North Carolina Casino Expansion Stalled by Legislative Disputes

North Carolina’s nascent online sports betting market is encountering early challenges, and the likelihood of expanding legalized gaming within the state this year appears slim.

State House Speaker Tim Moore indicated that the legislative ime from last year is likely to hinder any significant advancements in 2024 regarding the extension of casino gambling.

Legislative Hurdles for Casino Expansion

Discussions around expanding casino gambling in North Carolina continue, but Moore noted that the friction from last year’s legislative session might stall any forward movement this year. Republicans, who opposed the legalization of commercial casino gambling last year, included a proposal to install video lottery terminals (VLTs) in establishments like restaurants and bars. Moore highlighted this week that gaming remains the primary issue delaying the state 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, a local news outlet.

Initially, Moore ed Senate President pro tempore Phil Berger’s attempt to append a casino amendment to the state’s 2023-25 budget bill last fall. This measure aimed to grant gaming licenses to several North Carolina counties.

The Cordish Companies and Casino Licenses

Berger’s amendment proposed awarding multiple casino licenses to The Cordish Companies, known for operating Live!-branded casinos in Maryland and Pennsylvania. He argued that this move would retain legal gambling revenue within North Carolina, preventing it from migrating to neighboring states like Virginia. Legalizing VLTs was estimated to potentially generate approximately $1 billion in annual revenue for the state.

However, Moore cited lingering “hard feelings” from last year’s debates, which have diminished for the initiative.

Despite public backing for introducing casinos in the state, House Republicans remain divided on the issue. Critics were particularly concerned that the discussions seemed to proceed without sufficient public engagement. Consequently, Moore retracted his for Berger’s casino proposal.

Due to the lack of widespread , Berger eventually abandoned his efforts and declared in February that he wouldn’t pursue casino legislation this year, leaving the matter to the House. “If there are folks who decide it’s something they want to pick up and move with, we’ll see,” he commented then. Last month, he reiterated that progress in talks was stalling. Although the North Carolina legislative session runs until July, significant movement now appears unlikely.

Online Sports Betting Sees Early Success

Amid these legislative hurdles, North Carolina’s new online sports betting market is gaining traction. Since mobile sports wagering began in March, the North Carolina State Lottery Commission reported last week that players had already placed over $1.3 billion in bets. In April, the first complete month of operations, operators saw a total handle close to $650 million, comparable to March’s $659 million, and generated $105 million in gross gaming revenue.

Taking promotional bets into , the market saw a month-over-month increase. In March, operators offered over $200 million in bonus bets and promotions, which decreased to below $80 million in April.

April’s gross wagering revenue for the state’s sportsbooks stood at $105.3 million, bringing the total revenue since launch to $171.7 million.

Leading operators such as bet365, BetMGM, DraftKings, ESPN Bet, Fanatics Sportsbook, and FanDuel are all active in North Carolina, each partnering with a professional sports team or venue as per state regulations. Caesars Sportsbook also operates through a partnership with the Eastern Band of Cherokee Indians.

Source:

“North Carolina casino legalization push hits roadblocks”, SBC Americas. May 28, 2024.