Gambling Loss Tax Deduction Bill Advances in North Carolina

A bill, proposing a gambling loss income tax deduction, is making its way in North Carolina. The proposal, which was introduced near the end of January this year, recently received bipartisan support by a House committee.

House Bill 14 Receives Bipartisan Support

The bill, titled “Gambling Losses Tax Deduction” seeks to enable North Carolina residents to deduct gambling losses from their taxable income. Under the proposal, House Bill 14 (HB 14), the state seeks to align its regulations to federal laws. “The amount allowed as a deduction for wagering losses under section 165(d) of the Code, to the extent the losses are not deducted in arriving at adjusted gross income,” reads the proposal.

On Tuesday this week, HB 14 successfully made it through the House Commerce and Economic Development Committee. While some of the Committee members voted against the bill, it ultimately received bipartisan support and picked up speed. The next stop for HB 14 is now the House Finance Committee, where it will seek further support.

Rep. Keith Kidwell, one of the bill’s sponsors and an opponent of gambling, who was recently quoted by NC Newsline, explained that the proposal is not about gambling but rather about “fairness to taxpayers.” As noted, if the bill is approved, it would align North Carolina’s regulatory framework to the one available on a federal level. Speaking in support of HB 14, Rep. Bryan Cohn, explained that state policies “should follow federal guidance.”

Further details regarding the proposal, including how the gambling loss income tax deduction would be calculated, are yet to be released publicly. Similar to other proposals, lawmakers may consider implementing changes to the text of HB 14 prior to its approval.

Legal Online Betting Closing in on First Anniversary

It was last year in March when North Carolina launched its online sports betting market. Closing in on its first-year anniversary, set to take place on March 11, 2024, the betting market in the state continues to grow.

Data from the gambling regulator, the North Carolina State Lottery Commission, reveals that in January alone, nearly $647 million was wagered across the state. During the same month, bettors collected $568.5 million in winnings, while the operators’ gross wagering revenue hit $74.5 million, resulting in $13.4 million in tax proceeds.

The aforementioned figures reaffirm the popularity of betting. In that line of thought, HB 14 is expected to bring positive change, especially for North Carolina residents who are gambling. Still, the proposal is yet to gain further traction in the state’s legislature.