Please note, the following information is meant to be used for informational purposes only and is not meant to provide legal or tax advice.
North Carolina legalized online sports betting in June 2023. In March 2024, eight online sportsbooks launched operations within the state. The North Carolina State Lottery Commission reported that wagers exceeded $659 million in the first month alone, signaling the significant public interest in sports betting.
Gambling comes with risks, including potential tax liabilities. It is important to stay informed about your obligations as a taxpayer if you choose to participate in online sports betting.
The North Carolina Low-Income Taxpayer Clinic at Charlotte Center for Legal Advocacy provides information on the tax implications of online sports betting for North Carolinians in the video below. This video offers an overview of the responsibilities of taxpayers who participate in online sports betting or other gambling activities. It also covers other important considerations, such as the requirement to keep accurate records of gambling activities and how gambling income may affect your eligibility for public benefits.
Helpful resources:
IRS Interactive Tax Assistant – How do I claim my gambling winnings and/or losses? This online interactive questionnaire will help you determine how to claim your wins and losses.
IRS Interactive Tax Assistant – As a nonresident alien, are my gambling winnings exempt from federal income tax? This online interactive questionnaire will help you determine if your winnings are tax exempt and if you’re eligible to claim of refund of withholdings.
IRS Publication 519, U.S. Tax Guide for Aliens
Taxpayer Advocate Service website
To contact the North Carolina Low Income Taxpayer Clinic at Charlotte Center for Legal Advocacy, call 980-353-3530.