Additions to digital lottery games and sports betting sweeping the state

By Kate Northrop

The North Carolina Lottery has officially approved online instant games, to go into effect later this year.

On Tuesday evening, the North Carolina Education Lottery Commission voted to expand its game repertoire by starting to offer digital instant games online.

North Carolina lottery players may start to see new online lottery games beginning this fall or as early as Nov. 15, 2023.

Instant online lottery games are essentially digital scratch-off tickets, similar to ones offered by other states, including Virginia and Georgia.

Online lottery games are not new to North Carolina players, who may already purchase tickets for both the multi-state games Powerball and Mega Millions as well as local in-state games such as Pick 3 and Pick 4.

According to commissioners, sales have relatively slowed down within the last year in periods when huge multi-state jackpots are up for grabs. While the Lottery has seen nothing but sales growth in the past 17 years, Lottery Executive Director Mark Michalko said, there is still the chance sales could plateau or decrease unless they keep their offerings fresh.

"This is necessary," Michalko said of the approval of online instant games. "We need to do this."

Retailers argued that online instant games would take a bite into their own in-store ticket sales. According to a presentation shown at the time of the commission meeting, however, retailers in states where online instant games are available actually outpaced other brick-and-mortar stores located in states that did not offer digital instant games.

Commissioners projected that online instant games could generate over $416 million in five years.

Those who oppose expanding the North Carolina Lottery's online offerings have argued that online gambling is still a gray area in the state, and that digital games may "prey" on those susceptible to problem gambling.

"We, as the commission, do not know what the landscape of gaming is going to be in North Carolina over the next year," commissioner Chris Hayes stated. "There's still a lot of proposals out there in the General Assembly. We could have more responsibility. We don't know what the total handle is. We don't know how many gamblers there are. Introducing new games now with an uneven landscape, I don't think is the right move. I think we need to get a better understanding of what types of games are going to be authorized in North Carolina before we move forward."

Attorney Genera Josh Stein also wrote a letter to the commission in 2020, in which he highlighted the potential for "these types of game" to "prey on vulnerable people and risk real harm to both communities and families across the state."

North Carolina players will have a daily limit of what they are allowed to wager online at a $505 cap. There is also a $2,000 weekly limit and a $4,000 monthly limit.

Legislators also approved online sports betting earlier this year, which may go into effect sometime between January and June 2024. The North Carolina Lottery Commission must approve licenses for operators, which is the primary cause for the wait.

Lawmakers are also discussing the possibility of adding more casinos in some counties and whether to legalize video lottery terminals.