As North Carolina’s sports betting industry takes shape, daily fantasy sports (DFS) operators are pushing back against proposed regulations that would prohibit certain types of contests. During a recent hearing held by the North Carolina State Lottery Commission, representatives from DFS companies Underdog and PrizePicks voiced concerns over a rule that would ban pick’em style contests similar to prop betting.

These companies argue that such a rule goes beyond the scope of the sports betting legislation passed in North Carolina. As Underdog’s General Counsel Nicholas Green pointed out, the legislature could have incorporated restrictive language targeting these types of contests but deliberately chose not to. He emphasized that lawmakers were well aware of how fantasy sports operate in the state, including offerings from companies like Underdog that have been running fantasy contests for years.

The public comment period on the proposed North Carolina sports betting rules remains open until Wednesday. The NC Lottery’s Sports Betting Committee plans to reconvene on November 16th to finalize regulations, with the legal sports betting industry required to launch between January 8th, 2024 and June 14th, 2024.

A draft of rules released earlier explicitly prohibits pick’em style contests, prompting assurances from the Coalition for Fantasy Sports that legislators had guaranteed inclusion of DFS operators within the state’s expanding gaming industry. However, Green stated that “Those efforts were explicitly rejected by the legislature. The proposed regulations seem to reflect the wish list of individuals who did not prevail in the legislative process.”

Despite the uncertainty around DFS regulations, Green confirmed that Underdog still plans to actively pursue one of North Carolina sportsbook promo codes to offer legal sports betting in the state. So the clash over rules for pick’em style contests continues, but major players in daily fantasy sports are not giving up the fight as North Carolina’s sports betting market takes shape.

✅ Fact Checked on January 17, 2024 by Ken Weaver