North Carolina Sports Betting Tax Revenue Hits $12.6 Million in September

North Carolina pulled in $12.6 million from sports betting taxes this September, their second-highest month since launching in March. With an 18% cut in betting activity, the state now ranks 11th among 27 states where sports betting is legal. For 2024-2025, officials expect $188 million in tax revenue, with $90 million going to the General Fund. Since July 2024, betting has brought in $308 million in total revenue.

"The state's done real well and we're happy with the progress we're seeing," said Johnny Avello, sports director with DraftKings, to ABC11.

Bettors who win must pay 4.5% to the state. Unlike federal rules, NC doesn't allow gamblers to deduct their losses. State Rep. Erin Pare hopes to change this with new legislation. "I do see it as a fairness thing, and I also see it as a clarity issue," said Rep. Erin Pare, R-Wake, one of the bill's primary sponsors said to WRAL.

Winners need to report all gambling income to the state, even amounts under $600 that don't get W-2G forms. Careful bettors keep records of their wins and losses. While NC's constitution limits income tax to 7%, the 18% betting tax bypasses this cap by being classified differently. This high rate hasn't stopped eager bettors.

"The biggest misconception I would surmise for taxpayers is the netting of the two — can I deduct my losses from my gambling winnings and the answer in North Carolina is no," said Alan Woodard with the NC Department of Revenue to ABC11.

Local bettor Cameron Roth is pleased: "I've done some DraftKings, some Prize Picks, and I think it's been a lucrative avenue for us in North Carolina."

Sue Mooney explained how winners use their money: "They pay for a trip, they do something fun with it," describing her husband's and friends' approach to betting wins.

The Department of Revenue requires bettors to keep detailed records throughout the year, with tax returns due April 15, 2025.