North Carolina regulators met Tuesday to put forth the first set of sports betting rules for consideration. This initial pass on the rules and definitions surrounding sports betting provided relatively standard rules when it came to sports betting but also notably narrowed the scope of how the state will define fantasy sports going forward.
Here is the new definition of fantasy sports directly from the regulations:
“Fantasy contests” means fantasy or simulated games or contests in which one or more fantasy contest
players compete and winning outcomes reflect the relative knowledge and skill of the fantasy contest
players and are determined predominantly by accumulated statistical results of the performance of
individuals, including athletes in the case of sporting events. Fantasy contests do not include any of the
following contests:
(a) based on proposition wagering or contests that involve, result in, or have the effect of mimicking
proposition wagering or other forms of Sports Wagering;
(b) in which an Individual chooses, directly or indirectly, whether individuals or a single real-world team
will surpass an identified statistical achievement, such as points scored;
(c) in which an Individual submits a fantasy contest team which does not involve the knowledge, skill,
input, or control of such person;
(d) in which an Individual submits a fantasy contest team composed of:
(i) a single individual;
(ii) the entire roster of a real-world team; or
(iii)solely individuals who are members of the same real-world team; or
(e) in which an Individual fantasy Player does not compete against at least one other Individual fantasy Player.
The regulations very clearly define all of the different measures of props-style fantasy as distinctly not fantasy sports including requiring the games to be peer-to-peer and games where users pick whether or not a player will go under or over a given statistical achievement.
Currently, daily fantasy sports are not regulated but are currently operational in the state, including several sites that offer picks-style fantasy contests.
Should those sites wish to offer public comment on the regulations, they have until Nov. 1 to submit written comments to the North Carolina State Lottery Commission. The group will also hold a public hearing on Oct. 27 in Raleigh to hear feedback on this first set of regulations.
Once adopted, the regulations will be set to go into effect on Jan. 8, 2024.
Other elements of the first set of regulations include specifics about what is required for applicants during the licensing process and some rules and conditions about the new law that require operators to sign “written designation agreements” with pro sports teams in order to gain access to a license in the state.
