Gamblers in North Carolina May Finally Catch a Tax Break on Their Losses

Posted on: June 29, 2026, 11:26h. 

Last updated on: June 29, 2026, 11:26h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • North Carolina lawmakers are poised to allow gamblers to deduct losses from winnings on state tax returns for the first time, aligning the deduction with the federal 90% limit
  • The proposed change comes alongside a plan to raise the online sports betting tax from 18% to 23% and require sportsbooks to report bettors who win at least $2,000
  • Lawmakers dropped a proposal to help fund a $1.7 billion MLB stadium

Gamblers and sports bettors in North Carolina, for the first time, might finally be allowed to deduct their losses against their winnings for state tax purposes.

North Carolina sports betting tax
An aerial view of Bank of America Stadium, home of the NFL Carolina Panthers. Sports betting revenue collected by licensed online sportsbook operators in North Carolina could see a tax hike. (Image: Shutterstock)

Casino.org reported last week that lawmakers in Raleigh are expected to overhaul the North Carolina online sports betting climate by increasing the state’s tax on gross sportsbook revenue and requiring operators to inform the Department of Revenue of all bettors who win at least $2,000 in a given year gambling on sports.

Unlike most states where commercial gambling is allowed, North Carolina has never permitted gamblers filing an itemized tax return to deduct losses from their winnings. That could soon change through an amendment tacked on to the most recent version of the long-awaited state budget.

Rep. Erin Paré (R-Wake) proposed allowing itemized filers to deduct their gambling losses against their taxable winnings, and the provision is said to be widely supported.

Gambling Deduction

North Carolina lawmakers have reportedly agreed to the latest version of the budget proposal, and a vote is likely before the July 4 holiday.

In the spending plan, the state is expected to raise the sports betting tax on gross revenue generated by the sportsbooks from 18% to 23%. Lawmakers are in need of additional revenue to offset increased spending, which includes a 3% pay hike for state employees and teachers and one-time bonuses of $1,750 for state employees and teachers making under $65,000 ($1,000 for those making more than $65,000).

Legislators are looking to ensure that sports bettors pay their appropriate taxes by forcing sportsbooks to report bettors who win upwards of $2,000. The sports betting industry fired back on the proposal, citing the fact that North Carolina doesn’t allow filers to deduct losses, meaning they could be on the hook to pay state taxes on $2,000 despite not actually netting $2,000 from their wagering activity.

Phil Berger (R-Rockingham), the powerful president pro tempore, who tried to usher in commercial casinos in rural counties in recent legislative sessions, told WRAL that the General Assembly was mistaken in thinking that gambling losses would become deductible in the $2,000 reporting amendment. The legislators subsequently backed Paré’s budget provision to allow gamblers to deduct up to 90% of their wagering losses against their winnings, mimicking the federal law in the One Big Beautiful Bill.

No MLB Ballpark

Lawmakers scrapped a budget proposal to fund a $1.7 billion Major League Baseball stadium. Raleigh’s elected officials determined that funding state employee and teacher pay increases was more critical than funding a baseball venue that might attract an MLB expansion team.

Charlotte has been on the MLB’s shortlist of possible expansion cities. Las Vegas had also been considered a front-runner until the Oakland Athletics announced their plans to move to the casino capital with the start of the 2028 MLB season.