After nearly two months with no movement, a North Carolina sports betting bill will likely be discussed, and possibly voted on, by the full Senate next week.

Earlier this week, the Senate Committee on Commerce and Insurance passed the sports betting bill with a favorable report to the Senate Finance Committee. The Senate Finance Committee has placed the bill, HB 347, on their meeting agenda for Tuesday, May 30, at 1 p.m.

If approved by the finance committee the bill will then be sent to the rules committee, which may happen on the same day. If passed out of the rules committee, the bill will be sent to the full Senate and could be voted on next week as well.

Full Senate vote next week?

The bill is expected to be approved by the Senate Finance Committee and sent to the Senate floor for discussion. Senate leader Phil Berger (R-26) spoke to WRAL News this week and said the sports betting bill is likely to reach the Senate floor for votes on Wednesday, May 31, and Thursday, June 1.

The bill must be voted on twice in the Senate because it contains a tax.

If the Senate approves the bill, it will be sent back to the House of Representatives for concurrence. The sports betting bill has undergone a number of amendments that will have to be approved by members of the House before being sent to Gov. Roy Cooper (D) for his signature.

Members of the Senate Committee on Commerce and Insurance approved an amendment to increase the proposed tax rate from 14% to 18% of adjusted gross revenue. A separately approved amendment will also not allow sports betting operators to deduct promotional spend from their revenues.

The committee also approved an amendment to allow pari-mutuel wagering on horse racing. The amendment encompasses live racing, online betting, and betting on historical horse racing. Historical horse racing is a type of game resembling a slot machine that allows players to place bets on replays of past horse races.

Finally, the committee approved an in-person sports betting amendment that opens the bill up to brick-and-mortar sportsbooks at “places of public accommodation.” Brick-and-mortar sportsbooks will be allowed on the property of a stadium or arena, or within one-and-a-half miles of the facility. The sportsbooks will only accept cash bets and will not be allowed to operate eight hours before or during any college sports events at the facility or adjacent facility.

North Carolina sports betting bill details

Rep. Jason Saine’s (R-97) sports betting bill, HB 347, was approved by the House of Representatives in late March by a 64-45 vote on its third and final reading.

Saine’s bill originally allowed between 10 to 12 online sports betting operators and set the state’s sports betting tax rate at 14% of adjusted gross revenue. Saine’s bill allowed operators to deduct promotional bets and bonuses from their taxable revenue with no limitations through 2024, but the deduction rate will decline through 2026 and be disallowed starting Jan. 1, 2027.

An approved Senate amendment disallows the promo bet deduction practice.

Sports betting will be eligible to begin on Jan. 8, 2024, if the bill is approved by the Senate and signed into law by Gov. Cooper.

The proposed law allows bets on professional sports, college sports (including in-state schools), eSports, and the Olympic games.

Sports betting tax revenues will be distributed as follows:

  • $2 million annually for gambling addiction and treatment services
  • $1 million annually to Division of Parks and Recreation for the purchase of youth sports equipment
  • $300,000 each annually to seven state universities for their athletic departments
  • $1 million annually to Outdoor Heritage Advisory Council for grants

If there is any remaining revenue, it will be distributed as follows:

  • 20% to 10 historically black colleges and universities for their athletic departments
  • 30% to a fund to attract major sporting events to the state (Super Bowl, March Madness, etc.)
  • 50% to the state’s general fund