North Carolina Takes Measured Approach to Minimize Sports Betting's Risks

Written by:
Payton
Published on:
Feb/17/2024

As North Carolina prepares to launch online sports betting on March 11, 2023, the state shows strong commitments to responsible and ethical gambling initiatives. Leading up to the launch, North Carolina’s government, universities, and health organizations worked to research problem gambling and provide solutions.

Significant Funding Increases Show Prioritization

In 2021, North Carolina only had $1 million budgeted yearly for gambling addiction education and treatment through the Department of Health and Human Services (DHHS). However, the new sports betting law passed in 2022, House Bill 347, now allocates $2 million annually for these DHHS programs. This brings the total yearly budget to $3 million.

The 300% funding increase shows North Carolina prioritizing responsible gambling planning. And the bill also makes gambling addiction programs the top priority for spending sports betting tax revenue.

Sara Tait, a lawyer specialized in gaming law, says North Carolina's "attention paid to responsible gaming” has been encouraging. She thinks continued responsible gambling efforts by the state and industry are important going forward. But this can’t be a one-time boost to programs before the launch. Progress will require ongoing, earnest commitment to ethical best practices.

North Carolina Surpasses National Gambling Addiction Support Averages

Compared to other states already offering sports betting, North Carolina had above average gambling addiction services even before its launch. A 2021 national survey found North Carolina had 74 licensed counselors specifically for problem gambling treatment and counseling.

This far exceeded states like Kentucky and Louisiana, which only had five specialized counselors each when launching sports betting. Those states are now facing backlash for failing to prepare for compulsive gambling risks from consumers and industry watchdogs.

With the new $3 million budget, North Carolina can further expand its counseling and treatment options. And the state seems committed to data-driven adaptation of services, not just an initial burst of expanded offerings. However, helping citizens access those resources remains an ongoing challenge.

Targeted Outreach Efforts Key to Reaching Vulnerable Demographics

Dr. Michelle Malkin, an East Carolina University professor studying responsible gambling, estimates over 500,000 North Carolinians likely suffer from some level of gambling addiction already. Even with more funding, under $1 per person would go toward treatment based on the at-risk population.

Hard-to-find help has been a national issue with gambling addiction. North Carolina offers resources covering all ages and situations. But work is still needed to actively promote services directly to vulnerable groups. Responsible gambling experts nationwide agree that targeted outreach is most effective for measurable impact on at-risk demographics.

According to CarolinaPlays.com, North Carolina college students represent one especially vulnerable demographic when it comes to problem sports gambling. Their proximity to college athletics and tendencies to gamble recreationally significantly increase risks once betting becomes easily accessible.

Required Gambling Education Coming to Campuses

Seeing the risks college students face, North Carolina is taking action to educate students on safe sports betting habits before the launch. EPIC Risk Management will hold mandatory gambling education seminars at four North Carolina universities in 2024:

 

  • Duke University
  • High Point University
  • UNC Pembroke
  • East Carolina University

 

Outreach initiatives like these on-campus seminars can make real progress toward responsible gambling adoption in North Carolina. But success will rely on the state continuing to assess challenges facing different groups and provide practical solutions tailored to each.

Long-Term Solutions Still Needed to Address Compulsive Gambling

While North Carolina's current responsible gambling efforts lead most states, risks remain ever-present with the launch of a major new gambling format. Resources must adapt over time to effectively address new challenges before they become dire crises requiring reactionary measures.

Tait said North Carolina will hopefully see "continued growth in responsible gaming initiatives over the coming months and years." Consumer wellbeing and ethics rely on responsible gambling. So progress cannot stall once the initial launch boost in services and funding ends.

The new $3 million DHHS budget is a good starting point. But it may still prove insufficient long-term if compulsive gambling continues growing. Strong tax revenue from sports betting itself could allow further investment in addiction services. But excess funds typically go toward education funding first.

If needs eventually outweigh the budget, the state may need to reassess revenue allocations. But for now, officials seem earnestly committed to an ethical sports betting expansion. And existing treatment services should provide North Carolinians struggling with gambling important support options.

The keys will be continuing the diligent planning North Carolina has shown so far and not treating the launch like the finish line for responsible gambling efforts. Sports betting can buoy state budgets, but should not come at the cost of citizens’ financial and mental wellbeing due to unchecked gambling addiction.

 

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