North Carolina Handle Soars to Over $646 Million in January

North Carolina sportsbooks generated nearly $647 million in accepted wagers, a strong rebound after a middling December, translating into millions in revenue and tax dollars.

New Year Betting Bonanza

North Carolina launched mobile sports betting in March 2024, which still holds the record for the highest handle, but a busy November came within $2 million of breaking the state’s monthly record of $659.3 million.

Yet, December’s numbers were fairly disappointing considering the NFL and college football were still in full swing, and so too were the NBA and NHL schedules. Nevertheless, North Carolina sportsbooks posted a combined $624.6 million handle, nearly $25 million less than the previous month.

However, January’s numbers were encouraging with $646.9 million wagered, generating revenues of $74.5 million on an impressive 11.52% hold or win rate. This proved to be a lucrative month for the state as well, collecting 18% off gross gaming revenue, which equaled $13.4 million in taxes.

Since launching sports betting on March 11, 2024, North Carolinians have wagered more than $6 billion, which has generated revenues of over $658 million for the sportsbooks, of which $117.5 million has been collected in taxes.

The money collected from the state’s sports betting operators is earmarked for the following:

• The Department of Health and Human Services (gambling addiction resources)
• North Carolina Amateur Sports
• 13 state universities
• North Carolina Youth Outdoor Engagement Commission
• MEGA Fund (a fund designed to attract major sporting events and attractions)
• General Fund

Money is also appropriated to what the Lottery Commission calls “certain reimbursements to the NC State Lottery Commission and the NC Department of Revenue for expenses incurred to implement and administer the new law.”

Tax Loss Law

Unlike the federal government and virtually every other jurisdiction, North Carolina does not allow sports bettors to write off their losses. This is problematic because sports bettors in the Tar Heel State are expected to pay 4.5% of what they won to the state’s tax coffers.

“The biggest misconception I would surmise for taxpayers is the netting of the two—can I deduct my losses from my gambling winnings?—and the answer in North Carolina is no,” said Alan Woodard with the NC Department of Revenue.

And even those who don’t receive a W2-G form are still liable to self-report their winnings. “If the income is below $600, then the taxpayer may not receive any tax documents, but then it’s up to the taxpayers to keep accounting for all the winnings and earnings and all the losses,” said Aradhana Aggarwal, a local certified public accountant.

But losses need not be accounted for as they are currently not allowed as a deduction. If this seems unfair, it is an opinion shared by State Representative Erin Paré, who has recently filed a bill allowing losses to be deducted from North Carolinian’s winnings. “So, let’s say you placed a bet, several bets maybe, and then you came out of the day just even. You won some, you lost some, but you just were back to where you began. North Carolina, right now, would take the winnings and require you to pay income tax on those winnings without taking into account your losses,” said Paré.

“So, you’re basically in an environment where someone who participated in gambling may not be in the position to pay taxes since they never really received their winnings as income, but North Carolina law is requiring them to pay taxes on it,” she added. “This bill conforms North Carolina law into federal law when it comes to sports betting and gambling, being able to deduct your losses against your winnings,” Paré noted.