A North Carolina state lawmaker is hoping her colleagues will take up a bill she intends to file when the 2025 General Assembly session starts that could benefit many bettors who use the Tar Heel Stateās licensed sports betting apps.
State Rep. Erin Pare, R-Holly Springs, told BetCarolina.com that she will sponsor legislation that would let North Carolina sports betting customers deduct gambling losses to offset any winnings they report from the eight online operators licensed by the state.
The idea for the bill came up this year. Pare said several sports bettors who live in her suburban Raleigh district approached her after they realized the North Carolina sports betting law the legislature passed in June 2023 didnāt contain the ability to deduct gambling losses from gambling winnings as the federal government allows.
āThey explained it to me, and I thought it was pretty reasonable for North Carolina to conform to federal and add that itemized deduction,ā Pare said. āFrankly, thatās consistent with the spirit of the North Carolina State Constitution that lays out when weāre talking about income tax, it should be net income is taxed. So, I thought it was a reasonable, common-sense thing to do.ā
Lawmakers will return to Raleigh on Jan. 8 to begin the 2025 session, which is expected to run through July 31.
How The Deduction Would Work
The gist of the bill is as follows: If a bettor wins $2,000 from a North Carolina sportsbook app, such as BetMGM or FanDuel, and they itemize their deductions when they file taxes, they would be able to include up to $2,000 in gambling losses to offset the state income tax liability on their winnings. Anyone using the standard deduction would not be able to apply those losses.
As it stands now, Pare wants to make the deduction retroactive to when March, but it would be up to the legislature. There is no fiscal note to analyze the billās impact. Pare said the estimated impact would be between $20 million and $25 million, with that money going back to taxpayers.
Itās important to note that the bill would not affect the amount of money the state receives from the sports betting tax, which is derived from the gross revenues operators report on a monthly basis. Data from the North Carolina State Lottery Commission shows that the 18% tax on operator revenues has generated nearly $84.6 million through October. That eight-month tally has already exceeded the state forecast of approximately $60 million for the first fiscal year.
Bipartisan Support For NC Sports Betting Bill
Pare noted that the idea of deducting losses has bipartisan support. Earlier this year, Gov. Roy Cooper, a Democrat, came out in favor of it in May, less than two months after North Carolina sports betting launched statewide on March 11.
Cooperās term, however, ends on Jan. 1. He will be replaced by another Democrat, current Attorney General Josh Stein. A message to the Stein transition team seeking comment was not immediately returned.
BetCarolina.com will have more coverage on this story plus real money NC sports betting promos for signing up with an operator.
USA Today photo by James Guillory
