NC House committee advances bill allowing gamblers to deduct losses on income taxes

A North Carolina House committee approved a bill Tuesday that would allow gamblers to deduct losses on their state income taxes, aligning state policy with federal tax law.

House Bill 14, sponsored by Rep. Keith Kidwell (R-Beaufort), passed with bipartisan support despite some opposition.

Kidwell emphasised that the bill is “about fairness to taxpayers” and not a measure aimed at promoting gambling, according to NC Newsline.

Since the legalization of online sports betting in North Carolina last March, state reports indicate more than $6 billion has been wagered. Bill sponsors argue that allowing gamblers to deduct their losses would align state tax policy with federal tax law.

Rep. Bryan Cohn (D-Granville), another sponsor, echoed this sentiment, saying that state policy should “follow federal guidance.” However, the exact amount of tax revenue the state would lose if the bill becomes law remains unclear as official calculations were not provided.

Meanwhile, in prepared remarks he was not able to deliver, Rev. Mark Creech, a lobbyist for the conservative group Return America, called the bill a “gift to the gambling industry” that would enable it to profit from “addicted individuals” rather than protect ordinary citizens.

The proposal passed the House Commerce and Economic Development Committee and now moves to the House Finance Committee for further review.