Bill Summary for H 347 (2023-2024)

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Summary date: 

Mar 28 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
House Bill 347 (Public) Filed Monday, March 13, 2023
Intro. by Saine, Bell, Hawkins, Clemmons.

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Bill summary

House committee substitute to the 2nd edition makes the following changes. Amends the act's long title.

Amends the definition of key person in proposed GS 18C-901 to mean an officer or director of a licensee or applicant for licensure who is directly involved in the operation, management, or control of sports wagering authorized under the new Article, or who exercises substantial influence or control over the sports wagering activities; amends the definition of parimutuel wager so that it is now a betting system in which all the bets of a particular type are placed together in a pool and the sports wager is placed against other sports wagers on the same sporting event (was other bettors placing sports wagers on the same event of horse racing, dog racing, or other sporting events) in which the participants finish in a ranked order. Makes a clarifying change to the definition of registered player to require the individual to have an interactive account. Removes placing a parimutuel wager from the definition of sports wager or sports wagering.

Amends proposed GS 18C-902 as follows. Specifies that the Article does not authorize the placing of a parimutuel wager and makes conforming changes; makes conforming deletion of changes to GS 14-309.20. Amends the requirements for conducting sports wagering exclusively on Indian lands to require the individual placing the wager to be physically present on Indian lands when the wager is initiated and received by an Indian tribe operating on the same Indian lands in accordance with a Tribal-State gaming compact (was, received on equipment that is physically located on Indian lands consistent with federal law and received in conformity with) and in conformity with the safe harbor requirements. Authorizes a licensed interactive sports wagering operator to accept a sports wager only if the registered player playing the sports wager is physically present in North Carolina when the wager is initiated and received. Amends the provision related to fantasy or simulated games or contests to allow for one player. Makes additional technical and clarifying changes.

Amends proposed GS 18C-904 (applicable to interactive sports wagering licenses), proposed GS 18C-906 (applicable to service provider licenses), and proposed GS 18C-907 (applicable to sports wagering supplier licenses) by making clarifying changes to the circumstances in which the North Carolina State Lottery Commission (Commission) may rely on a prior criminal history record check. Requires licensure applicants and identified key persons to also submit all necessary fingerprints. Makes additional technical and clarifying changes.

Further amends proposed GS 18C-907 by adding the following. Requires interactive sports wagering operators to promptly report all criminal or disciplinary proceedings commenced against the operator in connection with its operations to the Commission. Also requires promptly reporting changes in key persons with all key persons required to consent to a background investigation. Specifies that only the following documents are a public record: (1) the name, address, and sports wagering platform; (2) the name of all key persons; and (3) the granting or denial of the application.

Amends proposed GS 18C-910 to also require interactive sports wagering operators and their service providers to make commercially reasonable efforts to verify the location of the sports wagerer at the time the sports wager is initiated and received.

Amends proposed GS 18C-912 by amending the list of individuals prohibited from engaging in sports wagering by removing Commission officers, and removing employees or staff of an authorizing league or similar sponsoring organization.

Amends proposed GS 18C-914 by making technical and clarifying changes.

Amends proposed GS 18C-918 to also make it a Class I felony for an applicant for a sports wagering supplier license to willfully furnish, supply, or give false information on the application. Makes additional clarifying changes.

Amends GS 18C-922 by providing that participation in the voluntary exclusion program does not preclude an interactive sports wagering operation and its agents from seeking payment of a debt accrued by the individual while not participating (was, prior to participating) in the program. Makes additional technical changes.

Amends proposed GS 18C-926 by prohibiting a sports facility from opening to registered players for placing sports wagers during the eight hours before or during any college sports event at the sports facility or adjacent to it. Makes clarifying changes.

Amends proposed GS 18C-928 by no longer specifying application under GS 18C-904 is not needed when a tribal gaming enterprise is deemed a licensed interactive sports wagering operator upon meeting the specified conditions. Amends the conditions that are to be met by removing the requirement of payment of application and renewal fees. Makes additional clarifying changes and amends the statute's caption.

Makes technical changes to proposed GS 143B-437.11.

Amends proposed GS 143B-437.113 by requiring the grant application submitted by a local entity to include information necessary for the Department (was, Commission) to evaluate the application. Makes additional clarifying changes.

Amends GS 18C-114 to allow the Commission to charge a fee of a key person for the cost of criminal history record checks.

Amends GS 18C-120 and GS 143B-947 to allow and facilitate background checks of key persons.

Makes a clarifying change to GS 16-1.

Amends proposed GS 105-113.128 by amending distribution of the privilege tax proceeds as follows. Of the funds distributed to the Division of Parks and Recreation for grants to local governments to expand opportunities to engage in youth sports, amends the grant amounts so that the total amount awarded each year to all applicants in any one county is capped at 1% of the total funding availably on July 1 of that year (was, grants were in the amount of $10,000 per county). Amends the allocation of remaining proceeds by reducing to 50% (was, 60%) the amount distributed to the General Fund and allocates that 10% to the amount distributed to the specified entities to support collegiate athletic departments, bringing that allocation up to 20%; specifies that the allocations of the remaining proceeds are to be made annually.

Allows the Commission to accept and issue applications for licensure before January 8 (was, January 1), 2024, so licensees may begin operating on that date. Makes conforming changes.

Amends the study required of the Commission by setting out six items that must be included in the study and report.

Changes the specified effective dates from January 1, 2024 to January 8, 2024.