North Carolina Regulator Releases Second Rules Package

November 9, 2023
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North Carolina’s latest round of draft regulations for mobile sports betting includes provisions that are inspired by the recent actions of other states, such as limitations on advertising on college campuses and bonus promotional language.
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North Carolina’s latest round of draft regulations for mobile sports betting includes provisions that are inspired by the recent actions of other states, such as limitations on advertising on college campuses and bonus promotional language.

The Sports Betting Committee of the North Carolina State Lottery Commission approved a Notice of Rulemaking on Tuesday (November 7) for its second rulemaking package relating to launching mobile sports betting in the state.

The first package was released last month and is set to be considered by the committee again on November 14, and then by the full commission on November 16.

The latest set of rules outlines the state’s sports wagering guidelines, and includes a host of provisions that have become popular among states that have recently adopted their own sports-betting regulations.

One is a provision that prohibits the advertising or marketing of sports betting on any college or university campus, as well as in college news outlets, such as school newspapers or college radio and television broadcasts.

That provision will be especially meaningful in a state like North Carolina, where collegiate sports are incredibly popular, with Duke and North Carolina’s basketball teams being among the most popular teams in the United States.

Another rule would prohibit the use of the term “risk-free” or “free” to describe bonus promotions where the player must incur a loss or risk their own money in order to capitalize on the promotion.

Those provisions have been enacted in several other states that have launched sports betting in the past year, including most notably Ohio and Massachusetts. 

Potential mobile operators in North Carolina are required to enter into a “written designation agreement” with one of the state’s professional sports teams, a PGA golf course, or a NASCAR racetrack to obtain market access into the space.

The home stadiums and arenas, as well as the golf course or racetrack, are also permitted to host a “place of public accommodation” for in-person wagering. 

However, the draft regulations would prohibit operators from owning the naming rights to any of the facilities eligible to host in-person wagering, or naming rights to any physical location within the facility other than the wagering location.

A public hearing will be hosted at the lottery’s headquarters on November 20, and public comments on the rules will be accepted through November 27, 2023.

Online sports betting in North Carolina is required by law to begin no later than June 14, 2024, and lottery officials have maintained in recent weeks that they are on track to meet that deadline.

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