North Carolina’s online sports betting market recorded $5,417,556,359 in wagers from March to December 2024, according to the report. House Bill 14 was introduced to let taxpayers deduct gambling losses, while lawmakers weigh the effect on state tax revenue against the fairness of the current rules.
The proposed deduction could change how bettors’ losses affect their tax liabilities and the state’s revenue.
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North Carolina lawmakers are considering raising the tax on sports betting revenue during state budget negotiations, according to reports. The current rate is 18%, and the increase could be as much as 12 percentage points. The General Assembly aims to finalise its budget next month, with the legislative session running through August.
Lawmakers in New York and North Carolina proposed changes to sports betting rules, according to reports. New York Assemblyman Robert Carroll introduced a bill for a $5,000 daily wagering cap, while North Carolina legislation would raise the tax rate from 18% to 36%. The New York proposal also includes deposit limits and advertising restrictions.
North Carolina Senate Republicans proposed raising the sports betting tax from 18% to 36% in their two-year budget, with the change due to take effect on 1 October if Senate Bill 257 is approved. The state collected about $128 million in tax revenue during its first year of sports betting, according to the report. The proposal would also change how some proceeds are distributed to universities.
North Carolina's $34bn budget, signed by Governor Josh Stein in July, includes a 6% tax on prediction market operators' net trading fee revenue, citing WFAE. The tax takes effect in January and is expected to raise about $1m in the 2026-27 fiscal year. The measure adds to debate over election-related contracts on platforms such as Kalshi and Polymarket.
According to, citing WFAE, North Carolina's new spending plan imposes a 6% levy on the net trading fee revenue of prediction market operators. The measure takes effect in January.
Nevada authorities argued in a court filing that Kalshi’s acceptance of a North Carolina revenue tax acknowledges states’ authority over prediction markets. The filing forms part of Nevada’s legal dispute with Kalshi.