North Carolina’s HB 14 Pushes for Tax Breaks on Gambling Losses
North Carolina’s House Bill 14 is gaining traction. The bill cleared the House Commerce Committee and now, it’s with the Finance Committee. The bill lets residents deduct gambling losses from taxable income.
A Fairer Tax Code?
HB 14 aims to match federal tax rules. It allows deductions up to losses permitted under IRS Section 165(d). Rep. Keith Kidwell, a bill sponsor, backs it despite opposing gambling. “This is about fairness for taxpayers,” he said. Rep. Bryan Cohn agrees. “State policy should align with federal guidelines,” he noted. Plus, Rep. Erin Paré sees a perk. “It simplifies tax filing for residents,” she added.
The push comes after online sports betting launched in March 2024. Bettors wagered over $6 billion since then. For instance, taxing wins without loss offsets feels off to backers. They argue it’s income players don’t keep.
What’s at Stake
Supporters highlight benefits. First, it evens the tax playing field. Next, it syncs with federal law. Also, it eases tax prep. However, critics see risks. For one, state tax revenue could drop. Exact losses aren’t yet clear.
Meanwhile, Rev. Mark Creech of Return America slams it. “This is a gift to the gambling industry,” he said. He fears it’ll boost betting, especially among problem gamblers.
The bill’s fate hinges on fairness versus finance. Kidwell insists it’s not pro-gambling. “We’re fixing an inequity,” he said. Yet, Creech warns of harm. “It benefits operators over the public,” he countered. As HB 14 moves forward, North Carolina weighs tax relief against budget impacts. The debate’s heating up fast.
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