Industry Debates Federal Problem Gambling Funding
The North Carolina sports betting industry is embroiled in a debate over the federal funding of gambling addiction efforts. Underdog Sports, an online sportsbook in the state, has taken a unique stance by endorsing the Gambling Addiction Recovery Investment and Treatment (GRIT) Act, despite facing criticism from other industry players.
The GRIT Act proposes using half of the federal sports betting tax, which is 0.25% of total bets, to fund addiction prevention and treatment programs. Underdog Sports sees this as a positive step towards responsible gambling and has praised the Act as the only source of federal funds dedicated to this cause.
With the launch of online sports betting in North Carolina on March 11th, residents are eagerly awaiting the opportunity to place their first wagers. Sportsbook operators are trying to entice customers by offering generous promotions such as risk-free bets, deposit matches, and free bets. For example, DraftKings is offering a promotion where new sign-ups can bet $5 and get $200 in return. These promotions not only help kickstart the market but also allow operators to acquire new customers.
However, amidst the intense competition among sportsbooks, the state of North Carolina is ensuring that responsible gambling oversight is in place. The Problem Gambling Program Fund taxes operators and provides protections for those who may be at risk of developing a gambling addiction. This delicate balance between competition and responsible gambling oversight characterizes the exciting but complex new frontier of North Carolina sports betting.
Possible North Carolina Funds from the Act
The exact amount of funds that North Carolina will receive under the GRIT Act remains unclear. However, it is known that half of the federal sports betting tax will be allocated to responsible gambling efforts. Of that money, 75% will go to state health departments, while the remaining 25% will fund research grants.
Obtaining precise federal tax income numbers for sports betting has proven to be challenging. According to Cait Huble, the Communications Director of the National Council on Problem Gambling, data for the fiscal year 2023 is currently unavailable. However, she estimates that the revenue for the fiscal year 2022 was around $274 million. With more states launching sports betting in 2023, it is expected that the revenue for the fiscal year 2023 will increase.
However, Adam Hoffer, an excise tax expert from the Tax Foundation, disagrees with this estimate. He puts the revenue for the fiscal year 2023 at $260 million.
If the revenue does indeed reach $260 million, the GRIT Act would allocate $130 million towards problem gambling. Out of this amount, $97.5 million would be designated for states, taking into consideration their specific needs, and $32.5 million would fund research.
Debating The Ultimate Approach in North Carolina
The GRIT Act has sparked a debate on how to address problem gambling on a federal level. Many stakeholders have vested interests in the outcome of this debate, but supporting responsible gambling seems to be the morally right thing to do.
Amidst the arguments surrounding the Act, residents of North Carolina can rely on the state’s sports betting taxes to fund addiction prevention and treatment. Online revenue from sports betting raises approximately $2 million annually for these efforts.
As North Carolina enters the world of online sports betting, it is crucial to strike a balance between promoting a thriving industry and ensuring that measures are in place to protect individuals who may be susceptible to gambling addiction. The endorsement of the GRIT Act by Underdog Sports showcases a commitment to responsible gambling and sets a positive example for other industry players. With proper funding and oversight, North Carolina can pave the way for a safe and enjoyable sports betting experience for its residents.