CHARLOTTE, N.C. (WBTV) – If you are one of the many North Carolinians who jumped on the newly legalized sports betting in 2024, you now have to pay taxes on it.

Any proceeds from rolling the dice with sports gambling count as taxable income, just like the paycheck you get at work.

At the federal level, you can take itemized deductions for losses, but in North Carolina, that does not exist. This means that if you bet on sports you will face a 4.25% tax on your winnings, even if you break even.

[Report: North Carolinians wagered over $655M within first 3 weeks of legal sports gambling]

Alan Woodard, the Assistant Secretary of Tax Enforcement and Compliance with the North Carolina Department of Revenue, says some people will get what’s called a W-2 G form.

“The W-2G is a myriad of reporting mechanisms whether you play keno or slot machines or bingo or online sports gambling, and there’s different criteria for each,” he said. “But whether you receive the W-2G or not, you are required to report all the gambling winnings on your tax return.”

There is clear documentation of your activities on apps like DraftKings and FanDuel.

Woodard also recommends keeping a log of your wagers to ensure the information is accurate.

There have been efforts to change the tax law in North Carolina to allow losses to be deducted, but that has not happened as of now.

The deadline to file is April 15th.

For more information on this from the North Carolina Department of Revenue, click here.

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