North Carolina Bill Allows Gamblers to Deduct Losses from State Taxes
A bill that would allow gamblers in North Carolina to deduct their losses on state income taxes advanced through a House committee on Tuesday. The proposal, known as House Bill 14, received a divided but bipartisan vote in the House Commerce and Economic Development Committee, pushing it forward for further consideration.
LISTEN TO THIS ARTICLE:Rep. Keith Kidwell, a sponsor of the bill, emphasized that the measure is intended to ensure fairness for taxpayers rather than promote gambling. He explained that allowing gamblers to deduct their losses, up to the amount of their winnings, would bring state tax policy in line with federal regulations. Under federal tax law, individuals who report gambling winnings are allowed to offset those earnings with documented losses, but North Carolina does not currently extend the same provision at the state level.
Related: Public Support for Casinos in North Carolina on the RiseSince online sports betting became legal in North Carolina in March 2024, more than $6 billion has been wagered in the state, according to official reports released prior to the Super Bowl. Proponents of the bill argue that with such a significant amount of gambling activity taking place, tax policy should be structured in a way that aligns with existing federal guidelines.
Rep. Bryan Cohn voiced support for the proposal, stating that North Carolina should follow federal tax policy regarding gambling losses. He expressed that aligning state law with federal regulations would create consistency for taxpayers who participate in legal gambling activities.
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Measure Still Faces Challenges
Despite support from some lawmakers, concerns were raised about the potential impact of the bill. An official estimate of how much revenue the state could lose if the measure becomes law was not readily available online. The absence of a precise financial impact assessment has led to debate over whether the bill could negatively affect state revenues.
Opponents of the proposal have also expressed concern over its broader implications. Rev. Mark Creech, a lobbyist for the conservative organization Return America, has argued that allowing gambling loss deductions would encourage gambling rather than protect citizens.
In prepared remarks that he was not permitted to deliver during Tuesday's hearing, he wrote that the bill would benefit the gambling industry by enabling it to retain individuals who struggle with addiction, rather than safeguarding the general public.
During the committee hearing, some members voted against advancing the bill, but their opposition was not enough to halt its progress. House Bill 14 will now move to the House Finance Committee for further consideration. If it advances through the legislative process and is ultimately signed into law, the measure could have significant implications for how gambling income is taxed in North Carolina.
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