North Carolina lawmakers introduced House Bill 14 in early 2025, proposing that residents be allowed to deduct gambling losses from their state income taxes. This aligns with federal tax law, which currently permits such deductions.
Currently, North Carolina taxes gambling winnings without allowing deductions for losses, potentially resulting in tax liabilities even when individuals experience net losses. The bill has gained bipartisan support in the House Commerce and Economic Development Committee.
As of July 3, 2025, the bill has passed the committee stage and awaits further legislative action. The outcome could significantly impact North Carolina's gambling industry, which has grown since the legalization of online sports betting in March 2024.