March 4, 2024
There appears to be good news from Virginia. The House and Senate worked together to come up with this final bill. We are waiting for the Virginia Governor to act. He has the authority to approve, revise the bill, or veto it. Originally, the House and Senate Bills had some differences. The Governor has expressed he had some concerns on both bills without identifying what his concerns were. Now that the House and Senate have reconciled their two bills, we will wait on the Governor’s actions. All in all, I believe this is good news.
The Governor has seven days, or until March 8, to do one of four things:
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Sign the bill, at which point it becomes law on 7/1/24;
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Veto the bill, which may be overridden by a 2/3 vote in each chamber, starting with the Senate. An override here may be unlikely in the event of a veto. While the Senate voted 31-9, the house tally was 49-43; or
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Send the bill back with proposed revisions to the Senate. The general assembly convenes on April 17 to consider all the governor’s proposed bill amendments/revisions. If both Senate and House approve of the changes by a simple majority vote, it becomes law on 7/1/24. If the chambers object to the changes and each vote by 2/3 to approve the original bill, the original bill as passed becomes law on 7/1/24. If they object to the changes but a vote to approve the original bill doesn’t reach the 2/3 majority threshold, then it goes back to the governor for a decision to either sign the bill as originally passed or veto it; or
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Do nothing, and the bill becomes law automatically on 7/1/24.
If the bill is vetoed or the house fails to agree to any proposed changes, and if the budget bill also remains open, this could get folded into the budget bill as an additional enactment of the way the skill game ban was inserted in June 2022.
Regarding North Carolina video lottery legislation, the leadership in both the House and Senate have expressed a desire to pass the video lottery legislation this upcoming session which begins the last week of April and is supposed to adjourn in July. Based on statements in the press both Senate and House leadership don’t intend to bring up the casino issue during this short session. We’ll be working hard to get this bill passed this session and will keep you posted.
As always, I’m happy to jump on a call to discuss either issue. I look forward to seeing you at the SE Petro show in Myrtle Beach this week.
September 22, 2023
We were very, very close to achieving video lottery legislation in September. Unfortunately, with the legislature combining VLT legislation with controversial casino legislation, the entire issue was pulled from the budget as being too hot to handle for certain members.
We were at the Legislative Building day and night and saw great support for VLTs. We believe it would have passed in the budget and best as a stand-alone bill.
We were told the late addition of casinos, and certain aspects of the proposed casino legislation was too much for the conservative caucus.
Fortunately for the VLT issue, VLTs are considered by most to be the only solution to a 20-year issue with unregulated gambling and generate a great deal of revenue for the state. They will need that revenue for their tax cut goals and projected budget deficit in 2027, which will be about the time a substantial number of VLTs will be online and the state will be realizing a big portion of the expected revenue. There may be an opportunity to pass VLT legislation in October, and there certainly is starting in April 2024 in the short session. We will stay on top of this issue until we get this done.
September 5, 2023
Budget negotiations continue between the House and Senate, with voting on the budget to begin the week of September 11th and wrap up September 14th.
The latest information continues to suggest that the budget will include provisions for video lottery terminals (VLTs), with their projected revenue playing a significant role in the budgetary process. The establishment of four casino and entertainment districts in rural counties are still being considered, although specific details surrounding this remain unclear.
Governor Cooper’s position regarding a potential veto of the budget remains uncertain. His preference for allocating funds towards Medicaid expansion, which is expected to be part of the budget, adds a layer of complexity to this decision.
The House overrode several of the governor’s vetos on five separate matters and passed legislation to restrict the governor’s authority to appoint members to state commissions.
Shifting focus to North Carolina gaming; The North Carolina Court of Appeals has thrown out an injunction in a Forsyth County case involving gaming devices. So law enforcement are no longer enjoined and are free to prosecute the games. Law enforcement officials in Columbus and neighboring counties maintain their position related to cease and desist letters they issued to businesses operating illicit game machines. These establishments are being granted a period of time to cease their operations involving these game machines, failure of which may result in legal actions for engaging in unlawful gambling activities.
August 31, 2023
Budget negotiations continue between the House and Senate, with voting on the budget to begin the week of September 11th and wrap up September 14th.
The latest information continues to suggest that the budget will include provisions for video lottery terminals (VLTs), with their projected revenue playing a significant role in the budgetary process. The establishment of four casino and entertainment districts in rural counties are still being considered, although specific details surrounding this remain unclear.
Governor Cooper’s position regarding a potential veto of the budget remains uncertain. His preference for allocating funds towards Medicaid expansion, which is expected to be part of the budget, adds a layer of complexity to this decision.
The House overrode several of the governor’s vetos on five separate matters and passed legislation to restrict the governor’s authority to appoint members to state commissions.
Shifting focus to North Carolina gaming; The North Carolina Court of Appeals has thrown out an injunction in a Forsyth County case involving gaming devices. So law enforcement are no longer enjoined and are free to prosecute the games. Law enforcement officials in Columbus and neighboring counties maintain their position related to cease and desist letters they issued to businesses operating illicit game machines. These establishments are being granted a period of time to cease their operations involving these game machines, failure of which may result in legal actions for engaging in unlawful gambling activities.
August 14, 2023
Negotiations are ongoing between the House and Senate, with a budget anticipated to be finalized either during the first or second week of September.
The latest information suggests that the budget will include provisions for video lottery terminals (VLTs), with their projected revenue playing a significant role in the budgetary process. Additionally, there are indications that the budget might encompass the establishment of four casino and entertainment districts in rural counties, although specific details surrounding this remain unclear.
The stance of Governor Cooper regarding a potential veto of the budget remains uncertain. His preference for allocating funds towards Medicaid expansion, which is expected to be part of the budget, adds a layer of complexity to this decision.
On August 16, the House is scheduled to conduct veto override votes for four separate matters. This development highlights a forthcoming decision-making juncture in legislative proceedings.
Shifting focus to the gaming sphere, the North Carolina Court of Appeals has ruled that the Ocean Fish King game machine constitutes an illegal game of chance. Concurrently, law enforcement officials in Columbus and neighboring counties have initiated the process of dispatching cease and desist letters to businesses operating illicit game machines. These establishments are being granted a period of time to cease their operations involving these game machines, failure of which may result in legal actions for engaging in unlawful gambling activities.
July 1, 2023
Sports betting passed in North Carolina by an overwhelming vote and the governor quickly signed it into law, demonstrating an appetite for gaming expansion.
In regards to video lottery, as of today, the North Carolina Senate and House continue to work together on budget issues so the session has and will be extended.
The legislature recessed this week for the 4th of July holiday and plan to resume the week of the 11th or the 18th, depending on how negotiations go amongst leadership over the next week. The hope is to get a consensus on the budget by the end of July but if not, it could very well go into August or even later.
Casinos have entered the picture: Senate leadership has been working on legislation that will allow a casino in four tier 1 counties, one intent being to stop NC money from crossing the Virginia border to Virginia casinos. There does however seem to be some resistance by some House members about casinos, especially amongst members from very conservative districts. We will have to wait to see how that plays out.
We believe the desire to pass video lottery legislation still remains strong in both House and Senate and it's expected that VLTs will be in the finance package to help fund the budget. Follow us for real-time legislative updates.
June 2023
North Carolina General Assembly Legalizes Sports and Horse-Race Wagering
Southland Entertainment is happy to announce a groundbreaking development in North Carolina's gambling landscape. The North Carolina General Assembly finalized legislation, paving the way for statewide authorization and regulation of sports and horse-race wagering. This momentous decision makes North Carolina the 10th biggest state in the country to embrace this thrilling industry.
Following an impressive 68-45 vote for the bill, with the Senate's final changes, Gov Roy Cooper signed the legislation into law. Gov Cooper had previously communicated his support for legalized sports gambling, leaving almost certain he would sign the act into law. This legislation will authorize and properly regulate online betting on professional, college, and Olympic-style sports and allow wagering for grown-ups aged 21 and over. The execution of these new provisions is projected to start within the following six months to a year.
The bill had overwhelming support, with almost 50% of the House's members supporting the bill from its commencement, and it, at last, got bipartisan support moving into the two chambers of the Republican-controlled legislature. Currently, legal sports gambling in North Carolina is only accessible at the state's three casinos, operated by two American Indian tribes. Apart from a lottery introduced in 2006, there are limited avenues for legal gambling within the state. Recognizing the prevalence of illegal sports betting activities through offshore platforms or unauthorized bookies, the bill sponsors said that such activities' authorization, regulation, and taxation are the most effective means of control.
Speaking on the "Ovies & Giglio" podcast show, Governor Cooper expressed his enthusiasm for the legislation, stating, "This is something that has been going on. The North Carolina taxpayers should get the benefit of this. It's pretty good legislation now."
While preparations are underway for betting to commence as early as January, the newly established commission responsible for overseeing this sector will have until June 2024 to finalize the necessary arrangements.
Notably, approximately half of the nation’s states already permit mobile or online sports betting, including North Carolina's neighboring states, Virginia and Tennessee. Representative Jason Saine, a chief bill sponsor, emphasized the impact of neighboring states' gambling offerings on North Carolina's economy, stating that the loss of revenue to other states played a significant role in garnering support from colleagues who may not have considered the legislation previously.
Under the legislation, the North Carolina Lottery Commission will manage these new gambling options. The commission will issue up to 12 interactive sports wagering licenses to entities subject to rigorous background checks and a $1 million application fee.
Moreover, the legislation enables the opening of sportsbooks at or near prominent professional sports venues, such as NASCAR racecourses and major golf tournaments. Individuals can make cash bets at these locations without needing online accounts through operating betting companies.
The bill's final version also grants separate licenses for horse-race operators to offer thoroughbred racing, with the commission empowered to establish regulations for live horse racing within the state.
The legislation stipulates a tax rate equivalent to 18% of gross betting revenue minus winnings for sports wagering. Although an earlier proposal in the House suggested a similar 14% tax rate with more deductions, the final version was adopted. Legislative analysts estimate that, following expenses, the state stands to generate $71 million annually by mid-2028 from both sports wagering and horse racing. Substantial portions of the tax revenues from sports wagering will be allocated to local, regional, and state athletics initiatives, athletic programs at most University of North Carolina system schools, and problem-gambling programs.
This momentous legislation denotes an intriguing new part for North Carolina individuals, offering expanded legal gambling opportunities and the potential for significant monetary advantages. Stay tuned for additional updates as we constantly work to help shape and support the state's new era of dependable and controlled gambling.
