North Carolina looked at regulation daily fantasy sports (DFS) over two years ago but those efforts did not meet with success. State legislators decided to have another crack at passing a DFS bill in 2019 and so far the bill is making progress as the House Commerce Committee recently voted in favour of the new HB 929 .
The DFS bill in 2017 fell through because it could not get enough support from the office of the Secretary of State. One of the main reasons for the lack of support was due to the fact that certain groups were concerned that it would increase gambling in North Carolina.
The 2019 DFS bill has a number of provisions in it that should appease social conservatives in the state. The new bill requires DFS operators to apply for a DFS license and pay a licensing fee to the state. DFS operators who offer their services to residents of North Carolina without a license will be fine and so will licensed operators who fail to comply with state gaming regulations. The fines will go up to $10,000.
DraftKings and FanDuel which are the two biggest DFS operators in America are targeting the North Carolina market already. Rep. Harry Warren who is a co-sponsor of this bill said that this bill would provide more oversight to the market and enable North Carolina to have more control over the DFS market in the state.
New Gambling Commission To Be Established
The new bill also calls for a new gambling commission to be established in the state. As of now, there are multiple agencies responsible for regulating bingo, the state lottery, boxing and raffles in North Carolina.
The 2019 DFS bill calls for a consolidation of these different agencies and the creation of a new gambling commission that will be responsible for all of these industries including the DFS market.
The current response to the bill is positive but legislators are calling for a few amendments to be made. They want the bill to impose a tax percentage on DFS revenues so that the state can profit and also for a percent of revenue to be dedicated to addressing gambling addiction in North Carolina.
The DFS bill has to go through another 3 more committees before it gets to the House floor. Should it clear all these steps, it will then be sent to the Senate for approval.
