Earlier today, the North Carolina sports betting committee gave initial approval to the state’s first proposed 48 sports betting rules.

The approved rules were just recently released to the public, and included in the initial batch is a section on daily fantasy sports that may limit what operators can offer in the Tar Heel State. The final approval of the rules will likely take place in early November after a public hearing in late October.

While DFS is legal in North Carolina, the state legislature has yet to pass any specific rules or regulations for the industry. These initial sports betting rules take aim at DFS in the state and attempt to define what is allowed within its borders.

Pick ‘Em In North Carolina’s Crosshairs?

According to the recently introduced rules, fantasy contests in North Carolina will be defined as follows:

“Fantasy or simulated games or contests in which one or more fantasy contest players compete and winning outcomes reflect the relative knowledge and skill of the fantasy contest players and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events.

Included in the rules is a number of prohibitions on fantasy sports contests, including one that specifically bans contests “based on proposition wagering or contests that involve, result in, or have the effect of mimicking proposition wagering or other forms of sports wagering.”

Pick ‘Em style DFS games involve customers playing against the house and making over-under type selections on a combination of statistical outcomes for athletes. Underdog Fantasy and PrizePicks, two popular DFS operators, both offer Pick ‘Em style DFS games in North Carolina.

The Coalition for Fantasy Sports, which represents PrizePicks, Underdog Fantasy, and Sleeper, released a statement regarding the new rules. A spokesperson for the group said the North Carolina legislature “ensured” the coalition that the sports betting bill would allow all fantasy contests to continue in the state.

“The legislature ensured that our contests would continue to be offered as fantasy sports when it passed its sports wagering bill just a few months ago. We are confident that the Lottery Commission will reach common sense rules that reflect the letter and spirit of that bill. We look forward to participating as stakeholders in the rulemaking process, just as we worked alongside with legislators this past session to protect the fantasy sports that North Carolinians have played for years,” a spokesperson said.

It’s similar wording to rules passed in other states that have banned DFS pick ’em games. The Michigan Gaming Control Board recently approved a similar DFS rule that banned Pick ‘Em games, prohibiting games that include “proposition selection or fantasy contests that have the effect of mimicking proposition selection.”

Rules Are Not Final

While the inclusion of the prohibition could mean trouble for Pick ‘Em games in the state, they are not yet final. The rules will be subject to a public hearing on Friday, Oct. 27, in Raleigh, N.C., and public comments on the rules will be accepted through Wednesday, Nov. 1.

The North Carolina sports betting committee will review the public comments and potentially make amendments to the rules before taking a final vote sometime in early November.