The sports gambling industry will have to wait to do business in North Carolina.
On Wednesday, the House narrowly rejected one of the two bills that would have legalized online sports gambling in the state, a blow for firms circling North Carolina in wait – such as Gambling.com Group (Nasdaq: GAMB), a global company founded by a group of UNC students 16 years ago and that had already staked a claim to the “BetCarolina” moniker.
"This bill was a very reasonable and responsible proposal that is very much in line with laws in the 26 other states that have regulated online sports betting," Gambling.com CEO Charles Gilespie said Thursday. "But it was vilified and misrepresented by bombastic claims coming from a vocal minority. This bill could have increased tax revenue and job growth while bringing safety to a widespread and popular activity. This is far from the end of the debate, and North Carolinians won't stand idle while the overwhelming majority of states make this available to their citizens."
Gambling.com Group, which runs websites that allow consumers to compare online gambling services, was hardly alone in seeing the dollar signs at stake. Jason Robins, CEO of Boston-based DraftKings (Nasdaq: DKNG), recently told investors he was watching what happens in the state. North Carolina was “on the cusp” of getting legalized gambling, he said on a recent earnings call.
“We could get that one,” he said. “That’s a top 10 state, population-wise, I believe.”
Fanatics, too, is likely watching Jones Street. Matt King, former FanDuel CEO and current CEO of Fanatics Betting in Gaming, is also a local alum, having graduated from North Carolina State University.
Already, more than 20 states have approved online sports gambling bills. That includes North Carolina neighbors Virginia and Tennessee.
In a recent interview, Gillespie said that when neighboring states sign on, that’s usually a good sign.
“When you see one state [legalize gambling], the states around it start to take it more seriously,” he said, calling it a “matter of time” before North Carolina signs on.
It could be longer than he anticipated, however, as the concept drew a lot of controversy from legislators Wednesday.
WRAL quotes legislators referencing the Bible, economic inequality and even a North Carolina State University point-shaving scandal from the late 1950s and early 1960s in their opposition.
