The legislation now advances to the House, which previously failed to advance an identical sports betting bill out of committee.
Senate Bill 688 passed the North Carolina upper chamber by a vote of 26-19. Nine Republican senators joined 17 Democrat colleagues in approving the bill.
The bill would authorize the North Carolina Education Lottery commission to issue between 10 to 12 interactive operator licenses. Operator gross revenues would be taxed at 8%.
Operators would be required to pay a $500,000 license fee, renewable for $100,000 at five years.
The Senate approved an amendment requiring the lottery commission to transfer $1m to the North Carolina Health and Human Services to support problem gambling addiction programs.
Proponents of the legislation say it would fund the state’s education system and cut down on illegal black market sport betting.
“I look at this as more of a voluntary tax from people already taking place in that market,” said bill sponsor, Sen. Jim Perry (R-Lenoir County), according to The News Observer. “We know they’re already spending — choosing to spend their money that way. And I believe I owe it to the people I represent to try to find alternative means to meet the needs of the community.”
Opponents of the bill say it would increase gambling addiction in the state.
North Carolina lawmakers lean socially conservative, and most Senate Republicans opposed the bill.
The test now will be in the House, where Republicans hold a 69-51 vote advantage.
"There is a healthy bipartisan group of House members who are opposed to gambling, including me," Rep. Pricey Harrison (D-Guilford) told the Winston-Salem Journal. "I don’t see how the bill moves through the House this year. It’s a big change for North Carolina, and it needs thorough vetting and deliberation."
