Governor calls for fixing gambling taxes after Ledger article
Cooper says it's "not fair" to pay taxes on winnings without the ability to deduct losses
The following article appeared in the May 1, 2024, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.
Even if bettors lose overall on sports wagers, they could owe North Carolina taxes
N.C. Gov. Roy Cooper is calling on the General Assembly to change the way it taxes gambling, saying it is unfair to tax residents even if they lose money overall on their bets.
“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 wrote on X (Twitter) on Monday. “Legislators should fix this.”
The call to change the law comes less than a week after a Ledger article pointed out that bettors who lose money on newly legalized sports gambling over the course of a year still will likely owe income taxes because the bets they win are subject to tax while the bets they lose typically can’t be deducted on federal taxes and cannot be deducted on North Carolina taxes.
The Ledger first heard about the quirk in N.C. law from a reader in late March. Following the publication of our article on April 24, the issue was highlighted in a blog post by an N.C. State accounting professor and by Raleigh TV station WRAL.
Even if N.C. legislators change the law to allow deductions for gambling losses on state taxes, that would not address the issue on federal taxes, on which taxpayers can deduct losses only if they itemize.
The state legislature reconvened in Raleigh last week. It is expected to take up budget issues. —Tony Mecia
Related Ledger articles:
“Tax surprise awaits sports bettors” (🔒, April 24)
“Update: State revenue department anticipates smooth sailing on treatment of gambling wins and losses” (April 26)
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Executive editor: Tony Mecia; Managing editor: Cristina Bolling; Staff writer: Lindsey Banks; Business manager: Brie Chrisman