Affiliate Marketing Among Approved Sports Betting Rules In North Carolina
The North Carolina Lottery Commission has recently approved several rules recommended by the NC Sports Betting Committee. This is the second round of rules approved by the commission. Among the rules are details surrounding affiliate marketing revenue deals between sportsbook operators and marketing companies.
North Carolina Rules Examined
The sports betting committee recommended that affiliate deals could exist in NC but prohibit revenue-sharing agreements. Initially, there was a push to ban NC sportsbooks from partnering with affiliates outright. However, there was pushback against this thinking. The lottery approved rules that would allow for cost-per-acquisition (CPA) compensation agreements amongst sportsbook operators.
Also approved were rules regarding licensing requirements. Operators are required to be in good standing in other markets to claim licenses in North Carolina. The commission will review applicants’ previous market history to determine if they can operate in NC or not.
Required information from applicants are as follows: type of previous licenses, licensing approval date, licensing expiration date, and type of authorized gaming. Applicants will be required to to show they are in good standing with each market and it will be reviewed by the lottery commission during the application process.
Next Steps For North Carolina Sports Betting
The approved rules can go into effect beginning Jan. 8, 2024. There is still no official launch date for when sportsbooks will go live. However, the approved rules show that North Carolina is headed in a positive direction. The lottery commission confirmed that 14 sportsbook operators have requested applications. Regulations only allow for 11 total sportsbooks in online North Carolina. Additionally, 10 service providers and 34 suppliers have also applied for licenses.
Operators need to partner with local teams and venues in order to claim market access. Thus far, bet365, ESPN BET, and Fanatics Sportsbook have secured deals with the Charlotte Hornets, Quail Hollow Club, and the Carolina Hurricanes, respectively. FanDuel also secured market access through a deal with the PGA Tour.
“We are excited to announce this partnership with bet365,” said Jacob Gallagher, Hornets Sports & Entertainment Chief Revenue Officer. “Since the day Governor Cooper signed sports wagering into law at Spectrum Center in June, we sought a partner that would help us provide our fans with new, additional opportunities to engage with their favorite sports teams. We are confident that bet365 is a great fit with our organization and can help us do that.”
With the speed at which North Carolina has been moving, operators need to act fast to claim these licenses.