due to promotional spending by operators seeking to gain market share. Carpenter noted that North Carolina’s model benefited from lessons learned in states like Massachusetts, where promotional deductions temporarily impacted tax collection.
Parimutuel Wagering Remains in Development
Although parimutuel wagering has yet to launch in North Carolina, the Commission continues to prepare for its eventual implementation. Under the state’s gaming laws, the Commission is responsible for regulating and overseeing parimutuel horse race betting, including advanced deposit wagering. However, no operators have been licensed to offer horse race betting, and challenges remain, particularly concerning licensing costs.
During previous meetings, the Commission has worked on developing a framework for parimutuel wagering, ensuring that once operators are ready to enter the market, regulations and compliance structures are in place. As the state continues to expand its gaming industry, horse race wagering remains a potential area of growth.
Compliance Measures Approved
The committee also approved the annual attestation of compliance for interactive sports wagering operators, service providers, and suppliers. The self-assessment form is designed to ensure transparency and identify potential regulatory concerns ahead of the Commission’s annual review.
The full Commission is set to meet on March 26, 2025.
Photo by Andrii Yalanskyi/Shutterstock
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