Legalizing Online Sports Betting in N.C. Should Balance Economic Growth with Some Regulation
A man looks at sports betting statistics. Source: Wikipedia
On Mar. 11, 2024, North Carolina passed House Bill 347, which legalized online sports betting for the first time in the state.
The legislation sparked lots of online conversations and spurred a mass of online betters to engage in the opportunity to participate in the betting process as people determine what effects legalizing online sports betting will have for both individuals and the State, and how North Carolina should seek to regulate the Bill in the future.
Within the first week, North Carolinians put forth a strong start, betting nearly $200 million on sporting events. Overall, the economic impact holds great promise. In North Carolina alone, the Bill is predicted to generate $800 billion in gross gaming revenue. With the creation of new jobs, more money flowing through North Carolina’s economy, higher tax revenue, and the potential for individuals to have the opportunity to have access to economic gains that weren’t applicable before online sports wagering was allowed.
“The legalization of sports betting will provide a significant boost to North Carolina’s economy and will allow our thriving sports industry to continue to grow,” said Governor Roy Cooper, North Carolina.
The act seems to be very popular with the public, especially as the bill was passed right before the NCAA March Madness tournament. However, there is much backlash against the legalization.
However, some worry that legalizing sports betting online might encourage gambling for people who might not have previously participated in the act. Primarily, public health officials have voiced concerns about increased gambling addiction problems for people in states where sports betting is easily accessible and legalized.
In response, House Bill 347 includes a provision increasing state funding towards gambling addiction services and helplines including $2,000,000 annually to the Department of Health and Human Services for gambling addiction education and treatment programs.
While this funding will directly help those with gambling addiction problems, it merely acts as a form of relief for individuals who have already been affected by gambling addictions and doesn’t address the root of the problem:allowing people to gamble in the first place. The legalization of online sports betting could create issues with gambling addictions; however, the bill also has great potential to untap a previously hidden market.
Part of the legalization of online sports betting comes with the creation of important jobs and gives people alternative outlets to produce personal revenue that was not previously available. Specifically, sports betting is a key economic development that can help stimulate economic activity in the state of North Carolina.
For example, when the bill was passed in North Carolina, the governor responded by placing a bet on the state’s Hurricanes hockey team to win the 2024 Stanley cup, in which the winnings would be donated to children’s charity organizations.
Since the legislation is relatively new, people are still unsure of how the legalization of online sports betting will affect the economy and individuals in the long term.
The passed legislation might encourage some people to participate more in gambling and it also might cause concern for people to develop and exacerbate new addictions. Before the bill was even legalized, 6% of people suffered from some form of gambling addiction.
This bill might have some negative outcomes, but the legalization of sports betting could also allow sports to become much more integrated into the economy. It was found that ⅔ of people who bet on NFL games claimed they were more likely to watch a game if a bet was involved. When consumers bet on a game, the stakes are raised and can even increase viewing popularity among consumers who wouldn’t previously watch the sport.
When looking at how to regulate online sports betting, it is also important to consider both sides of the effects of legalization. It is important to balance the potential downsides for individuals with some form of gambling addiction and the benefits that sports betting may generate for individual parties and the economy.
Ultimately, the state of North Carolina should put some additional laws in place with the legalization of sports betting, whether it be through taxation on earnings, limiting usage, running some background checks, or putting more money into gambling relief. By holding stakeholders of sports gambling more responsible for their bets while simultaneously stimulating economic activity, North Carolina might be able to provide both support for funding gambling addiction relief services and generate economic benefits for the state.
The future of North Carolina in the aftermath of the legalization of online sports betting is still uncertain. At least for now the excitement around being able to place a bet on and root for a favorite team or player definitely raises the stakes for athletes and audiences of sporting events and could even make sports media a bit more exciting to watch.