Gambling Laws of North Carolina Legal State of Gambling

The Legal Gambling Status in North Carolina

In North Carolina, the gambling landscape is a blend of both permissive and restrictive regulations. As of now, sports betting has made significant strides towards legalization, with regulators finalizing rules in December 2023, inching closer to permitting online sports wagering. Online casinos remain prohibited. Bingo enjoys a more lenient status and is permitted for charitable and tribal purposes. The state lottery is also legal and offers various games, including scratch-offs and multi-state drawings like Powerball and Mega Millions. Parimutuel betting on horse racing is allowed, albeit in a limited capacity, primarily at the lone licensed racetrack in the state, offering opportunities for betting on live and simulcast races. Despite ongoing changes in the gambling landscape, North Carolina maintains a cautious approach, selectively permitting certain forms of gambling while imposing restrictions on others.

Legal Gambling Forms in North Carolina

In North Carolina, several forms of gambling are legally permitted within specific parameters. The state's legalized gambling landscape includes a lottery that was established in 2005, allowing various games such as scratch-offs and multi-state drawings. Bingo is permitted for charitable and tribal purposes, with regulations in place to govern its conduct. Parimutuel betting on horse racing is also allowed but in a limited capacity, primarily at a single licensed racetrack for both live and simulcast racing events. It's important to note that while the state has embraced certain forms of gambling like the lottery, bingo, and limited horse racing betting, other activities such as commercial casinos and online casinos remain illegal under current North Carolina law.

The legal gambling age in North Carolina for participating in lottery games, bingo, and parimutuel betting on horse racing is 18 years old.

Legalization of Lotteries in North Carolina

Lotteries in North Carolina were legalized in 2005 after the state passed legislation allowing the establishment of a state-run lottery. The first tickets went on sale in March 2006, marking the beginning of the state's lottery program. North Carolina's lottery operates various games, including scratch-off tickets and multi-state drawings such as Powerball and Mega Millions. Proceeds generated from lottery sales contribute to funding education initiatives in the state, supporting areas like school construction, scholarships, and educational programs. Players can purchase lottery tickets from authorized retailers across the state, participating in various games for the chance to win cash prizes while also contributing to educational causes in North Carolina.

Gambling in North Carolina – Licensing, Tax and Fees

In North Carolina, the taxation framework for gambling activities varies across different forms of wagering. For operators involved in sports betting, a tax rate of 18% on all gross gaming revenues has been established, accompanied by a mandatory $1 million licensing fee. This tax structure aims to generate revenue for the state from the burgeoning sports betting industry. Conversely, when it comes to the state lottery, one of the most popular legal forms of gambling in North Carolina, winnings are subject to a 5.25% tax rate. This tax is applied to lottery winnings in the same manner as other income, highlighting the state's approach to taxation across different gambling sectors.

North Carolina's oversight of gambling activities involves a compact with two federally-recognized Indian tribes: the Eastern Band of Cherokee Indians and the Catawba Indian Nation. The Eastern Band of Cherokee operates two Class III tribal casinos within the state, regulated by the National Indian Gaming Commission. These tribal casinos offer various gambling options, including casino-style games and sports betting in compliance with their compacts with the state. This compact arrangement reflects the collaboration between the state government and tribal entities, shaping the regulatory landscape and legitimizing certain forms of gambling within the state under specific guidelines and agreements.