Short answer: yes. North Carolina's 2026 budget lets residents deduct documented gambling losses against gambling winnings on their state income taxes, something the state did not previously allow.
What changed in the budget (signed July 7, 2026) - State loss deduction: You can subtract documented gambling losses from state taxable income, up to your winnings. Example from local reporting: win $10,000, lose $5,000, and you pay state tax on $5,000. Reporting says the change is retroactive to January 1, 2025. - Sportsbook tax: The tax on operators' sports betting revenue rose from 18% to 23%. - Prediction markets: A new 6% tax on prediction-market trading fees tied to North Carolina activity starts January 1, 2027. It doesn't create any state license or regulation for those platforms. - Records: Gambling companies must keep detailed win/loss records, and the Department of Revenue gets expanded access to them.
Things to keep in mind - Lawmakers noted the deduction mainly helps people who keep good records and itemize. If you take the standard deduction, you may see little benefit. - Federal rules are separate (see the federal tax thread for the new 90% cap). - Download your annual win/loss statement from each app.
This isn't tax advice. Ask a tax professional about your situation.
North Carolina members: did you get hit by the old rule on your 2025 return, and are you planning to amend? Have you noticed worse odds or promos since the tax increase?
What changed in the budget (signed July 7, 2026) - State loss deduction: You can subtract documented gambling losses from state taxable income, up to your winnings. Example from local reporting: win $10,000, lose $5,000, and you pay state tax on $5,000. Reporting says the change is retroactive to January 1, 2025. - Sportsbook tax: The tax on operators' sports betting revenue rose from 18% to 23%. - Prediction markets: A new 6% tax on prediction-market trading fees tied to North Carolina activity starts January 1, 2027. It doesn't create any state license or regulation for those platforms. - Records: Gambling companies must keep detailed win/loss records, and the Department of Revenue gets expanded access to them.
Things to keep in mind - Lawmakers noted the deduction mainly helps people who keep good records and itemize. If you take the standard deduction, you may see little benefit. - Federal rules are separate (see the federal tax thread for the new 90% cap). - Download your annual win/loss statement from each app.
This isn't tax advice. Ask a tax professional about your situation.
North Carolina members: did you get hit by the old rule on your 2025 return, and are you planning to amend? Have you noticed worse odds or promos since the tax increase?