The NBA is moving next year's All-Star game from North Carolina in protest at an anti-LGBT law, meaning the loss of around $100m for the state.
The law, known as HB2, was enacted in March and limits anti-discrimination protections for lesbian, gay and transgender people.
The league was due to play in Charlotte in February but will announce a different venue shortly.
In a statement, they said: "While we recognise that the NBA cannot choose the law in every city, state and country in which we do business, we do not believe we can successfully host our All-Star festivities in Charlotte in the climate created by HB2."
There are hopes that the 2019 game can be rescheduled for Charlotte if the issue is resolved, they added.
Officials in Charlotte had expected the economic impact of the event to top $100m.
Charlotte Hornets chairman and former basketball star Michael Jordan, said: "We understand the NBA's decision and the challenges around holding the NBA All-Star game in Charlotte this season.
"There was an exhaustive effort from all parties to keep the event in Charlotte and we are disappointed we were unable to do so.
"With that, we're pleased that the NBA opened the door for Charlotte to host All-Star weekend again as soon as an opportunity was available for 2019."
The General Assembly has restored the ability of workers to sue under state law for employment discrimination on the basis of race, religion and some other factors but sexual orientation and gender identity were left out.
Republican lawmakers also refused to change laws forcing transgender people to use toilets intended for the sex on their birth certificates.
This law passed in March and related to workplaces, restaurants and hotels.
It over-rides an earlier Charlotte law that allowed transgender people to use toilets based on their own gender identity.
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