Sports bettors in North Carolina must pay state income taxes on their winnings, but cannot deduct their losses to lessen the tax bill under current law.
Gov. Roy Cooper called for state lawmakers to remedy that situation, which could become an issue with the legalization of mobile sports betting across the state in March.
“When it comes to sports wagering, it’s not fair to have to pay taxes on your winnings without being able to deduct your losses,” Cooper said on social media. Cooper was a supporter of legalization. “Legislators should fix this.”
Under current law, if bettor won $1,000 gambling but lost $5,000, the bettor would be responsible for taxes on the $1,000 in winning. Any change is not likely to let you deduct losses from your other income, but simply use losses to negate tax payments on winnings.
