Online Gambling License in North Carolina

The North Carolina State Lottery Commission is responsible for licensing and regulating sports betting and horse racing betting as per the Sports Wagering and Pari-Mutuel Wagering law.

The Commission has a total of 9 members in addition to the Staff of the Executive Director, Chief Regulatory Officer, Chief Financial Officer, and the Chief Legal Officer.

The Commission works as an independent, self-supporting agency and collects revenue on its own. It is in charge of licensing and regulation of all legal betting in the state – sports betting, lottery, and horse racing betting. The Commission implements new rules that wagering licensees must follow and ensures licensees meet those requirements. This includes regulating wagering, reviewing and issuing licensing applications, and ensuring practices for responsible gaming are in place.

Types of Gambling Regulated by the North Carolina State Lottery Commission

Sports Betting

As part of its licensing responsibility, the Commission issues three types of business licenses concerning sports betting:

• Interactive Sports Wagering Operator License – Issued to operators that offer sports event betting services. A licensed Interactive Sports Wagering Operator is deemed to also hold a Service Provider license and a Supplier license for services, goods, software, or components provided in-house.
• Service Provider License – Issued to businesses that provide covered services to an Operator that creates sports wagering markets and determines sports wager outcomes. This usually includes managing bets and other similar software.
• Supplier License – Issued to companies that provide services, goods, software, or other components to Operators or Service Providers licensees.

An applicant must pay the corresponding fee for each type to obtain a license. For an Operator License, the fee is set at $1,000,000. A Service Provider License costs $50,000, and a Supplier License costs $30,000. Considering the high application fee, if the request is denied, they will receive the fee (minus 5%) back.

To obtain a license, the applicant must fill out the form, pay the fee, and undergo a complete background check by the Commission. The final decision on the license is normally issued within 60 days of the receipt but can be extended by 30 more days.

Tribal Casinos

North Carolina’s tribal casinos are operated by the Eastern Band of Cherokee Indians and the Catawba Indian Nation. The established compacts determine the games the tribe can offer and other gambling activities allowed. The tribal casinos in North Carolina, including Harrah’s Cherokee Casino Resort and Harrah’s Cherokee Valley River, offer Class III gaming.

Each tribe has its own gaming commission that handles the day-to-day regulation of the casino operations. The NIGC oversees the operation of all tribal casinos and the individual tribe commissions. The North Carolina Commission, on the other hand, doesn’t play a direct role but audits and ensures that compact terms are followed, with an emphasis on revenue sharing.

Lottery

The lottery is mainly regulated by the North Carolina State Lottery Commission, which oversees the operation of the North Carolina Education Lottery. The Commission ensures that all lottery activities are conducted legally and responsibly. The Lottery Commission approves the games which at the moment include lottery draws such as Mega Millions and Powerball. It also sets rules for drawings, the winning odds, and overall game rules. The Commission oversees the revenue distribution and ensures that the majority of the profits are allocated toward educational programs.

Pari-Mutuel Wagering

Although the law predicts regulating some forms of horse racing and pari-mutuel wagering, at the moment, there are no licensed horse racing operators, and no sports betting operators accept bets of this nature.

Regulatory Framework of the NCSLC

The Commission operates under several laws and statutes. Its main roles come from the North Carolina State Lottery Act. This act is part of the NC General Statutes, Chapter 18. The legislature passed it in 2005. It defines the Commission’s purpose in §18C-112 and outlines its responsibilities.

In §18C-130, the law lists the games the Commission oversees. This includes scratch-offs and draw games. This section also allows the Commission to regulate and approve games.

§18C-134 and §18C-164 explain how to allocate revenue from betting activities. Most of this money goes to public education. The law requires that 50% of the revenue goes to prize money. Additionally, 35% of lottery revenue funds certain educational programs.

For sports betting, Session Law 2023-42 (H347) is important. The NC General Assembly passed it on June 8, 2023. This law lets the Commission regulate betting on professional, amateur, and college sports, as well as horse racing. The governor signed it on June 14, 2023. It established the North Carolina State Lottery Commission as the state’s licensing body for these activities.

Another important document is the North Carolina Administrative Code. In Title 14B, Chapter 03, the State Lottery details the licensing process for retailers. This section also outlines the laws and gives the Commission oversight of gaming-related marketing.

Another important law is the Public Records Law § 132-1. This law establishes transparency for all operators.

The Auditing and Financial Oversight law is also significant. It explains how the NCLC undergoes audits by the State Auditor. This ensures complete financial transparency, among other things.

FAQs about the North Carolina State Lottery Commission