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Online casino legalization is emerging as a key issue in North Carolina’s ongoing gambling debate. While the state has recently launched mobile sports betting and allows limited casino gaming through tribal operations, online casinos remain illegal. The growing popularity of digital gambling nationwide has prompted lawmakers and stakeholders to explore whether North Carolina should follow suit and enter the expanding online casino market.

Pennsylvania offers one of the most instructive examples. Since launching its legal online casino market on July 19, the state has demonstrated how a well-regulated system can generate substantial revenue while upholding consumer protections. For North Carolina, Pennsylvania’s experience provides a valuable framework for balancing economic opportunity with public responsibility.

1. Economic Benefits and Revenue Generation

Pennsylvania’s decision to legalize online casinos in 2017 and launch the market in 2019 has paid significant economic dividends. The state now generates more than $1 billion in annual revenue from online gambling alone. These funds have supported education, transport, and community development—showing how online gaming can help meet budget needs without raising taxes.

The consistent revenue stream has also provided a level of fiscal stability, especially during times of economic uncertainty. Unlike one-time funding sources, online casino earnings offer ongoing, scalable income tied to consumer engagement. This has allowed Pennsylvania to invest in long-term projects and improve services across the board.

Following a similar path for North Carolina could mean unlocking a new and sustainable revenue source that benefits all residents.

2. Robust Regulatory Oversight

The Pennsylvania Gaming Control Board (PGCB) is the primary regulatory body for the state’s online gambling operations. It oversees licensing, compliance, and game integrity to ensure a secure and fair market. The PGCB’s detailed guidelines cover everything from data security to financial transparency. This level of oversight has built trust among players and operators alike, creating a solid foundation for any legal PA casino operating within the state’s framework.

A major focus of Pennsylvania’s oversight is responsible gambling. Every legal PA casino site must provide tools such as self-exclusion programs, deposit limits, time management features, and access to addiction resources. This approach not only protects players but also enhances the industry’s credibility, setting a high standard for states like North Carolina to follow.

3. Strategic Taxation Policies

Pennsylvania’s taxation policy for online casinos is among the most aggressive in the nation, yet it has not hindered market growth. The state taxes online slot machine revenue at 54% and table games like poker at 16%, channeling substantial income back into public services. Despite the high rates, top operators have eagerly entered the market, proving that companies participating in the regulatory and consumer environments are stable and profitable.

This strategy offers a clear lesson for North Carolina: higher tax rates, when implemented wisely, need not scare away reputable operators. A carefully structured tax system can strike a balance between maximizing state revenue and maintaining a competitive business environment. As Pennsylvania has done, tailoring rates to different game types provides flexibility while ensuring consistent financial returns.

What’s Next for North Carolina?

North Carolina currently permits limited casino gaming through tribal operations and has only recently launched mobile sports betting. While lawmakers have shown interest in broader gambling legislation, online casinos remain off the table for now. Experts say the state should first create a regulator like Pennsylvania’s Gaming Board to oversee licensing, compliance, and integrity in iGaming.

A successful online casino framework will also require strong consumer protections. The proposed legislation should include mandatory responsible gambling tools such as deposit limits, self-exclusion programs, cooling-off periods, and access to addiction support. Involving tribal leaders, operators, and health advocates early can help create a more effective, inclusive system.

Public education will also play a role in the rollout of any future iGaming platform. Promoting safe gambling and support resources can reduce harm and build public trust. Transparent communication and ongoing community engagement will be key to long-term success.

A Cautious Path Forward

North Carolina stands at a crossroads. With growing public and legislative interest in expanded gambling, the state can learn from the successes and setbacks of early adopters like Pennsylvania. A thoughtful approach that emphasizes consumer protection, regulatory oversight, and smart taxation could lay the groundwork for a safe and profitable online casino market. The question now is whether state lawmakers are ready to take the next step.

Gamble Responsibly. You must be 21 years old or older to gamble. If you or someone you know has a problem with gambling help is available at 1-800-GAMBLER.