North Carolina Nears Sports Betting Launch as Internal Controls Deadline Set

North Carolina has reached a significant milestone in its journey towards legalizing sports betting. The North Carolina State Lottery Commission has set a pivotal deadline for potential operators, urging them to submit their internal controls by January 26, 2024. This requirement is a crucial step in ensuring that applicants are well-prepared for the opening day of the sports betting market in North Carolina.

The decision to establish this deadline was made during a Commission meeting held on January 10, 2024. During the same meeting, the Commission also approved guidelines and documents to assist applicants in submitting their internal controls for approval.

It is imperative for every licensed operator to receive approval for their internal controls before they can begin offering sports bets in North Carolina.

While North Carolina has made significant progress, the exact launch date for legal sports betting remains uncertain. It is anticipated that the launch will occur sometime in March 2024. However, the timeline largely depends on the duration of the license application process.

The Commission must thoroughly review all applications and supporting information, conduct background checks, and analyze internal control details before setting a concrete launch date. Currently, the Commission is in the process of reviewing applications from nine potential operators, with the application process having commenced in December, following the signing of House Bill 347 into law by Governor Roy Cooper in June.

Another source of uncertainty revolves around the finalization of sports betting rules in North Carolina. Although some measures were outlined in the bill passed last year, the Commission has yet to finalize these rules. These measures encompass allowing bets on college sports, esports, and other Commission-approved sporting events, with an accompanying tax rate of 18% on each license holder's gross gaming revenue.

Furthermore, operators will be required to establish written designation agreements with sports teams, leagues, or venues before launching sports betting operations.

Several renowned operators are vying for a place in North Carolina's emerging sports betting market. BetMGM, for instance, has secured a market access agreement with Charlotte Motor Speedway, a well-known stock-car racing venue in Concord, North Carolina. The company expressed its hope that the North Carolina market would be open before the end of Q1.

DraftKings is also gearing up for entry into the state, partnering with Nascar, which grants DraftKings exclusive daily fantasy sports rights for Nascar events in the US and Canada.

Fanatics Betting and Gaming has taken its first steps into the North Carolina market by establishing a long-term partnership with the NHL's Carolina Hurricanes, becoming their Official Sports Betting Partner. This partnership grants Fanatics Sportsbook access to the North Carolina mobile sports betting market and the possibility of setting up a retail sportsbook at PNC Arena.

In an additional development, the Commission has granted approval to two independent testing laboratories, Gaming Laboratories International (GLI) and BMM Testlabs, to work with companies in North Carolina. These labs will evaluate gaming equipment, software, and processes to ensure compliance with state laws and Commission regulations.

The Commission continues to accept submissions from other entities interested in serving as independent testing laboratories, further solidifying North Carolina's commitment to maintaining the integrity of its sports betting market.