TLDR North Carolina’s SB 595 would require sportsbooks to report bettors with $2,000+ in annual winnings to the state Bettors cannot deduct losses from winnings under current NC state tax law A separate proposal would raise the sportsbook tax rate from 18% to 23% Some provisions were added late to the bill without full review The bill now heads to Governor Josh Stein for approval
North Carolina lawmakers have passed a tax bill that puts sports bettors under closer watch. Senate Bill 595 includes a new rule that would require sportsbooks to hand over data on bettors who win $2,000 or more in a year.
The reporting requirement would give the state Department of Revenue access to a bettor’s name, address, tax ID, wagers placed, outcomes, and total winnings. Lawmakers say the move brings the state in line with federal reporting standards.
What Bettors Are Upset About
The backlash has been quick. The main complaint is that North Carolina does not let bettors deduct their losses on state tax returns. That means a player who wins $2,000 and loses $2,000 still owes state tax on the full $2,000 in winnings.
A recent federal change made things harder too. The federal deduction for gambling losses is now capped at 90%, squeezing bettors from both sides.
Critics online have pointed out that North Carolina already shares data with the IRS. The state can already see W-2G forms and federal tax returns. The new rule would give state officials even more detail once a bettor crosses the $2,000 mark.
Insane. Last night, NC lawmakers passed a tax bill that further penalizes sports bettors who have gross winnings of $2k from any single mobile app. NC bettors are already not allowed to deduct losses at all from winnings on