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CHARLOTTE, N.C. — One year after mobile sports betting launched in North Carolina, the industry has generated more than double the tax revenue initially projected by lawmakers.
North Carolinians have wagered over $6.1 billion since mobile betting apps officially launched on March 11, 2024, with bettors winning back approximately $5.7 billion of that amount.
“The first year of North Carolina sports betting has been wildly successful,” said Steve Bittenbender, betting analyst at BetCarolina.com.
The financial impact has significantly outpaced initial forecasts. February alone brought in over $10 million in tax proceeds, contributing to the more than $78 million in tax revenue collected since legalization.
“They were saying this was going to bring about 60, 65 million into the state,” Bittenbender explained. “You’ve already got about 117 million in tax dollars [through January] already in so you’re looking at basically double what was forecasted.”
Despite the success, some aspects of sports wagering still need refinement, particularly regarding tax policy. Currently, North Carolina doesn’t allow taxpayers to deduct gambling losses on their state tax returns.
“You don’t get to offset your wins and losses,” Mark Steber, Chief Tax Officer of Jackson Hewitt, said.
Steber highlighted the inequity in the current tax structure. “If you have losses, which many people do, it goes on another section, and only, only if you itemize. So it’s a little bit unfair to gamers who win, and it goes on the front of the tax return. And if they have losses, first, they have to itemize that group bigger than the standard deduction, and then they add it in as an other deduction.”
A bill currently in the North Carolina House aims to address this issue by allowing the deduction of losses against winnings for taxpayers who itemize.
“It’s going to allow North Carolina residents to put to get more money back, if they itemize, and that’s only going to allow them to reinvest that money in their communities, which will help the state overall,” Bittenbender said.
Sports betting operators have paid more than $128 million in taxes during the first year of operation. Eight different betting platforms are currently available to North Carolina residents.
While the economic benefits are clear, experts emphasize responsible gambling practices.
“Keep it small and keep it light-hearted as well. Don’t take it too seriously,” Bittenbender said. “That way you won’t be disappointed, and you won’t fall into some of those problem gaming behaviors that many people worry about with sports betting.”
He suggests focusing on small $5 bets, placing them strategically, and exploring different betting apps to maintain a healthy approach to sports wagering.
The timing of North Carolina’s sports betting launch coincided with March Madness last year, which helped drive initial adoption. As the state approaches another NCAA tournament, betting activity is expected to surge again, potentially setting new records for the still-growing industry.
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