North Carolina Legal Betting Could Fuel Problem Gambling

North Carolina’s Legal Betting Initiative: March Madness and Beyond

Sports betting will become legal in North Carolina on March 11. That will give the sportsbooks time to get ready for the start of March Madness. But the state is already preparing for an increase in problem gambling.

North Carolina has already tripled the budget for its Problem Gambling Program and there is an additional $2 million scheduled to come from the state’s sports betting tax.

The $2 million will come from an 18% tax on sports betting revenue. The state expects to make as much as $40-45 million annually from North Carolina legal betting.

There are no shortages of colleges in North Carolina. The state is making an effort to reach young people to help with problem gambling concerns.

Addressing Problem Gambling Among Youth in North Carolina

The North Carolina Problem Gambling Program states it “focuses on youth problem gambling prevention because youth are gambling earlier and earlier each year. In addition, adolescents and college-age students have higher prevalence rates for problem gambling than adults.

This means that we are not only providing prevention at younger ages, but we are also focusing our treatment efforts on adolescents and college-age students.”

North Carolina residents have long-supported sports betting. A poll conducted by Elon University in May 2023 showed that 65% of North Carolina legal betting on sporting events.

The top opposition to North Carolina offering online gambling on sporting events came from the N.C. Family Policy Council, which stated as many as 5% of gamblers could “develop a problem or pathological gambling issue.”

Much Work Left Before Start

The state has yet to approve any licenses from different gambling sites to accept sports bets on March 11. So far, the state has received applications from ESPN BET, Caesars Sportsbook, Fanatics Sportsbook, Bet365, Underdog Sports, FanDuel and DraftKings. Bettors can begin making deposits into sports betting accounts on March 1.

Although they’ve yet to be approved by North Carolina, some sportsbooks have already started to advertise in the state. DraftKings and FanDuel started with digital ads over the weekend and DraftKings is starting with its television ads.

The North Carolina Lottery Commission is in charge of overseeing advertising. One of its rules is to make sure companies don’t specifically target those under the age of 21.

The state is estimating a total of $3.9 billion wagered in the first year and $6.6 billion per year by the third year. There will be as many as 12 sportsbooks allowed to operate in the state. There is a $1 million licensing fee and then an additional $1 million due every five years to renew the license.

For gambling news, odds analysis, and more, visit Point Spreads Sports Magazine.

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