The Risks of Illegal Sports Betting in North Carolina

North Carolina is set to be one of the next states to launch legal online sports betting in the United States. Governor Roy Cooper signed HB 347 into law on June 14, 2023, which opens the state to sportsbooks starting as early as January 2024. One of the key talking points made by Governor Cooper in signing this landmark legislation was that sports betting is already illegally taking place in North Carolina.

Cooper supports legalizing North Carolina sports betting as a way to capitalize on significant tax income opportunities, but just as importantly, to provide would-be sports bettors a safe alternative to illegal offshore books. Illegal sports betting poses a multitude of risks to players. These risks can be mitigated by regulating the industry within the state, which is only possible through legalization.

The Scope of Illegal Sports Betting in the United States Today

How big of an issue is illegal sports betting in America? It’s big. According to a 2022 report by the American Gambling Association, illegal sports betting in the United States led to the following eye-popping numbers:

$63.8 billion in total handle
$3.8 billion in total revenue
$700 million in lost state tax revenue

It is no surprise that fans are betting on sports illegally. Sports betting has only been legal in the country since 2018, when the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA). Since 2018, states have been free to allow (or not) sports betting at the state level. Many states have chosen to pass legislation to legalize betting, and many still have not. As such, those residents living in states without legal means of placing sports wagers have found alternatives, like offshore books or illicit bookies.

The same study also notes that 49% of the respondents in their polling reported having placed a bet with an illegal operator in the past year. Of that 49%, 34% claimed to use legal and illegal channels to place sports bets, while 15% used illegal channels.

Illegal sports betting is not just an issue of a lack of available legal channels, as the AGA data suggests. It also points to a potential lack of knowledge regarding the dangers of illegal sports betting. This is especially true for those who claim to legally and illegally bet.

The arrival of legal sports betting in North Carolina in 2024 provides the perfect opportunity to educate Tar Heel State residents about the dangers of illegal betting.

Reasons to Stop Illegal Sports Betting in North Carolina

If you are one of the many North Carolina residents currently betting on sports illegally, consider the following risks and choose to wait until legalization in 2024 to wager safely.

Sports Betting Is Still Illegal In North Carolina

Let’s start with the basics. Online sports betting is still illegal in North Carolina. Betting with offshore books or local bookies is not prohibited under any circumstance. Illicit gambling is a Class 2 misdemeanor in the state, which carries a possible sentence of up to 60 days in jail and a $1,000 fine. There’s no point in taking the risk on illegal sports betting channels when legalization is right around the corner!

Illegal Sports Betting Is Not Regulated

This probably goes without saying. Offshore books and in-state bookies operate outside of the state’s purview. As such, no regulations are in place to assure fair practices and user safety. It is not uncommon for these entities to offer unfavorable odds on betting markets that make it easier for bettors to lose money. New user promotions are more likely to feature extravagant play-in requirements to claim bonus offers. Illegal sports betting channels have no incentive to treat players fairly, so they can stack the deck to their benefit.

No Legal Recourse For Foul Play

Aside from no player protections on things like odds and new user bonuses, illegal sportsbooks cannot be subject to any legal recourse for predatory actions. If a book or bookie steals money from a player or refuses a payout, nothing can be done about it. Players have no legal avenue to pursue to make things right with a book since they are participating in a betting channel outside the law. Any player who is sports betting illegally is at serious risk for theft.

Personal Information At Risk

At this point, it should be obvious that offshore sportsbooks or illicit bookies do not have your best interest at heart. That said, utilizing illegal platforms will also likely put your personal information at risk. Never share bank account data or personal identification numbers that could lead to identity theft. Regulated sportsbooks, like those set to launch in January 2024 in North Carolina, are legally required to secure all players’ personal information. This layer of security cannot be understated.

Predatory Practices

Unlike sportsbooks that operate within the confines of the legalized sports betting industry, illegal books and bookies do not have to verify the age of their players. This opens the door for them to target young players who are most vulnerable to becoming addicted to sports betting. These are also the ones that are likely to be the least financially stable. Preying on high school and college-aged students through online forums, like social media, is a popular avenue of recruitment for illicit sports betting channels.

No Responsible Gambling Initiatives

Responsible gambling is a fundamental element of every legal sportsbook. States have overwhelmingly required sportsbooks to provide self-exclusion options and gambling addiction support for their players as a condition of legalizing online betting. The same will be true for sportsbooks that will be allowed to launch in North Carolina. While no one wants to believe that addiction will happen to them, it is important to have resources available to help mitigate risky behaviors. It goes without saying that illegal sportsbooks will not offer this type of support.

As demonstrated above, the downside of illegal sports betting in North Carolina far outweighs any potential upside. There are countless risks without any tangible benefits. The nature of sports betting is risky, but waiting for North Carolina to regulate the industry in 2024 gives residents security that they’ll be treated fairly and given the tools they need to stay safe.

Prepare for Legalized Sports Betting in North Carolina with Action Network

The countdown to legal sports betting in North Carolina is officially on. Action Network wants to help residents prepare for the launch by providing a strong betting foundation. Be sure to check out our sportsbook guides for some of the best North Carolina betting apps that we expect to launch this year:

Have fun, and stay safe!