The North Carolina State Lottery Commission’s (NCSLC) Sports Betting Committee has released proposed sports betting rules that include a ban on pick’em-style daily fantasy sports (DFS) games.

The state’s Sports Betting Committee began the rulemaking process for the proposed rules on Oct. 17. It has also launched a process to accept public comments on the rules, which will end on November 1.

Sports betting has been officially legalized in North Carolina following governor Roy Cooper. The signed Bill No. 347 became law in June. This follows a series of initiatives to bring sports betting to the Tar Heel State that escalated in the months leading up to the June signing.

The bill would require North Carolina to promulgate sports betting regulations before January 8, 2024. The state must also authorize all sports betting operators to begin taking bets by June 14, 2024.

Now North Carolina joins a number of new states focused on picking DFS games, including New York. New York State Gaming Commission DFS pick-em style games were banned earlier this monthDespite opposition from Underdog Fantasy and PrizePicks.

If North Carolina’s voting ban continues unchallenged, the games will be banned in the state as well.

What does this mean for operators in NC?

North Carolina’s proposed regulations state that fantasy contests consist of “fantasy or simulated games or contests in which one or more fantasy contest players compete and the winning results reflect the relative knowledge and skills of the fantasy contest players.”

The Games, he continues, “are predominantly determined by the accumulated statistical results of the performances of individuals, including athletes, in sporting events.”

This means DFS operators like Underdog Fantasy, based in North Carolina, may have difficulty continuing to operate there once sports betting launches.

But the Coalition for Fantasy Sports, a group representing Underdog Fantasy, Pricks and Sleeper, he reportedly said He said the North Carolina state legislature has ensured that fantasy sports can still be offered in the state.

“When the legislature passed the sports betting law just a few months ago, it ensured that our contests would continue to be offered as fantasy sports,” the coalition said. “We are confident that the Lottery Commission will arrive at common-sense rules that reflect the letter and spirit of this bill.

“We look forward to participating in the rulemaking process as stakeholders, just as we worked with legislators last session to protect the fantasy sports North Carolinians have played for years.”

What does the proposed ban not include?

In the proposed measures, NCSLC said the proposed ban does not include five types of games. These include games based on proposition bets that mimic other types of sports betting, and situations where one person pitches a fantasy team consisting of a single individual or the entire “real world” team.

The ban also excludes games in which the player can decide whether an athlete or a “real world” team will achieve beyond projected statistical success, including points scored.

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