I live in Tn. but have gambling winnings and losses in N.C. ..Do I have to pay state taxes

[MichaelMc]

You will not have a filing requirement in Tennessee, as Tennessee's Hall Income Tax only taxes interest and dividend income. You may have a North Carolina filing requirement if your North Carolina sourced income exceeds the state's filing threshold. Please see http://www.dornc.com/taxes/individual/resident.html for more information.

All gambling winnings, including lottery tickets, must be reported as ordinary income. Gambling losses, including losing lottery tickets, are deductible but (1) only up to the amount of your winnings and (2) only if you itemize deductions.

If you claim the standard deduction, you are still obligated to report and pay tax on all winnings  during the year. However, you will not be able to deduct any of your losses.

For more information, please see this TurboTax Guide Gambling winnings and losses.