North Carolina Nears Legalization of Pari-Mutuel Wagering

North Carolina Takes Significant Steps Toward Legalizing Pari-Mutuel Wagering, Retail Sports Betting, and Esports

North Carolina is on the cusp of expanding its betting landscape with new opportunities for pari-mutuel wagering, retail sports betting, and esports. This move could significantly boost the state’s gaming industry while attracting more betting enthusiasts.

On Wednesday, the North Carolina State Lottery Commission’s sports betting committee made a significant move by unanimously approving a notice of proposed rule-making for pari-mutuel wagering. This development sets the stage for legalizing not just horse race betting but also retail sports betting and esports, reflecting the state’s commitment to expanding regulated gaming opportunities.

The commission has now opened a 30-day window for public feedback on the proposed regulations, which will close on October 18, 2024. This period allows stakeholders, from operators to bettors, to voice their opinions and suggestions before the rules are finalized. As the state works through this feedback, the introduction of retail sportsbooks will also gain momentum, though officials have not yet committed to a single launch date for the venues.

Sterl Carpenter, Deputy Executive Director of Gaming Compliance and Sports Betting, emphasized that the opening of retail sportsbooks would occur on a staggered basis. “Each operator and venue will have a unique opening plan,” he explained. This means that the retail sports betting rollout won’t happen all at once but will depend on each operator’s progress in meeting regulatory requirements like lab certifications and on-site inspections.

Pari-Mutuel Wagering on Horse Racing in the Pipeline

Another key focus for the commission is pari-mutuel wagering, especially on horse racing. Although no specific launch date has been set, North Carolina regulators are ensuring the system is developed responsibly. “We plan to present our expectations to applicants and licensees to conduct transparent rule-making,” Carpenter noted. This emphasis on transparency and feedback is reminiscent of the state’s approach to online sports wagering, which was legalized in March 2024.

Expanding Into Esports Betting

In addition to traditional sports, North Carolina is positioning itself to capitalize on the rapidly growing esports market. A petition for esports guidance will be presented at the commission’s meeting on September 25, 2024. The global esports market, projected to reach $7.5 billion by 2031, represents a significant new revenue stream for the state. This addition to North Carolina’s wagering catalog could attract a younger and tech-savvy audience, further boosting the state’s gaming industry.

Early Success with Online Sports Betting

North Carolina’s online sports betting market has already demonstrated considerable success. Since launching in March 2024, the state’s eight licensed operators have processed more than $2.3 billion in wagers. This has generated $275 million in gaming revenue, resulting in $49.5 million in tax revenue for the state. As the state moves toward retail sportsbooks and expanded wagering options like esports, these numbers are expected to grow even further, adding substantial contributions to the local economy.

A Growing Gaming Landscape

As North Carolina advances its efforts to legalize pari-mutuel wagering, retail sports betting, and esports, it is poised to significantly expand its gaming landscape. With public feedback being incorporated into the regulatory framework and retail sportsbooks gearing up for launch, the state is making strides toward becoming a leader in the gambling sector. By tapping into new markets like esports and ensuring responsible gaming practices, North Carolina is setting the stage for sustainable growth in its betting industry.