AN ACT TO AUTHORIZE AND REGULATE SPORTS WAGERING IN NORTH CAROLINA.
Senate committee substitute to the 1st edition makes the following changes.
Revises proposed Article 9, Sports Wagering, of GS Chapter 18C as follows.
Modifies the Article's following defined terms. Now defines electronic sports to mean leagues, competitive circuits, tournaments, or similar competitions where individuals or teams play video games, typically for spectators, either in person or online, for the purpose of prizes, money, or entertainment (was, any video game played competitively for spectators, either in person or via remote connection, in which success principally depends upon the superior knowledge, training, experience, and adroitness of the participants). Now defines sporting event to include professional sports, college sports, and amateur sports, all of which may include electronic sports (previously, electronic sports were included in the term) and any other event approved by the NC State Lottery Commission (Commission). Adds that a sports facility can alternatively be a facility that hosts a professional golf tournament annually. Now defines tribal gaming enterprise to mean a federally recognized Indian tribe that is authorized to conduct Class III games in accordance with the federal Indian Gaming Regulatory Act in this state or a business entity owned or controlled by such tribe. Adds that any federally recognized tribe, or business entity owned or controlled by the tribe, that is deemed an interactive sports wagering operator under this Article must include authorization for any technology and sports wagering brand partners of the tribe or the business entity owned or controlled by the tribe, subject to compliance with the terms of this Article by the technology and sports wagering brand partners.
Adds a new section to the Article granting the Commission authority to issue a sports wagering supplier license (supplier license). Defines sports wagering supplier as a person that provides services, goods, software, or other components necessary for the creation of wagering markets and determining wager outcomes, directly or indirectly, to any license holder or applicant involved in the acceptance of wager, including any of the following: providers of data feeds and odds services, internet platform providers, risk management providers, integrity monitoring providers, and other providers of sports wagering supplier services as determined by the Commission. Specifies that a sports governing body that provides raw statistical match data to one or more designated and licensed providers of data and odds services is not a wagering supplier. Bars selling, leasing, distributing, offering, or otherwise providing services, goods, software, or other components necessary for the creation of betting markets and determining bet outcomes, directly or indirectly to any license holder or applicant involved in the acceptance of bets, without a license. Specifies that an interactive sports wagering operator is not required to obtain a supplier license. Requires a supplier license to provide sports wagering supplier services under a fixed-fee or revenue-sharing agreement. Allows for provisional licensing. Sets the supplier licensing fee at $15,000, with a $5,000 renewal fee, subject to the standard restrictions set for licenses issued under the Article, including license validity of five years. Provides supplier license application requirements, including identifying the applicant's principal owners who directly own 5% or more of the applicant and each holding, intermediary, or parent company that directly own 15% or more of the applicant, and the applicant's board appointed CEO or CFO. Waives investment funds or entities registered with the SEC and entities under the management of such entities registered with the SEC that are indirect or direct shareholders of the applicant from information disclosure requests in connection to the license application as determined by the Commission. Specifies that the Article does not make a supplier licensee or a temporary supplier licensee be subject to or required to obtain any additional license to offer the sports wagering services.
Corrects a statutory cross-reference regarding duties of interactive sports wagering operators relating to the requirement to allow voluntary exclusion from placing wagers through their platform. Adds a new provision to limit a sports governing body receiving real-time information-sharing for sports wagers placed on its sporting events to use such information for monitoring integrity only, and not for any commercial purpose.
Makes a technical change to a statutory cross-reference regarding interactive account funding requirements.
Makes a clarifying change to conform to terminology used in the Article in the list of factors the Commission can consider in determining whether official league data is being offered on commercially reasonable terms and conditions, now referring to an interactive sports wager operator regarding the availability of a sports governing body's tier two official league data.
Makes the following changes relating to the authority of an owner or operator of a sports facility to provide access to their sports wagering platform through places of public accommodation. Specifies that access can be offered with assistance from a person (was, alternatively with assistance, not specifying by a person). Sets a cap at one place of public accommodation for each owner or operator of a sports facility. Now allows for places of public accommodation to be located on other property owned or controlled by the owner or operator of the sports facility or an affiliated entity of the owner or operator of the sports facility that is within a one-half mile (was, one-quarter mile) radius of the sports facility, as an alternative to being located on the property containing the sports facility. Adds that a place of public accommodation can be either a permanent establishment or a temporary establishment associated with a specific sporting event of a series of sporting events. Now requires all wagers to be placed by an interactive account, and requires mobile devices, computer terminals, similar devices, and cashiers used to operate the place of public accommodation to have the ability to accept and distribute cash and cash equivalents.
Clarifies that a tribal gaming enterprise, as now defined, will be deemed a licensed interactive sports wagering operator upon satisfaction of three criteria. Mirroring the term tribal gaming enterprise's amended definition, adds that any federally recognized tribe or business entity owned or controlled by the tribe deemed an interactive sports wagering operator must include authorization for any technology and sports wagering brand partners of the tribe or the business entity owned or controlled by the tribe, subject to compliance with the terms of this Article by the technology and sports wagering brand partners.
Eliminates the requirement for the Commission to adopt temporary rules to implement the Article. Instead, directs the Commission to establish guidance to parties regulated by the provisions of the Article addressing the application of the Article to electronic sports, with due consideration to the key role of game publishers as creators of the underlying video game.