North Carolina legislator voices support for igaming legalization

North Carolina House Appropriations Committee senior chair Representative Jason Saine has called on Tar Heel State legislators to follow up the legalization of sports betting by legalizing igaming.

Writing in an op-ed published by The Charlotte Observer newspaper, Saine, who represents Lincoln County and is part of the Republican Party, suggested the legislature look beyond just legalizing brick-and-mortar casinos and give igaming the legislative green light.

At present, legislators are meeting to discuss whether to allow land-based casinos in the state but for Saine, online would be a bigger revenue generator for North Carolina.

“Permitting igaming would ensure North Carolina maximizes tax revenue now and into the future, regulate and make safe a thriving illegal market, and complement traditional brick-and-mortar casinos,” Saine wrote.

“My fellow lawmakers continue to debate what gaming expansion looks like, but limiting this discussion to just brick-and-mortar casinos is a lot like building new movie theaters without allowing people to stream movies on their mobile devices,” he remarked.

As justification, the NC legislator cited industry estimates that igaming could generate as much as $300m annually for the state, creating a “new reliable revenue stream” which would align with existing legislative spending policies.

Saine cited the immediacy at which igaming could be launched in the state, in comparison to the long-drawn-out process of constructing a land-based casino.

“In addition to the benefit of ‘flipping the switch,’ the online sports betting model adopted in 2023 has a lot in common with igaming,” Saine continued.

“That means appropriate consumer protections are already being put in place, along with trusted providers that have gone through a rigorous licensing process in states across the nation.

“Additionally, tax dollars from igaming could be used to expand the responsible gaming programming instituted under online sports betting legislation,” he added.

In tandem, Saine cited that the American Gaming Association (AGA) estimates that North Carolinians gamble as much as $430m in illegal igaming through offshore operators, money which effectively exits the state and is untaxed.

“As lawmakers, we each take an oath to work to protect our fellow citizens. Stamping out a thriving black market and offering consumers a safe, well-regulated way to entertain themselves should be a no-brainer,” he wrote.

“It’s clear that the time has come to make a generational change in state policy, but we have to be holding all the cards when we go all in on gaming expansion, not rolling the dice by picking winners and losers,” Saine added.

North Carolina signed off enabling legislation in June to allow online sports betting in the state from January 8, 2024, in a market that could see as many as 14 operators licensed by the North Carolina Lottery.

North Carolina-licensed operators will be taxed at a rate of 18%, with initial state estimates suggesting more than $22m will be generated in tax revenue during the first year of operation, rising to over $100m by fiscal year 2027-28.