Published on: June 29, 2026, 11:26h.
Updated on: June 29, 2026, 11:26h.
- Lawmakers in North Carolina are preparing to permit gamblers to deduct their losses from winnings on state tax returns for the first time, aligning with the federal deduction limit of 90%.
- This change is coupled with a proposal to increase the online sports betting tax from 18% to 23%, along with requirements for sportsbooks to report any bettor who wins $2,000 or more.
- A proposal to finance a $1.7 billion MLB stadium has been withdrawn by lawmakers.
For the first time, gamblers and sports enthusiasts in North Carolina could be allowed to offset their losses against winnings for state tax calculations.
Casino.org recently reported on potential changes by lawmakers in Raleigh aimed at reforming the online sports betting landscape in North Carolina. This includes raising the tax on gross revenue for sportsbooks and mandating that details about any bettor winning at least $2,000 be reported to the Department of Revenue.
Unlike many states with legalized gambling, North Carolina has not allowed gamblers to deduct losses from winnings on their state tax returns, a situation that may change with new budgetary proposals.
Representative Erin Paré (R-Wake) has put forth a proposal allowing itemized tax filers to deduct gambling losses from their winnings, a provision reportedly gaining substantial support.
Introduction of Gambling Deduction
It appears North Carolina lawmakers are on track to finalize this budget proposal, with a vote anticipated before the July 4 holiday.
The latest spending plan anticipates an increase in the sports betting tax on gross revenues collected from sportsbooks, raising it from 18% to 23%. Lawmakers are aiming to generate additional revenue to balance rising expenditures, including a 3% salary increase for state employees and educators along with one-time bonuses of $1,750 for those earning under $65,000, and $1,000 for those above that threshold.
To ensure that sports bettors comply with tax regulations, legislators propose that sportsbooks must report any bettor winning $2,000 or more. However, the sports betting industry has raised concerns that since losses aren’t currently deductible in North Carolina, individuals may end up paying taxes on winnings they did not actually net after losses.
Phil Berger (R-Rockingham), the influential president pro tempore, expressed to WRAL that the assembly misjudged assumptions about loss deductions tied to the $2,000 reporting requirement. Consequently, lawmakers have supported Paré’s proposal allowing gamblers to deduct up to 90% of their wagering losses, following the federal guideline in the One Big Beautiful Bill.
MLB Ballpark Proposal Abandoned
Lawmakers have decided against funding a $1.7 billion stadium targeted for Major League Baseball. Decision-makers in Raleigh acknowledged that prioritizing pay raises for state employees and teachers took precedence over potential funding for a new baseball venue, which could lure MLB expansion.
Charlotte remains a front-runner for MLB expansion, although Las Vegas was once considered a strong candidate until the Oakland Athletics confirmed their move to the gaming capital starting in the 2028 MLB season.