Ohio Governor Mike DeWine has unveiled a bold proposal to double the state’s sports betting tax rate from 20% to 40%, a move that could reshape the landscape of legal sports wagering in the Buckeye State. This latest initiative, part of DeWine’s final budget proposal, comes just two years after the tax rate was initially raised from 10% to 20% in July 2023.
Potential Impact on Ohio’s Sports Betting Market 4z314x
If approved by lawmakers, the tax hike would catapult Ohio into the ranks of the highest-taxed U.S. jurisdictions for sports betting, second only to New York’s 51% rate. The proposed increase is projected to generate between $130 million and $180 million in additional annual tax revenue, earmarked for a new “Sports Construction & Education Fund” and youth sports initiatives.
DeWine justified the proposal, stating, “These sports gaming [groups] are extremely aggressive… They’re getting Ohioans to lose massive amounts of money every year and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.”
The proposal comes at a time when Ohio’s sports betting market is showing signs of growth. In 2024, Ohioans wagered $8.9 billion on sports, up from $7.6 billion in 2023. However, tax revenue slightly decreased from $934 million to $904 million year-over-year.
However, the industry has voiced strong concerns.
Scott Ward, vice president of the Sports Betting Alliance, warned that the tax hike could lead to “worse products for customers, de-incentivize investment through sportsbooks’ community partners, and leave far less funding for future responsible gaming initiatives.” He also cautioned that it might inadvertently boost unregulated and offshore betting apps.
As Ohio considers this significant tax increase, the sports betting industry and bettors alike are closely watching the developments. The potential impact on odds, promotions, and the overall betting experience in Ohio remains to be seen.
