North Carolina sportsbook market takes shape in latest regulatory meeting
Officials greenlight latest set of sports betting rules revealing that 14 operators have registered interest in Tar Heel State licenses
North Carolina’s regulated sports betting market moved a step closer on Wednesday (December 13) with the passage of a second set of rules and regulations by the North Carolina State Lottery Commission (NCSLC).
At a meeting of the NCSLC, Tar Heel State officials debated proposed rule changes which have been subject to public comment since December 7.
Proposed changes included removing the rule preventing operators from buying the naming rights to sports facilities and racetracks, which would, in turn, have stopped them from purchasing the naming rights to certain areas of sports facilities.
Other changes which were ultimately greenlit included the addition of language stipulating that operators should not be able to advertise to individuals under the age of 21, as well as imposing a general prohibition on referring to bets as being “risk free” if there is any financial risk involved.
However, a proposed prohibition on sports venues including sportsbook branding anywhere on premises has been removed.
Another proposed rule change would have stopped operators from “compensating affiliates according to net revenue generated from bettors who signed up through the affiliate”, but this prohibition has also been removed, pending further study at a later time.
A proposed prohibition on pick’em-style DFS contests was also removed following comments from Underdog Fantasy and PrizePicks.
At the meeting, North Carolina Lottery deputy executive director of gaming compliance and sports betting, Sterl Carpenter, confirmed that the NCLSC’s focus would now switch to preparing application forms for the forthcoming operator licensing process.
Carpenter revealed that 14 operators have said they will potentially apply for licenses, three more than allowed under the state’s sports betting laws, throwing up the prospect of competition for licenses.
Under the new system approved by the North Carolina legislature in September, prospective operators are required to have a “written designation agreement” with North Carolina entities, including the state’s professional sports teams, motorsport facility operators, and golf tournament hosts.
These agreements must be in place before any license application can be filed, giving these groups a huge say in the ultimate makeup of the North Carolina sports betting market.
Eleven organizations are eligible to pursue written agreements with aspiring North Carolina operators, with brands including bet365, FanDuel, and ESPN Bet partnering with the Charlotte Hornets, PGA Tour, and Quail Hollow Club, respectively.