North Carolina’s fledgling online sports betting market is off to a robust start, but the prospect of expanding legalized gaming further this year appears increasingly unlikely. Discussions to extend casino gambling in the state have hit a snag, with House Speaker Tim Moore indicating that last year’s legislative deadlock may impede any progress in 2024.
Legislative Stalemate Hinders Casino Expansion
In 2023, efforts to legalize commercial casino gambling, including proposals to install video lottery terminals (VLTs) in various locations such as restaurants and bars, faced significant opposition from members of the Republican party. This opposition has cast a shadow over current discussions about gaming expansion. Moore highlighted that gaming is the primary issue delaying the state’s budget.
“I do think that the conversation last year as it related to casinos has put a shadow over the discussion about updates to the lottery with VLTs and so forth,” Moore told CBS 17.
Moore initially supported Senate President pro tempore Phil Berger’s attempt to add a casino amendment to the state’s 2023-25 budget bill. Berger’s proposal aimed to create gaming licenses for multiple counties and grant casino licenses to The Cordish Companies. Berger argued that these casinos would retain legal gambling revenue within North Carolina, preventing it from flowing into neighboring states like Virginia. Estimates suggested that legalizing VLTs could generate about $1 billion in annual revenue for the state.
Despite public support for casinos, House Republicans were divided, with concerns about the discussions happening behind closed doors without public input. As a result, Moore withdrew his support for the casino bill, and Berger acknowledged in February that he would not pursue casino legislation this year, leaving the decision to the House.
Online Sports Betting Market Thrives
While casino expansion faces obstacles, North Carolina’s new online sports betting market is thriving. Launched in March, the market has seen players place over $1.3 billion in bets. In April, the first full month of operations, operators reported a handle of nearly $650 million, matching the figures from March, with $105 million in gross gaming revenue.
Promotional bets significantly contributed to the market’s early growth. In March, operators distributed over $200 million in bonus bets and promotions, which decreased to below $80 million in April. Overall, the market showed positive month-over-month growth, with sportsbooks generating $105.3 million in gross wagering revenue in April, and netting $171.7 million in revenue since the launch.
Prominent operators like bet365, BetMGM, DraftKings, ESPN Bet, Fanatics Sportsbook and FanDuel are active in the state, each partnered with a professional sports team or venue as required by state regulations. Additionally, Caesars Sportsbook operates through a partnership with the Eastern Band of Cherokee Indians.
Future Outlook
The North Carolina legislative session extends until July, but forward movement on casino expansion seems unlikely. The success of online sports betting highlights the potential for legalized gaming, yet the legislative hurdles suggest that significant changes to the state’s gaming landscape may remain on hold for now.
Source: “North Carolina casino legalization push hits roadblocks”. SBC Americas. May 28, 2024.