Sports Betting Tax Hike Proposal in Ohio
Ohio Governor Advocates for Increase in Sports Betting Tax Rate by 100%
By Mike Dash - February 4, 2025
Picture by Erik Drost, CC BY 2.0
Quick Facts
- Ohio Governor Mike DeWine pitches a new tax rate of 40% on sports betting
- The governor blames aggressive sportsbook strategies for the growth of the tax hike
- Ohio lawmakers are also discussing a bill to lower the rate to 10%
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Ohio is wrestling with two proposed sports betting tax hikes:
- Governor DeWine's plan aims to boost the current 20% rate to 40%, putting Ohio second-highest in the nation, behind New York's (51%) [1][3][5].
- State Rep. Blessing's bill suggests a smaller increase to 36%, prioritizing collaborative approaches with operators and teams [1].
These hikes stem from a 2023 increase from 10% to 20% by DeWine, targeting $160M–$180M annually for infrastructure, sports academies, and stadium maintenance funds. Operators are asked to contribute their own capital, avoiding residents' tax increases through public-private partnerships [1][5]. Yet, opponents highlight the risk of driving operators offshore or towards illicit markets [5], as seen in North Carolina, with a similar proposal of 18% to 36% [2]. DeWine's plan faces resistance, with an initial attempt to include the tax hike in budget legislation being scrapped [4].
- Mike Dash, a renowned expert in US online gambling, has discussed the recent sports betting tax hike proposal in Ohio, set to increase the current 20% rate to 40% by Governor Mike DeWine.
- The proposed tax hike is a response to aggressive sportsbook strategies, as stated by Governor DeWine, and would make Ohio the second-highest taxed state for sports betting, just behind New York's 51%.
- Concurrently, Ohio lawmakers are also considering a bill that would lower the tax rate to 10%, aiming for a more collaborative approach with operators and sports teams.
- This proposal, if implemented, would generate an estimated $160M–$180M annually for infrastructure, sports academies, and stadium maintenance funds.
- Critics argue that the tax hike could drive operators offshore or towards illicit markets, as seen in North Carolina with a similar proposal.
- Despite the proposal, an initial attempt to include the tax hike in budget legislation was scrapped due to resistance, indicating potential policy shifts in the coming months within the sphere of politics and policy-and-legislation related to sports betting, casino, and general-news, including articles on online casino and sports betting.
