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DATE: March 20, 2024 AGENCY: North Carolina State Lottery Commission ACTION: Notice of Proposed Rulemaking

DEADLINE FOR SUBMITTING COMMENTS:

April 19, 2024 PUBLIC COMMENT SESSION: Tuesday, April 9, 2024, at 9:00 a.m. ET, located at the North Carolina State Lottery Commission Headquarters, 2728 Capital Boulevard, Suite 144, Raleigh, NC 27604.

Please note that Commission staff will conduct the public comment session; this is not a regular meeting of the Commission or its committees.

All web links and forms identified below are accessible at: https://ncgaming.gov/

NOTICE OF PROPOSED RULEMAKING: The North Carolina State Lottery Commission (“Commission”) is an independent, self-supporting, and revenue-raising agency of the State of North Carolina.

It has been in operation since 2006 and is governed by Chapter 18C of the North Carolina General Statutes (the “Act”).

The Commission’s primary purpose is to generate funds for educational purposes through operation of the North Carolina Education Lottery.

The Commission is also the licensing and regulatory body for authorized sports wagering and pari-mutuel wagering on horse race events.

The Commission’s wagering licensees generate tax revenues that the General Assembly statutorily allocates to support numerous programs.

The Commission is empowered to adopt any rules necessary to carry out the provisions of the Act.

With this notice of proposed rulemaking, the Commission has set a public hearing and issued a request for public comment on the adoption of certain proposed rules and amendments to be included in the North Carolina State Lottery Commission Rules Manual for Sports Wagering and Pari-Mutuel Wagering.

Proposed new rules and rule amendments noticed here include the following:

•  Rule 1A-001 Definitions [24 NCAC 06A .0101]

•Rule 1A-102 Method of Payment [24 NCAC 06A .0112]

•Rule 1B-010 Consent to Background Investigation Required; Recent Criminal History Check [24 NCAC 06A .0210]

•Rule 1B-017 Review and Issue Licenses [24 NCAC 06A .0217]

•Rule 1B-025 Denial of Renewal [24 NCAC 06A .0225]

•Rule 1B-029 License Assignment or Transfer [24 NCAC 06A .0229]

•Rule 1B-032 License Display [24 NCAC 06A .0232] NORTH CAROLINA STATE LOTTERY COMMISSION Ripley Rand Mark Michalko Chair Executive Director •

•Rule 1C-001 Grounds for Disciplinary Actions [24 NCAC 06A .0301]

•Rule 1C-021 Disqualification of Commission Member or Hearing Officer [24 NCAC 06A .0321]

•Rule 1D-013 Reserve Requirement [24 NCAC 06A .0413]

•Rule 1D-015 Taxation Requirements [24 NCAC 06A .0415]

•Rule 1D-016 Bank Secrecy Act Compliance [24 NCAC 06A .0416]

•Rule 1D-021 Disputes Pertaining to Wagering [24 NCAC 06A .0421]

•Rule 1D-024 Reporting Requirements Related to Ineligible Persons [24 NCAC 06A .0424]

•Rule 1D-028 Timely Response to Formal Letter of Inquiry [24 NCAC 06A .0428] [proposed new rule]

•Rule 1E-001 Wagering Rules [24 NCAC 06A .0501]

•Rule 1E-002 Acceptance of Wagers [24 NCAC 06A .0502]

•Rule 1F-004 Involuntary Exclusion [24 NCAC 06A .0604]

•Rule 1F-006 Operator Duties[24 NCAC 06A .0606]

•Rule 1G-001 Wagering Account Requirements [24 NCAC 06A .0701]

•Rule 1H-002 Floor Plan and Equipment List [24 NCAC 06A .0802]

•Rule 1H-003 Wagering Lounges [24 NCAC 06A .0803]

Rule 1H-004 Responsible Gaming and Problem Gambling Information [24 NCAC 06A .0804]

•Rule 1H-006 Wagering Windows [24 NCAC 06A .0806]

•Rule 1H-010 Drop and Count [24 NCAC 06A .0810]

•Rule 1H-012 Cashiers, Windows, and Cages [24 NCAC 06A .0812]

•Rule 1H-013 Surveillance System and Procedures [24 NCAC 06A .0813]

•Rule 1H-014 Wagering Facility Security Procedures [24 NCAC 06A .0814]

R•ule 1H-015 Controlled Keys [24 NCAC 06A .0815] NORTH CAROLINA STATE LOTTERY COMMISSION Ripley Rand Mark Michalko Chair Executive Director •

•Rule 1H-016 Wagering Facility Inspections [24 NCAC 06A .0816] [proposed new rule]

•Rule 2B-006 Written Designation Agreement [24 NCAC 06B .0206]

In the event the Commission ultimately adopts proposed rules, staff recommends that such amendments and new rules take effect thirty (30) days after such adoption.

ABOUT THE RULEMAKING PROCESS: The Commission adopted a rulemaking policy in September 2023, to establish a transparent, deliberative rulemaking process for implementing Articles 9 and 10 of the Act.

Taking into consideration the evolving nature of authorized gaming and wagering in North Carolina, the Rulemaking Policy and Procedure provides the Commission flexibility to act in a timely manner to serve the public interest, while including provisions that ensure the public and stakeholders have an opportunity to be heard through public comment.

The Commission’s Rulemaking Policy and Procedure can be found at this link.

This rulemaking is proceeding according to Section 9f of the Policy, “Expedited rulemaking procedure,” and is proceeding with a thirty-day comment period. If you are interested in receiving future notices of the Commission’s rulemaking process via email, please register to the Commission’s rulemaking interested persons list by completing the registration form available at this link.

PUBLIC COMMENT SESSION: Where: The Commission has directed its staff to conduct a public comment session to collect comments and feedback regarding the proposed rules on April 9, 2024. The session will begin at 9:00 a.m. at the North Carolina State Lottery Commission Headquarters, 2728 Capital Boulevard, Suite 144, Raleigh, NC 27604.

The session will adjourn no later than 12:00 p.m., though it may conclude earlier once registered parties present at Commission Headquarters have been provided their opportunity to speak.

Security: All those who wish to attend the public hearing may do so by visiting the Commission’s Headquarters at the address above.

Attendees are subject to the security protocols, which include presentation of a government issued ID.

Attendees are encouraged to arrive approximately 15-20 minutes before the public comment hearing to complete the check-in process.

Register to Speak: Individuals who wish to make an oral presentation at the public comment session must register to speak at least one business day in advance of the hearing via web portal at this link. Thus, registration must be submitted online by 9:00 a.m. ET on Monday, April 8, 2024.

Note, however, registration to make an oral presentation does not guarantee the opportunity to speak.

The Commission staff may limit the number of registrations and/or speakers due to time constraints. Oral Presentations:

All registered speakers should be present at Commission Headquarters and ready to speak by 9:00 a.m. ET on April 9, 2024. Registrants must identify themselves and any organization or entity on whose behalf they intend to speak. Oral presentations at the public hearing will be limited to three (3) minutes per speaker. Any deviation from this limit is at the discretion of Commission staff conducting the hearing.

The public hearing will be memorialized by a stenographer or by a suitable technologic solution.

NORTH CAROLINA STATE LOTTERY COMMISSION

Ripley Rand, Chair 

Mark Michalko Executive Director

The hearing will conclude after all registered speakers have had a chance to speak on the record, or at 12:00 p.m., whichever occurs earlier.

HOW TO SUBMIT COMMENTS: To submit comments, utilize the Commission public comment webform located at this link. The webform offers a place to easily comment on a specific rule or set of rules and provide any suggested changes. If you prefer to submit comments in another format, please email comments to This email address is being protected from spambots. You need JavaScript enabled to view it., along with your name and contact information, business or organization (if applicable), and the rule numbers to which your comments relate. All public comments must be submitted no later than April 19, 2024 to be considered.

The Commission and staff favor use of the webform for submission of comments. Only comments submitted in accordance with the instructions contained herein will be considered. Note that all comments are subject to the public records provisions of G.S. 132-1, et seq.

FOR FURTHER INFORMATION: Email the Commission at This email address is being protected from spambots. You need JavaScript enabled to view it. or visit https://ncgaming.gov/.

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