North Carolina eyes pick’em prohibition with proposed sports betting rules

Officials from the North Carolina State Lottery Commission’s (NCSLC) sports betting committee have published a proposed framework for sports betting which includes a prohibition on so-called pick’em fantasy contests.

The rules were introduced as part of preparations for legalized sports betting in the Tar Heel State and are slated to be debated at a public hearing taking place on October 27.

Rules published fall into two main categories, general and application rules applicable to all license types and specific rules governing licensees engaged in sports wagering activity.

The NCSLC’s rules define fantasy contests as any contest where players compete and winning outcomes “reflect the relative knowledge and skill” of the players concerned, with results determined by statistical results based on athletic performance in sporting events.

The Commission has also defined what does not constitute as a fantasy contest, inclusive of pick’em wording, including any contests based on proposition wagering or contests that have the effect of “mimicking” prop betting or any other form of betting.

Also excluded are fantasy contests in which individuals choose whether an individual or a single real-world team will surpass an identified statistical achievement and any fantasy contest team where the submission does not involve a person’s knowledge or skill.

Lastly, fantasy contests in which single individuals, the entire roster of a real-world team or any team where all members of the same real-world team are picked, or any contest where an individual fantasy player does not compete against at least one other individual fantasy player, are excluded.

Although the rules have not been ratified by the NCSLC, the implementation of such rules would make North Carolina the latest in a string of states to target the vertical with rule changes, joining recent adopters New York and Michigan.

Officials from the New York State Gaming Commission ratified rule changes to DFS standards earlier this month, while a proposed ban authored by the Michigan Gaming Control Board was successfully implemented last week (October 13).

In both cases, the regulators concerned have utilized the same “mimicking” language to prohibit contests which mirror proposition betting.

The Coalition for Fantasy Sports (CFS), an advocacy organization made up of DFS operators Underdog Fantasy, PrizePicks, and Sleeper has opposed all attempts to introduce such restrictions on the vertical, utilizing lobbying of officials and petitioning.

The CFS has called for pick’em games to be treated as games of skill rather than chance, allowing for the continued exemption of the contests from the Unlawful Internet Gambling Enforcement Act (UIGEA), something which regular DFS contests currently enjoy.

In a statement sent to EGR, the CFS questioned the new rule changes, calling for North Carolina authorities to reverse the proposals.

“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,” the CFS said in a statement.

“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 legislators this past session to protect the fantasy sports that North Carolinians have played for years,” the CFS added.

Elsewhere, the NCSLC also reiterated its intention to have regulated sports wagering up and running in the state by June 2024.