SPORTS WAGERING/HORSE RACING WAGERING. (NEW)

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View NCGA Bill Details2023-2024 Session
House Bill 347 (Public) Filed Monday, March 13, 2023
AN ACT TO AUTHORIZE AND REGULATE WAGERING ON PROFESSIONAL, COLLEGE, AND AMATEUR SPORTS AND ON HORSE RACING IN NORTH CAROLINA, AND TO AUTHORIZE LIVE HORSE RACING IN NORTH CAROLINA.
Intro. by Saine, Bell, Hawkins, Clemmons.

Status: Ch. SL 2023-42 (Jun 14 2023)

SOG comments (2):

Long title change

Committee substitute to the 2nd edition changed the long title. Previous long title was AN ACT TO AUTHORIZE AND REGULATE SPORTS WAGERING ON PROFESSIONAL AND COLLEGE SPORTS IN NORTH CAROLINA.

Long title change

Committee substitute to the 3rd edition changed the long title. Previous long title was AN ACT TO AUTHORIZE AND REGULATE SPORTS WAGERING ON PROFESSIONAL, COLLEGE, AND AMATEUR SPORTS IN NORTH CAROLINA.

Bill History:

H 347/S.L. 2023-42

Bill Summaries:

  • Summary date: Jun 14 2023 - View Summary

    AN ACT TO AUTHORIZE AND REGULATE WAGERING ON PROFESSIONAL, COLLEGE, AND AMATEUR SPORTS AND ON HORSE RACING IN NORTH CAROLINA, AND TO AUTHORIZE LIVE HORSE RACING IN NORTH CAROLINA. SL 2023-42. Enacted June 14, 2023. Sections 1, 2, 3, 4, 5, 5.1, 5.5, and 6 are effective January 8, 2024. The remainder is effective June 14, 2023, except as otherwise provided.


  • Summary date: May 31 2023 - View Summary

    Senate amendment to the 5th edition makes the following changes.   

    Broadens the tax-based ground for revocation or denial of a license renewal by the NC Lottery Commission (Commission) under GS 18C-908(c)(3) (pertaining to renewals of licenses) by changing the listed ground to a violation of Article 2E of Chapter 105 (was, failure to pay tax under Article 2E of GS Chapter 105).  

    Amends GS 18C-909 (use of proceeds) by allowing the Commission to retain an amount of remaining proceeds reasonably necessary to cover future expenses related to administering new Articles 9 and 10 of GS Chapter 18C. Specifies that the total amount retained, including the percentage of Advance Deposit Account Wager/Wagering (ADW) licensee fees permitted to be retained under GS 18C-1010, cannot exceed the total expenses of the Commission related to administering provisions of Articles 9 and 10 during the previous quarter of the fiscal year. 

    Amends the marketing duties set forth in GS 18C-910(e) to specify that the interactive sports wagering operator and their agents (was, the interactive sports wagering operator, or those acting on its behalf) must ensure all advertisements and marketing of sports wagers, the sports wagering platform, and other sports wager related commercial offerings meet the listed requirements.  

    Amends GS 18C-928 by amending the conditions that must be met for a tribal gaming enterprise to be deemed a licensed interactive sports wagering operator, to include agreement to the adherence to the requirements of (was, collection and payment of all taxes imposed under) Article 2E of GS Chapter 105.

    Amends GS 18C-1010 to provide that the total amount of he ADW licensing fee retained by the Commission for future administrative expenses may not exceed the total expenses of the Commission related to administering the provisions of Article 10 and 9 during the previous quarter.

    Amends GS 18C-1015 by adding the requirement that an ADW licensee and their agents ensure that advertisements and marketing of advance deposit wagering: (1) does not target those under age 21; (2) discloses the identity of the ADW licensee; (3) provides information about or links to resources related to gambling addiction and prevention; (4) is not misleading to reasonable persons; and (5) satisfies the rules and requirements promulgated by the Commission.

    Amends GS 105-113.126 by providing that the 18% tax is imposed on each interactive sports wagering operator for the privilege of being licensed.

    Enacts new GS 105-113.126A requiring interactive sports wagering operators to register with the Secretary of Revenue and requires the Secretary of notify the Lottery Commission of failures to register. Requires an operator who changes ownership or stops engaging in the licensed activities to notify the Secretary of the change in writing. Requires the operator to maintain a bond or irrevocable letter of credit and for submitting all returns and for the payment of taxes.

    Amends GS 105-113.128 to allow the Secretary of Revenue to retain the cost of administering the Article (was, cost of collection by the Department). Also requires the Lottery Commission, no later than 20 days after the end of the month, to notify the Department of Revenue of its unreimbursed expenses (was, expenses) from administering Articles 9 and 10 from the previous month.

    Makes Section 5.1 of the act (changing the name of the North Carolina Outdoor Heritage Advisory Council in GS 105-113.128) effective January 8, 2024, instead of when the act becomes law.

     


  • Summary date: May 30 2023 - View Summary

    Senate committee substitute to the 4th edition incorporates the provisions of the committee amendment to the 4th edition (summarized separately) and makes the following changes.   

    Amends GS 18C-1005 to allow persons holding a ADW licensee license (was, a sports wagering supplier license) or its equivalent in other states to be licensed as an ADW licensee sports wagering supplier (was, a sports wagering supplier) with or without further examination as determined by the Commission.


  • Summary date: May 30 2023 - View Summary

    Senate committee amendment to the 4th edition makes the following changes.   

    Makes the following changes to new Article 9 of Chapter GS 18C (pertaining to sports wagering). Amends the definition of pari-mutuel wager set forth in GS 18C-901(12) to cross reference the definition in GS 18C-1001, which defines pari-mutuel wagers or wagering as a form of wagering on the outcome of horse races, whether live or simulcast, in which wagers are made on one or more horses and all wagers are pooled and held by the host of the race or the ADW licensee for distribution (was, 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 in which the participants finish in a ranked order). Expands the list of types of sports wagering suppliers defined in GS 18C-1001(22) to include entities engaged in facilitating or enabling sports wagering activities on behalf of, or in affiliation with, interactive sports wagering operators in places of public accommodation. 

    Makes clarifying change to GS 18C-902(i)(4) (pertaining to when members of the NC State Lottery Commission (Commission) are prohibited from engaging in sports wagering).

    Amends GS 18C-904 (establishing an interactive sports wagering license) as follows. Amends the applicant refund provisions set forth in GS 18C-904(b) to specify that if the Commission denies an application for a sports wagering license, a flat rate of 5% of the applicant’s fee application will be retained by the Commission to offset associated expenses in reviewing the application (previously, Commission refunded application fee minus any expenses it incurred in reviewing the application). Specifies that the information pertaining to the applicant’s history of job creation in the State, plans for continued job creation, a documented history of capital investment in the State, plans for continued capital investment in the State, a documented history of partnership with a sports facility (if any), and the intentions of partnership to offer the placement of sports wagers at a place of public accommodation in accordance with Article 9 of GS Chapter 18C are informational in nature and intended to provide additional insight regarding applicants who intend to operate a place of public accommodation. Amends the public records provision of the section to clarify that the public records section pertaining to applications do not disrupt the provisions of GS 18C-916(b), which require that certain Commission records be treated as nonconfidential. Specifies that interactive sports wagering operator licenses are not assignable or transferrable unless the Commission approves and the licensing fee is paid (was, just approval by the Commission required). Specifies that the holder of an interactive sports wagering operator license is also deemed to hold a service provider license and sports wagering supplier license under the article for services, goods, software, or components provided in-house (makes conforming changes to GS 18C-907 by no longer providing that an interactive sports wagering operating providing covered services in-house must not be required to have a sports wagering supplier license in addition to the interactive sports wagering operator license). Allows for a sports facility or team to contractually appoint a designee approved by the Commission for all aspects of Commission oversight and operation if the sports facility or team applicant is a member of a league, association, or organization that prevents the sports facility or team from being subject to the regulatory control of the Commission or from otherwise operating under an interactive sports wagering license. 

    Amends the applicant refund provisions set forth in GS 18C-906(b) (service provider license) and GS 18C-907(d) (sports wagering license) to specify that if the Commission denies an application for a license, a flat rate of 5% of the applicant’s fee application will be retained by the Commission to offset associated expenses in reviewing the application. Amends the public records provision of each section to clarify that the public records section pertaining to applications does not disrupt the provisions of GS 18C-916(b), which require that certain Commission records be treated as nonconfidential. Specifies that sports wagering supplier licenses are not assignable or transferrable unless the Commission approves and the licensing fee is paid (was, just approval by the Commission required).

    Amends GS 18C-908(c)(2) (revocation or nonrenewal of licenses) to specify that a violation of the article or a pattern of noncompliance with rules or directives promulgated by the Commission are a ground for nonrenewal or revocation (was, just a violation of the article). Adds the Commission’s previous decision to suspend or impose civil penalties on the licensee as a ground for nonrenewal or revocation of a license issued under GS Chapter 18C, Article 9. Also amends GS 18C-908 by adding that the Commission may require an annual attestation of compliance from licensees; requires when a licensee identifies an instance of technical or material noncompliance in its annual attestation of compliance, that the licensee also submit a remedial or mitigation plan for the Commission's consideration.

    Amends GS 18C-909 to allow the Commission to also use license fees collected under GS Chapter 18C, Article 10, for expenses in administering Article 9 (was, just fees collected under Article 9). Makes clarifying change to GS 18C-909(b). Expands the scope of the advertising requirements under GS 18C-910(e) (duties of licensees) to include marketing of its sports wagering platform and related commercial offerings (was, just advertising of the platform) to require that the operator or those acting on its behalf (was, just the operator) ensure that advertisements and marketing messages and materials (was, just advertisements) also satisfy the rules and regulations promulgated by the Commission, in addition to other listed requirements. Adds choice of law requirement and forum selection clause. Bars any interactive sports wagering operator from requiring a registered player to waive any right, forum, or procedure otherwise available to the registered player under State or federal law. 

    Amends GS 18C-912(c)(3) (requirements for interactive accounts) to only require that an interactive account be funded with cash or cash equivalents (was, cash or cash equivalents online or placed at a sports facility). Adds requirement that the interactive account must meet or exceed the minimum requirements identified by the Commission, including technical requirements related to data privacy, data security, and sports wagering platform features to support responsible sports wagering.  

    Makes clarifying change to GS 18C-914(a) (integrity of competition and prohibited events). Adds new subsection GS 18C-916(b) specifying that non-public record documents and materials that applicants and licensees submit to the Commission will become public record if such materials are specifically identified by the Commission as providing a basis for a civil penalty, license suspension, license revocation, or other formal or informal enforcement action taken by the Commission against the licensee.

    Expands the scope of individuals required to use reasonable means to comply with the exclusion of individuals participating in the voluntary exclusion program set forth in GS 18C-922 to include any licensee under Articles 9 and 10 of GS Chapter 18C (was, just interactive sports wagering operators). Makes conforming changes throughout GS 18C-922 to account for increased scope of licensees and inclusion of pari-mutuel wagering.

    Amends GS 18C-926 (pertaining to places of public accommodation) to specify that each sports facility may partner with one interactive sports wagering operator to provide places of public accommodation. Requires that advertisements of a place of public accommodation comply with the requirements of GS 18C-910(e). Deletes subsection providing that no sports facility can be open for placing sports wagers during the eight hours before or during any college sports events at the sports facility or adjacent to the sports facility.

    Makes clarifying and technical changes to GS 18C-928(c)(2)(e) (pertaining to agreements by a tribal gaming enterprise as part of a licensed interactive sports wagering operator application under GS 18C-928). 

    Amends the definitions provision of new GS Chapter 18C, Article 10 (Pari-Mutuel Wagering), as follows. Amends pari-mutuel wager or pari-mutuel wagering to remove previously run horse races from the definition. Clarifies that simulcast means the telecast of live audio and visual signals of horse races at a simulcast facility (previously, no reference to simulcast facility).

    Amends GS 18C-1005 to allow the Commission to accept criminal history checks from applicants and its key persons that have been run in the 12 months prior to the application if an affidavit is submitted that states there has been no change in criminal history since the prior criminal history record check in this or any other state. Allows for persons holding comparable licenses in other states to be licensed as a sports wagering supplier with or without further examination as determined by the Commission.

    Makes technical change to GS 18C-1010. Specifies that application fees and annual fees collected under the article (was, just the section) can be used to offset the cost of administering the provisions of the article and Article 9 of GS Chapter 18C.

    Makes clarifying change to GS 18C-1015(b). 

    Specifies that the article does not authorize non-pari-mutuel wagering on the outcome of live, simulcast, or any other horse races (was, notwithstanding any other provision of law, an individual shall be permitted to place wagers on previously run horse races when physically located at a facility conducting a live horse race in this State).

    Amends GS 18C-1025 (rulemaking) to delete requirement that Commission comply with Article 2A of GS Chapter 150B when adopting rules under the article. Also deletes requirement that Commission adopt rules on previously run horse races. Now requires the Commission to adopt rules governing the conduct of horse racing in the State, which must include rules regarding play of wagers on simulcast horse races. 

    Further amends GS 18C-114 by amending the Commission’s powers related to Commission employees, to now also prohibit Commission employees from: (1) having a financial interest in any lottery licensee; (2) participating, if the employee has decision making authority, in any decision involving a licensee or license applicant with whom the employee has a financial interest; (3) representing, after leaving Commission employment, any licensee or license applicant.

    Further amends GS 18C-120 by giving the director the power and duty, under the supervision of the Commission, to exercise authority assigned or delegated by the Commission.

    Amends the stated purpose of GS Chapter 18C in GS 18C-102 to include, in addition to establishing a State-operated lottery, also providing for the regulation of other sanctioned gaming enterprises in order to generate funds for the stated public purposes and to support responsible gaming.

    Amends GS 18C-113 by amending the provision that makes Commission records open and available to the public, by making an exception for exceptions stated in Article 2 (North Carolina State Lottery Commission) or when disclosure would be used to (1) provide an unfair advantage to a  player or (2) impair or adversely impact the security or integrity of the Lottery’s operation, any of its games, or investigations into potentially fraudulent or other activities in violation of any laws, Lottery rules, regulations, and policies.

    Amends GS 18C-122 to allow the Commission to hear reports on the following, which are exempt from GS Chapter 132 (Public Records): (1) information on any vulnerabilities in Commission or Lottery security procedures, (2) information that could impair or adversely impact the Lottery or Commission’s security in carrying out its responsibilities, and (3) information that could be used to provide an unfair advantage to a player or jeopardize the integrity of any lottery game.

    Amends GS 18C-161 by excluding from funds that must be deposited into the North Carolina State Lottery Fund those that are excepted under Articles 9 (Sports Wagering) and 10 (Pari-mutuel Wagering) of GS Chapter 18C.

    Amends GS 18B-1005(a)(3), which prohibits an ABC permittee or their agent from allowing on their premises any violation of the controlled substances, gambling, or prostitution statutes, or any other unlawful acts, but specifying that gambling does not include wagering that is exempted by GS 4-309.3.

    Amends GS 105-113.128, concerning the use of the proceeds of the tax on interactive sports wagering operators, as follows. Changes the recipient of the $1 million for youth sports grants from the North Carolina Division of Parks and Recreation to North Carolina Amateur Sports, expands upon allowable grant recipients to include nonprofits in addition to local governments, requires awards to be used for the purchase of youth sports equipment or to provide public facility upgrades or improvements that would benefit youth sports, and adds that awards may be given only to applicants who demonstrate a primary purpose for the funding is to facilitate opportunities for persons up to age 18 to engage in youth sports. Amends the use of the $1 million in funds distributed to the North Carolina Outdoor Heritage Advisory Council for grants by specifying that the cap is per sporting team or group (was, sports team) per county per year, and amends the incentive grants to allow them to be also used to attract area events, to include tournaments and programs that are for sporting participants (was, nonprofessional athletes), and to allow the grants to be used for programs administered by non-profits, as determined by the North Carolina Outdoor Heritage Advisory Council, in addition to those administered by city, county, and local school administrative units. Amends the recipients of the 20% of remaining proceeds that are distributed equally among the listed institutions to support collegiate athletic departments to also include Appalachian State University, East Carolina University, and UNC-Charlotte.

    Adds that if Senate Bill 22 (Rename Outdoor Heritage Advisory Council), or substantially similar legislation becomes law, then GS 105-113.128 is amended to refer to the Outdoor Heritage Advisory Council as the North Carolina Youth Outdoor Engagement Commission and makes conforming changes.

    Makes a clarifying change in Section 7 of the act. Also specifies that sports wagering is not authorized in the State until a date identified by the Commission, which must occur as soon as practicable and may be no later than twelve months after the date this act becomes law.

    Amends the study by the Commission on the implementation of Articles 9 and 10 of GS Chapter 18C to require addressing the siting and opening of places of public accommodation (was, of public places of accommodation) and usage of those sites.

    Changes the spelling of parimutuel with pari-mutuel throughout the act.


  • Summary date: May 25 2023 - View Summary

    Correction:

    Senate committee substitute to the 3rd edition also amends GS 105-113.128 by adding UNC-Charlotte to the institutions that are to receive funding from the sports wagering operators tax proceeds to support collegiate athletic departments.


  • Summary date: May 24 2023 - View Summary

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

    Amends the definitions in GS 18C-901 that are applicable to Article 9, Sports Wagering, as follows. Amends the definition of covered services to no longer specify that it incudes the development or operation of the sports wagering platform and the determination of odds or line information. Changes the definition of gross wagering revenue to the total of amounts received by an interactive sports wagering operator from sports wagers less the amounts paid as winning before any deductions for expenses, fees, or taxes. Amends the definition of sports facility to include a motorsports facility that annually hosts more than one National Association for Stock Car Auto Racing national touring race (was, hosts a National Association for Stock Car Auto Racing national touring race and has a minimum seating capacity of 17,000 people). Amends the definition of sports wager or sports wagering to no longer require that the wager be placed via an interactive account.

    Amends GS 18C-902 by removing the referral to GS 18C-912 regarding interactive accounts. Requires the interactive sports wagering operator to monitor and block attempts to place unauthorized sports wagers (was, monitor and block unauthorized attempts to place sports wagers). Moves into this statute the provision in GS 18C-912 that prohibited seven categories of individuals from engaging in sports wagering. Makes clarifying changes.

    Amends GS 18C-904 by no longer requiring the North Carolina State Lottery Commission (Commission) to authorize at least 10 interactive sports wagering operators. Adds to the items that must be included in a sports wagering license application: (1) a documented history of job creation in this State and a plan for continued job creation in this State; (2) a documented history of capital investment in this State and a plan for continued capital investment in this State; and (3) a documented history of partnership with a sports facility, if any, and the intentions of that partnership to offer the placement of sports wagers at a place of public accommodation in accordance with Article 9. Amends the issues the Commission must consider when selecting the best qualified applicants to also include (1) the extent to which the applicant, or its affiliate, will create jobs in conjunction with sports wagering in this state; (2) the extent to which the applicant, or its affiliate, has made capital investments in this State, and the timing of such capital investments; and (3) the extent to which the applicant, or its affiliate, has a plan to open and operate a place of public accommodation in accordance with Article 9. Makes additional clarifying and technical changes.

    Amends GS 18C-906 by making technical changes.

    Amends GS 18C-907 by making wagering suppliers report to the Commission all criminal or disciplinary proceedings commenced against that sports wagering supplier in connection with its operations. Also requires them to report to the Commission all changes in key persons, and requires all new key persons to consent to a background investigation. Deletes similar requirements for interactive sports wagering operations.

    Amends GS 18C-908 as follows. No longer refers to the tax that must be paid by licensees as a privilege tax. Allows denial of a license renewal for an interactive sports wagering operator if there is good cause that the licensee has materially not complied with the provision of Article 9 (was, good cause to believe approval of another applicant would better meet the objectives of this Article in generating revenue for the State, protecting the public interest, and otherwise satisfying the criteria for issuance and no additional licenses are available).

    Amends GS 18C-910 as follows. Requires the interactive sports wagering operator and its service providers to make commercially reasonable efforts to provide for the reporting of income tax on winnings (was, income tax of registered players) were required by law. Requires operators to keep records, for three years, on each sports wager, including the identity of the individual placing the sports wager (was, including the identity of the registered player).

    Amends GS 18C-912 as follows. Provides that only a registered player is allowed to establish an interactive account (was, allowed to deposit cash or cash equivalents, or to place a sports wager) with an interactive sports wagering operator. Specifies that the registered player must be allowed to deposit cash or cash equivalents into the interactive account.

    Makes a clarifying change to GS 18C-918.

    Amends GS 18C-922 to extend the voluntary exclusion program to also include those wanting to exclude themselves from placing pari-mutuel wagers under new Article 10.

    Makes a clarifying change to GS 18C-924.

    Amends GS 18C-926 as follows. Allows permanent places of public accommodation for the purpose of playing sports wagers (was, for the purpose of accessing the registered players’ interactive account) to be associated with each sports facility. Removes the requirement that all sports wagers made at a place of public accommodation be placed via an interactive account. Amends the provisions applicable to the establishment of a temporary place public accommodation at a sports facility during a professional golf tournament to define temporary as opening no more than five calendar days before the professional golf tournament and closing no later than five calendar days after the tournament (was, prohibited operating more than five days prior to the tournament or five days after the tournament). Adds that the Commission may adopt rules as necessary governing the placement of any place of public accommodation on the property of a sports facility. Makes additional clarifying changes.

    Effective January 8, 2024, enacts new Article 10, Pari-Mutuel Wagering, in GS Chapter 18C, providing as follows. Sets out and defines terms as they are used in Article 10. Defines pari-mutuel wager or wagering as a form of wagering on the outcome of horse races, whether live, simulcast at a simulcast facility, or previously run, in which wagers are made on one or more horses and all wagers are pooled and held by the host of the race or the ADW licensee for distribution. Defines ADW licensee as a person or entity licensed to conduct advance deposit account wagering in this state. Makes it illegal to offer or accept advance deposit account wagers unless the person is an ADW licensee. Sets out requirements for the application for an ADW license and sets the application fee at $1 million. Requires the Commission to complete a background investigation, including a credit history check, tax record check, and criminal history record check. Prohibits awarding a license if the applicant or a person required to be disclosed on the application has been convicted of a felony or any gambling offense within 10 years of the application. Sets license duration at five years; requires applications for renewal to be submitted no later than 60 days before the current license expires. Requires the Commission to review ADW licensees annually to ensure they are acting in compliance with the Article and related rules; allows a license to be suspended or revoked for violations. Requires ADW licensees to pay an annual fee of 1% of the total pari-mutuel wagers placed by State residents accepted by the ADW licensee in the applicable year. Allows the licensee to designate whether the fee is to be paid on a fiscal or calendar year basis. Requires the proceeds of these fees to be used to offset the costs of administering Articles 9 and 10 with remaining proceeds, after payment of Commission expenses, remitted to the General Fund; allows the Commission to retain an amount reasonably necessary to cover future Commission expenses related to administration of the Articles. Allows a license to be suspended or revoked for failure to pay the annual fee.

    Requires State residents who want to place pari-mutuel wagers to establish an account with an ADW licensee. Sets out four categories of individuals who are prohibited from engaging in pari-mutuel wagering and requires licensee to make commercially reasonable efforts to ensure that prohibited persons are prevented from placing a wager with the licensee. Deems any member of the Commission who is determined to have placed a pari-mutuel wager with an ADW licensee to have resigned from the Commission as of the time the wager is placed and subjects Commission employees who have made such wagers to disciplinary action. Requires an individual to be allowed to place wagers on previously run horse races when physically located at a facility conducting a live horse race in this State.

    Makes it a Class 2 misdemeanor for a person to knowingly offer or engage in pari-mutuel wagering in violation of Article 10. Makes it a Class 2 misdemeanor for a person under age 21 to engage in pari-mutuel wagering. Makes it a Class G felony to knowingly attempt to suborn, collude, or conspire to include the outcome of any competition or aspect of any competition that is the subject of pari-mutuel wagering. Makes it a Class I felony for a license applicant to willfully furnish, supply, or otherwise give false information on the application. Specifies that nothing in Article 10 allows the ADW licensee to be charged with a violation without actual notice and knowledge that a person is under-age or giving false information.

    Requires the Commission to adopt rules necessary to administer and enforce the provisions of Article 10. Requires the Commission to adopt rules governing the conduct of horse racing in this State. Limits play of wagers on previously run horse races to a facility conducting a live horse race in accordance with the rules adopted by the Commission. Requires the Commission, in adopting rules, to consult the State Veterinarian regarding safety of horses. Requires the Commission, when adopting rules, to provide guidance on the issuance, denial, suspension, or revocation of a license provided under Article 10, on the operation of advance deposit account wagering by ADW licensees, and on the requirements for simulcast facilities.

    Amends GS 18C-114 to allow the Commission and Department of Revenue to agree to exchange any data necessary to enforce and administer Article 10.

    Amends GS 14-309.3 to exempt from Article 37 of GS Chapter 14 pari-mutuel wagering.

    Amends GS 16-1, voiding gaming and betting contracts, by excluding from the statute pari-mutuel wagers.

    Amends proposed Article 2E of GS Chapter 105, as follows. Replaces the 14% privilege tax with an 18% tax on interactive sports wagering operators. Specifies that the tax applies to the gross wagering revenue of the interactive sports wagering operator. Allows carry forward for up to 12 months if the amount of revenue is a negative number for any month. Makes returns due monthly. Sets out record keeping requirements. Allows a refund of the tax paid on a sports wager than has been refunded.

    Amends GS 105-113.128 by adding to the institutions that are to receive $300,000 annually from the tax proceeds to support collegiate athletic departments to also include Appalachian State University and East Carolina University.

    Enacts new GS 14-380.5 specifying that horse racing, as authorized and regulated in accordance with Article 10 of GS Chapter 18C, is not considered a horse show for purposes of Article 51A of GS Chapter 14, Protection of Horse Shows. Effective January 8, 2024.

    Requires the Commission to establish guidance to parties regulated by Article 10 of GS Chapter 18C. Provides that when adopting rules under new GS 18C-1025, the Commission must adopt rules providing guidance on the issuance, denial, suspension, or revocation of a license under Article 10 and guidance on the operation of advance deposit account wagering by ADW licensees. Allows the Commission to adopt rules before January 8, 2024, but no rule may become effective until on or after that date. Allows the Commission to accept and issue applications for licensure under Article 10 before January 8, 2024, so that licensees may begin operations on January 8, 2024. Requires the Commission to use sufficient funds from the North Carolina State Lottery Fund to cover initial operating expenses to implement Article 10.  Requires the Commission’s study to include study implementation of Article 10.

    Makes conforming changes to the act’s titles.


  • Summary date: Mar 28 2023 - View 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.


  • Summary date: Mar 22 2023 - View Summary

    House committee substitute to the 1st edition makes the following changes. 

    Section 1

    Amends the definition of gross wagering revenue in proposed GS 18C-901 so that it is now the total of the following received by an interactive sports wagering operator from sports wagers: (1) cash or cash equivalents, whether collected or not and (2) cash value of any bonuses or promotional bets (was, the total of all cash or cash equivalents only).

    Section 4

    Amends proposed GS 105-113.126 by amending the calculation of the privilege tax on interactive sports wagering operators, by reducing the cap on the amount of actual uncollectible receivables from registered players to be deducted from the gross wagering revenue at 2% of gross wagering revenue minus all cash or cash equivalents paid out as winnings to registered players (was, not to exceed 4% with no mention of cash paid out). Also amends the statute by adding that no refund of the tax paid is allowed for an amount that should be subtracted from gross wagering revenue as an actual uncollectable receivable, regardless of whether the amount is actually subtracted or not.

    Amends proposed GS 105-113.128 by amending the distribution of the amount of the tax proceeds that remain after the required distributions to the Department of Revenue and Lottery Commission have been made, by also including UNC-Greensboro, UNC-Wilmington, and Western Carolina University among the universities that are to receive: (1) $300,000 to support collegiate athletic departments and (2) a distribution from the 10% allocation of the remaining proceeds, also to be used to support collegiate athletic departments.


  • Summary date: Mar 13 2023 - View Summary

    Section 1

    Enacts new Article 9, Sports Wagering, in GS Chapter 18C, providing as follows. Sets out and defines terms as they are used in the Article. Defines sports wager or sports wagering as the placing of wagers via an interactive account on any of the following: (1) a sporting event, (2) a portion of a sporting event, (3) the individual performance statistics of athletes in a sporting event or combination of sporting events, or (4) a parimutuel wager. Specifies that the term includes single-game wagers, teaser wagers, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play wagers, proposition wagers, straight wagers, and any other wager approved by the North Carolina State Lottery Commission (Commission). Defines parimutuel wager as a betting system in which all of the bets of a particular type are placed together in a pool and the sports wager is placed against 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. Defines a sports wagering platform as a website, mobile application, or other interactive platform accessible via the Internet, mobile, wireless, or similar communication technology that a registered player may use to place sports wagers authorized under this Article.

    Legalizes sports wagering, including parimutuel wagering. Requires sports wagering to be placed via an interactive account (a mobile account established by a registered player for the purpose of placing sports wagers) and initiated and received within this State except as provided in GS 18C-928 (described below, concerning Indian tribe gaming). Requires an interactive sports wagering to: (1) ensure that the registered player is located within the State, and not present on Indian lands within the State, when placing any sports wager, using geofencing and (2) monitor and block unauthorized attempts to place sports wagers. Specifically excludes from this Article interactive sports wagering conducted exclusively on Indian lands by an Indian tribe operating in accordance with a Tribal-State gaming compact and authorized to conduct Class III gaming under a compact with the State. Prohibits a licensed sports wagering operator from accepting a wager if the registered player placing the wager is physically present on Indian lands when the wager is initiated and received; requires using geofencing to ensure compliance. Also prohibits: (1) sports wagering involving youth sports; (2) sports wagering on injuries, penalties, the outcome of a disciplinary proceeding against an event participant; and (3) the Commission serving as an operator of a sports wagering platform. Also excludes from the Article fantasy or simulated games or contests in which more than one fantasy contest player competes against each other 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. Gives the Commission and the Department of Revenue (DOR) authority to audit any interactive sports wagering operator or its service providers as related to sports wagering activities authorized under this Article. Allows any sports governing body on whose sporting events sports wagering is authorized to enter into commercial agreements with interactive sports wagering operators or other entities in which the sports governing body may share in the amount bet from sports wagering on sporting events of the sports governing body; specifies that a sports governing body is not required to obtain a license or any other Commission approval to lawfully accept such amounts. Defines a sports governing body as an organization headquartered in the United States that prescribes final rules with respect to a sporting event and enforces the code of conduct for participants therein; for electronic sports, the sports governing body is the video game publisher of the title used in the electronic sports competition, regardless of location. Specifies that the Commission is not authorized to establish, require, or enforce a maximum or minimum payout or hold percentage upon any interactive sports wagering operator.

    Requires obtaining an interactive sports wagering license before offering or accepting sports wagers. Requires the Commission to authorize at least 10 but not more than 12 interactive sports wagering operators to offer and accept sport wagers to and from registered players on sporting events, which include professional sports, college sports, electronic sports, amateur sports, and any other event approved by the Commission. Requires license applicants to submit an application and a $1 million licensing fee to the Commission; requires the fee to be refunded if the application is denied, minus expenses. Sets out items that must be included in the application. Requires the Commission to conduct a background investigation on the applicant and key persons as deemed necessary by the Commission, which will include a credit history check, a tax record check, and a criminal history record check. Prohibits awarding a license if an applicant or a key person of the applicant has been convicted of a felony or any gambling offense in any state or federal court within 10 years of application or renewal. Refusal by an applicant or key person to consent to the criminal history record check may constitute grounds to deny licensure. Allows denial of an interactive sports wagering license for the same reasons listed for denying a valid service provider license (discussed below). Provides that if there are more qualified applications than the number of authorized operators, then the Commission must select the best qualified applicants, taking into consideration the five listed factors. Allows licensing a person who holds a license issued by another US state or territory, or the District of Columbia, if the specified requirements are met, without any further examination. Also allows the Commission to accept another jurisdiction's or approved third party's testing of the interactive sports wagering platform as evidence that the sports wagering platform meets any of the Commission’s requirements. Requires the Commission to review and issue interactive sports wagering licenses to qualified applicants within 60 days of receiving a completed application; allows extending this period if the background check is outstanding. Denials must be in writing and state the grounds for denial. Limits which applicant information is considered a public record. Requires an interactive sports wagering operator to promptly report: (1) all criminal or disciplinary proceedings commenced against the operator in connection with its operations to the Commission and (2) all changes in key persons, with new key persons required to consent to a background check. Prohibits transferring a license without approval. Requires interactive sports wagering operators to maintain a reserve of the greater than no less than $500,000 or the amount required to cover the outstanding liabilities for sports wagers accepted by the interactive sports wagering operator. Sets out the allowable forms the reserve may take. Requires the reserve to be adequate to pay winning sports wagers to sports bettors when due; presumes this requirement is met if the operator maintains, on a daily basis, a minimum reserve in an amount at least equal to the average daily minimum reserve, calculated on a monthly basis, for the corresponding month in the previous year.

    Requires a license to provide covered services to an interactive sports wagering operator; excludes an interactive sports wagering operator providing covered services inhouse. Defines covered services as any service creating sports wagering markets and determination of sports wager outcomes that involves the operation, management, or control of sports wagers authorized by this Article, including the development or operation of the sports wagering platform and the determination of odds or line information; sets out items specifically excluded from the term. Requires the Commission to review and issue service provider licenses to qualified applicants within 60 days of receipt of a completed application; allows extending this period if the background check is outstanding. Requires denials to be in writing and to state the grounds for denial. Requires applicants to submit the application form and a $50,000 licensing fee. Sets out information that must be included in the application. Requires the Commission to conduct a background investigation on the applicant and key persons as deemed necessary by the Commission, which will include a credit history check, a tax record check, and a criminal history record check. Prohibits awarding a license if an applicant or a key person of the applicant has been convicted of a felony or any gambling offense in any state or federal court within 10 years of application or renewal. Refusal by an applicant or key person to consent to the criminal history record check may constitute grounds to deny licensure. Allows licensing a person who holds a license issued by another US state or territory, or the District of Columbia, if the specified requirements are met, without any further examination. Grounds for denial of a license may include: (1) the applicant is unable to satisfy the Article’s requirements; (2) the applicant or any key persons are not of good character, honesty or integrity; (3) the applicant's or any key person's prior activities, criminal record, reputation, or associations indicate a potential threat to the public interest, impede the regulation of sports wagering, or promote unfair or illegal activities in the conduct of sports wagering; (4) the applicant or a key person knowingly makes a false statement of material fact or deliberately fails to disclose information requested by the Commission; (5) the applicant or a key person knowingly fails to comply with the Article’s provisions or any requirements of the Commission; (6) the applicant or a key person was convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust within the 10 years prior to the submission date of the application; (7) any revocation, suspension, or denial of the applicant's or key person's license, certification, or registration to conduct sports wagering, other forms of gambling activity, or a covered service issued by any other jurisdiction; or (8) the applicant has defaulted on any obligation or debt owed to this State. Limits which applicant information is considered a public record. Requires a service provider to promptly report: (1) all criminal or disciplinary proceedings commenced against the operator in connection with its operations to the Commission and (2) all changes in key persons, with new key persons required to consent to a background check. Prohibits transferring a license without approval.

    Allows the Commission to issue a sports wagering supplier license to a sports wagering supplier; exempts an interactive sports wagering operator who provides covered services in-house. Defines a sports wagering supplier as a person that provides services, goods, software, or other components necessary for the creation of sports wagering markets and determination of sports wager outcomes, directly or indirectly, to any interactive sports wagering operator or service provider involved in the acceptance of sports wagers, 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; sets out items excluded from the term. Allows the Commission, upon request of an applicant for a sports wagering supplier license, to issue a provisional sports wagering supplier license if the applicant has submitted a completed application; sets a provisional license to expire on the date provided by the Commission. Requires license applicants to submit an application and a $30,000 licensing fee. Requires applicants to disclose the identity of: (1) the applicant's principal owners who directly own 10% or more of the applicant; (2) each holding, intermediary, or parent company that directly owns 15% or more of the applicant; (3) the applicant's board appointed CEO and CFO, or the equivalent; and (4) any other information the Commission may deem necessary. Waives disclosure of governmental created entities and investment funds or entities registered with the Securities and Exchange Commission. Specifies that a sports wagering supplier license or provisional sports wagering supplier license is sufficient to offer sports wagering services. Requires the Commission to conduct a background investigation on the applicant and key persons as deemed necessary by the Commission, which will include a credit history check, a tax record check, and a criminal history record check. Prohibits awarding a license if an applicant or a key person of the applicant has been convicted of a felony or any gambling offense in any state or federal court within 10 years of application or renewal. Refusal by an applicant or key person to consent to the criminal history record check may constitute grounds to deny licensure. Requires the Commission to review and issue licenses to qualified applicants within 60 days of receipt of a completed application; allows extending this period if the background check is outstanding Allows licensing a person who holds a license issued by another US state or territory, or the District of Columbia, if the specified requirements are met, without any further examination. Prohibits transferring the license without approval.

    Sets the duration of each of the above licenses at five years. Requires licensee to submit a renewal application at least 60 days before the license expires; sets out the renewal fees. Allows the Commission to revoke or deny a license renewal for: (1) the same grounds that would constitute denial of an initial application, (2) a violation of this Article, or (3) failure to pay the privilege tax. Allows denial of an interactive sports wagering operator license if there is good cause to believe approval of another applicant would better generate revenue for the State, protect the public interest, and otherwise satisfy the criteria for issuance, and no additional licenses are available.

    Requires the Commission to use tax proceeds and license fees to cover expenses of administering the Article; remaining proceeds are remitted to the General Fund.

    Requires an interactive sports wagering operator and its service providers to make commercially reasonable efforts to: (1) prevent persons who are not registered players from placing sports wagers through its sports wagering platform; (2) prevent persons who are not physically located in the State from placing a wager through its sports wagering platform; (3) protect the confidential information of registered players using its sports wagering platform; (4) prevent sports wagering on prohibited events; (5) prevent persons from placing sports wagers as agents or proxies for others; (6) allow persons to voluntarily exclude themselves from placing sports wagers through its sports wagering; (7) establish procedures to detect suspicious or illegal sports wagering activity; (8) provide for the reporting of income tax of registered players where required by applicable State or federal law; and (9) prevent a participant in a sporting event, including an athlete, coach, trainer, official, or any employee or staff of a participant, from placing a sports wager on the sporting event in which the participant is participating. Requires interactive sports wagering operators to keep records for three years after a sporting event occurs, on: (1) all sports wagers, including the identity of the registered player; (2) the amount, type, time, location, and outcome of the wager, including the IP address, if available; and (3) suspicious or illegal sports wagering activity. Require disclosure of these records to the Commission upon request. Requires sports wagering platform advertisement to: (1) not target persons under 21 years old, (2) disclose the identity of the interactive sports wagering operator, (3) provide information about or links to resources related to gambling addiction and prevention, (4) not be misleading to a reasonable person. Requires licensees to conduct background checks on newly hired employees, including searching for criminal history and any charges or convictions involving corruption or manipulation of sporting events and association with organized crime. Requires interactive sports wagering operators and service providers to use commercially reasonable methods to maintain the security of wagering data, registered player and other customer data, and any other confidential information. Requires servers necessary to the placement or resolution of a sports wager, other than back-up servers, to be physically located in North Carolina. Requires interactive sports wagering operators to produce a daily summary of all sports wagering activity, detailing all transactions processed through each wagering system.

    Requires being a registered player to deposit cash or cash equivalents, or to place a sports wager, with an interactive sports wagering operator. Sets out requirements for the registered players' interactive account and limits registered players to one interactive account with each interactive sports wagering operator. Sets out seven classes of individuals who are prohibited from engaging in sports wagering, including: a person under age 21; any Commission member, officer, or employee if placing a sports wager in this state; any employee or key person of an interactive sports wagering operator or service provider licensee when placing sports wagers with that interactive sports wagering operator; and any participant in the sporting event being bet on. Sets out conditions under which a registered player's interactive account may be suspended or terminated. 

    Allows a sports governing body to request in writing that the Commission restrict, limit, or exclude a certain type, form, or category of sports wagering with respect to the body's sporting events, if the body believes that the type, form, or category of sports wagering may undermine the sporting event's or body's integrity. Requires the request to be granted upon demonstration of good cause that the wagering is likely to undermine the body's or event's integrity. Sets out additional guidelines governing this process. Requires the Commission and interactive sports wagering operators to cooperate with investigations conducted by sports governing bodies or law enforcement agencies. Provides that interactive sports wagering operators are not required to use official league data to determine: (1) the results of tier one (a sports wager that is determined solely by the final score or final outcome of the sporting event and is placed before the event begins) sports wagers on sporting events of any organization whether headquartered in the United States or elsewhere or (2) the results of tier two (anything other than a tier one) sports wager on sporting events of organizations that are not headquartered in the United States. Allows a sports governing body to notify the Commission that it wants interactive sports wagering operators to use official league data to settle tier two sports wagers on sporting events of such sports governing body; sets out the process to be followed when such a request is made. 

    Allows the Commission to take the following actions, after notice and hearing, when a license holder violates the Article: (1) suspend or revoke the license and/or (2) impose a penalty of up to $10,000 for each violation.

    Sets out the following criminal penalties: (1) Class 2 misdemeanor to knowingly offer or engage in sports wagering in violation of this Article or for a person under age 21 to engage in sports wagering, (2) Class G felony to knowingly attempt to influence the outcome of any competition or aspect of any competition that is the subject of sports wagering, and (3) Class I felony for any license applicant to willfully give false information on the interactive sports wagering license application.

    Requires the Commission to establish a program under which individuals may voluntarily exclude themselves from placing sports wagers; requires interactive sports wagering operators to use reasonable means to comply with the exclusion of individuals participating in the program. Requires the Commission to adopt rules to establish the program, subject to five specified requirements, including requiring a process by which participants can petition for removal from the program. Treats the program as confidential; allows an interactive sports wagering operator conducting wagering in another state to share the information with agents and affiliates in other states for excluding individuals participating in the program.

    Requires the Commission to adopt rules that allow but do not require interactive sports wagering operators and their service providers to employ systems that offset loss or manage or lay off risk. Allows sports facility owners or operators to establish a place of public accommodation for the purpose of accessing a sports wagering platform through mobile devices, computer terminals, or similar access devices; set out requirements for the location of such accommodations. 

    Allows permanent places of public accommodation for the purposes of accessing the registered player’s interactive account to be associated with each sports facility. Defines a sports facility as: (1) a motorsports facility that hosts a National Association for Stock Car Auto Racing national touring race and has a minimum seating capacity of 17,000 people; (2) a facility that hosts a professional golf tournament with more than 50,000 live spectators anticipated to attend based on similar prior tournaments; or (3) a facility that is the home location of a professional sports team that competes in any of the following professional leagues: Major League Baseball, Major League Soccer, National Basketball Association, National Football League, National Hockey League, or National Women's Soccer League. Sets out further provisions governing the location of the permanent places of public accommodation, including provisions that apply to professional golf tournaments. Requires all sports wagers made at a place of public accommodation to be placed via an interactive account. 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; however, specifies that only a cashier may distribute something of monetary value to the registered player at a place of public accommodation. Allows a place of public accommodation to be advertised by the owner or operator of the sports facility.

    Provides that the intermediate routing of electronic data related to intrastate sport wagering does not determine the location in which sports wagers are initiated and received. Deems activities authorized by the Article as conducted solely under the Article’s authority, not under the federal Indian Gaming Regulatory Act. Deems a tribal gaming enterprise as a licensed interactive sports wagering operator upon: (1) submission of a completed application, (2) payment of any application and renewal fees, and (3) agreement to five specified provisions by the tribal gaming enterprise. Excludes a tribal gaming enterprise deemed an interactive sports wagering operator from the total number of authorized interactive sports wagering operators.

    Effective January 1, 2024.

    Section 2

    Adds new Part 2L, under Article 10B of GS Chapter 143B, establishing the North Carolina Major Events, Games, and Attractions Fund (Fund). Sets out NCGA findings. Allows the Department of Commerce to enter into multiparty agreements with site selection organizations and local entities to provide grants from the Fund. Sets out nine conditions to be met, including that the economic activity directly or indirectly attributable to the major event is sufficient to justify the use of State funds to attract or retain the event in this state, and that a grant is necessary to attract or retain the major event to the state. Defines a major event as an entertainment, musical, political, sporting, or theatrical event where: (1) the event is held at a sports facility or is sponsored by NASCAR or the specified golf associations, (2) the event is not held more often than annually, (3) the location of the event is determined by a site selection organization through a competitive process, (4) the site selection organization considered multiple sites located outside of the state, and (5) the site selection organization selected a site within this state as the sole location for the event. Appropriates the funds remitted to the Fund from the privilege tax on sports wagering for the grants; requires the NCGA to determine any additional amount appropriated to the Fund. Sets out the process under which a local entity can apply for a grant. Requires the Department to report annually on the Fund to the specified NCGA committees and division. Requires the Department to conduct a study to determine the minimum funding level needed to successfully implement the Fund; requires reporting the study results to the specified NCGA committees and division annually. Sets out the process under which the Department, with the Governor, is to establish guidelines for the administration of the Fund, for the selection of projects, and for the disbursement of grants. 

    Effective January 1, 2024.

    Section 3

    Amends GS 18C-114 by making conforming changes to the Commission's powers. Adds that the Commission and Department of Revenue may agree to exchange any data necessary to enforce and administer Article 9 of GS Chapter 18C and Article 2E of GS Chapter 105, including information deemed necessary to perform an audit of a licensee or taxpayer under those Articles; makes conforming changes to GS 105-259.. Amends GS 18C-120 to make conforming changes by allowing the State Lottery Director to conduct background investigations of licensees under GS Chapter 18C and lottery contractors. Amends GS 143B-947 to allow the Department of Public Safety to provide the Commission and Director with criminal histories for licensees or prospective licensees under GS Chapter 18C; also allows fingerprints of those individuals to be forwarded to the SBI for a criminal history record search.

    Enacts new GS 14-309.3 exempting sports wagering from Article 37, Lotteries, Gaming, Bingo and Raffles, of GS Chapter 14.

    Makes conforming changes to GS 14-309.20, related to greyhound racing transmission or simulcasting.

    Amends GS 16-1, voiding gaming and betting contracts, by excluding sports wagers placed in accordance with GS Chapter 18C.

    Effective January 1, 2024.

    Section 4

    Adds new Article 2E, Privilege Tax on Interactive Sports Wagering Operators, under GS Chapter 105, providing as follows. Imposes a 14% privilege tax on interactive sports wagering operators on the value of the privilege conferred upon the interactive sports wagering operator by the State by the granting of a license. Sets out the formula for calculating the value of the privilege conferred on the operator. Allows a carryforward of the negative amount of gross wagering revenue; prohibits carrying forward an amount more than 12 months after the month in which the amount carried forward was originally due. Sets out record keeping requirements. Allows a refund to an operator on a sports wager that has been refunded to the registered player.

    Allows the Secretary of Revenue (Secretary) to require an interactive sports wagering operator to furnish a bond in an amount that adequately protects the State from an interactive sports wagering operator's failure to pay taxes due under this Article. Sets the bond amount at two times the interactive sports wagering operator's expected monthly tax liability, provided the amount of the bond may not be less than $50,000 and no more than $2 million. Requires the Secretary to periodically review the sufficiency of bonds and increase the amount of a required bond when the amount of the bond furnished no longer covers the anticipated tax liability of the interactive sports wagering operator and decrease the amount when the Secretary determines that a smaller bond amount will adequately protect the State from loss. Allows an operator to substitute an irrevocable letter of credit for the secured bond.

    Requires the Secretary to distribute this tax, less the allowance to DOR and reimbursement to the Commission for administrative expenses, as follows. Allows the Secretary to retain the cost of collection up to $500,000 a year. Requires the Commission to monthly notify the Department of its expenses from administering the provisions of Article 9 of GS Chapter 18C and requires reimbursing the Commission no later than the end of the month in which DOR was notified. Requires the remainder of the net proceeds of the tax to be credited in specified amounts in the following priority: (1) Department of Health and Human Services for gambling addiction education and treatment programs; (2) North Carolina Division of Parks and Recreation for grants of $10,000 per county for the purchase of youth sports equipment and facilities upgrades; (3) support collegiate athletic departments at Elizabeth City State University, Fayetteville State University, North Carolina Agricultural & Technical State University, North Carolina Central University, University of North Carolina at Asheville, University of North Carolina at Pembroke, and Winston-Salem State University; (4) North Carolina Outdoor Heritage Advisory Council for grants in specified amounts, in the discretion of the Council, for the following purposes: per sports team per county needing assistance to travel to in-State or out-of-state sporting events and team activities; to attract State, regional, and national sporting events, tournaments, and programs for nonprofessional athletes participating in programs administered by city, county, and local school administrative units; and use the remaining funds to support collegiate athletic departments, not to supplant general funding to that institution, at Elizabeth City State University, Fayetteville State University, North Carolina Agricultural & Technical State University, North Carolina Central University, University of North Carolina at Asheville, University of North Carolina at Pembroke, Winston-Salem State University, and then to the North Carolina Major Events, Games, and to the General Fund.

    Effective January 1, 2024, and applies to gross wagering revenue received on or after that date.

    Section 5

    Includes a severability clause. Effective January 1, 2024.

    Section 6

    Requires the Commission to establish guidance to parties regulated by GS Chapter 18C, addressing the application of Article 9 to electronic sports with due consideration to the key role of game publishers as creators of the underlying video game. Allows the Commission to accept and issue applications for licensure in accordance with Article 9 before January 1, 2024, in order that licensees may begin operations on January 1, 2024. Specifies that if more than 12 completed applications are received, the Commission in its discretion must select and notify the qualified applicants it determines will best serve the public interest in maximizing revenue to the State, while preserving the integrity of sports wagering and ensuring accountability and preserving the public trust in licensed sports wagering activities. Prohibits a license issued by the Commission from becoming effective prior to January 1, 2024.

    Section 7

    Requires the Commission to use sufficient funds from the North Carolina State Lottery Fund to cover initial operating expenses of the Commission to implement Article 9, provided the total amount borrowed by the Commission must not exceed $14 million without further action by the NCGA. Requires the Commission to repay these funds within 36 months after the effective date of this act.

    Section 8

    Requires the Commission to study the restrictions on the number of licensees and report its findings, with any legislative recommendations, to the specified NCGA committee by March 1, 2024.