NC Allows Sports Betting; Is Horse Racing on Horizon?

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Photo: Edward Whitaker/Racing Post
Sports fans in North Carolina will be able to bet on sports on their mobile devices beginning in 2024

North Carolina became the 28th state to legalize mobile sports betting, according to the American Gaming Association, when Gov. Roy Cooper signed House Bill 347 into law June 14. But while betting on sports is grabbing the headlines, it is the glimmer of hope for Thoroughbred racing fans that might be a game changer. 

Speaking at a press conference in Charlotte Wednesday morning, Cooper said of the bill, "It will benefit taxpayers by giving them a portion of the earnings. Let's face it, sports wagering is already happening in our state. Surrounding states here and across the country are already taking advantage. This legislation allows the state of North Carolina to regulate it and to put safeguards on it, as well as provide funding for helping people with problem gambling." 

The earliest betting on sports can begin is Jan. 8, 2024, but the state's lottery commission has one year to implement its betting system which will allow betting for those 21 and up via websites and apps. 

Of particular interest to those in the Thoroughbred industry is that the bill was amended to include the prospect of horse racing. The bill authorizes pari-mutuel wagering on horse racing and live horse racing in the state. North Carolina does not have any Thoroughbred horse racing facilities. 

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The bill reads: "The Commission shall adopt rules governing the conduct of horse racing in this State, which shall include rules regarding play of wagers on simulcast horse races. In adopting rules, the Commission shall consult the State Veterinarian regarding safety of horses."

The last line is of particular note. The state may be leaving the door open down the road to develop a track. 

"Obviously, it's hugely important that it's in," said National Thoroughbred Racing Association president and CEO Tom Rooney. "We can't afford to be excluded from anywhere, even in states where we might not have a huge presence.

"As I've always said, if we're going to get to the next generation of horseplayers, it has to be part of however these platforms include us."

Through the amendment process, horse racing at times was included and then excluded from the bill. One such amendment mentioned that betting on previously run races, better known as historical horse racing, could only take place at venues in the state where there was live racing. That was removed May 30 and in its place was the emphasis on betting on simulcast racing, which could be a casino or sportsbook. 

The bill was introduced in March by North Carolina state Reps. Jason Saine, Ashton Wheeler Clemmons, Zack Hawkins, and John Bell. Calls for comment from each were not returned. 

Currently sports betting is only allowed at three tribal casino locations, but the state will issue five-year licenses to 10-12 sportsbook operators such as Draft Kings and FanDuel, who would pay North Carolina an 18% tax. The operators will be allowed to deduct promotional credits from their taxable revenue through 2026.

Eleven state universities will receive $300,000 annually from license fees and taxes. Other beneficiaries include the state's Department of Health and Human Services ($2 million annually), the Division of Parks and Recreation ($1 million annually), and the Outdoor Heritage Advisory Council ($1 million annually).

Additionally, there are eight current facilities that will be allowed to operate physical sportsbooks: Charlotte Motor Speedway, Bank of America Stadium, North Wilkesboro Speedway, PNC Arena, Quail Hollow Country Club, Sedgefield Country Club, Spectrum Center, and WakeMed Soccer Park.