Bill Summary for S 38 (2021)

Summary date: 

Jun 22 2022

Bill Information:

View NCGA Bill Details2021
Senate Bill 38 (Public) Filed Monday, February 1, 2021
AN ACT TO MODIFY SPORTS WAGERING REGULATION IN NORTH CAROLINA.
Intro. by Perry, Lazzara, Johnson.

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Bill summary

House committee substitute makes the following changes to the 3rd edition.

Section 5

Revises proposed Article 2E, GS Chapter 105, which imposes a 14% privilege tax for interactive sports wagering operators and establishes a formula for determining the value of the privilege conferred upon the interactive sports wagering operator. Changes the formula for determining the value of the privilege conferred, set as the gross wagering revenue less the five categories of expenses, by revising the third category of expenses substracted from the operator's gross wagering revenue. Currently, provides for subtracting the cash value of any bonuses or promotional credits provided to registered players returned to an operator in the form of a deposit or wager, with five phased limitations, ranging from reduction of such cash value without limitation until January 1, 2025, to capping the percentage of gross wagering revenue allowed at 2.5%, 2.25%, and 2% for specified periods, to disallowing such reduction on or after January 1, 2028. Reduces the phased limitations from five to four, now providing for a phased disallowance ranging from reduction of such cash value without limitation until January 1, 2024, to capping the reduction at a percentage of gross wagering revenue allowed at 2.5% and 2% for specified periods, and disallowing such reduction on or after January 1, 2026.

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