Ohio Senator Proposes Imposing Fee on Sports Betting Operators for Handling Bets
The Lowdown on Ohio's Sports Betting Handle Tax Proposal
Here's some fresh tea on the latest legislative move in Ohio: Senator Louis W. Blessing III has proposed SB 199, a bill that, if passed, would institute a 2% tax on the sports betting handle. This tax would be levied on top of Ohio's existing 20% tax on total sports betting revenues.
Currently, Tennessee is the sole state sporting a privilege fee on sports betting handle, making Ohio's proposal a bit of a game-changer. If enacted, this tax would hit both online and brick-and-mortar sports betting operations in the Buckeye State.
The proposed revenue generated by this new tax would be funneled towards supporting interscholastic athletics and extracurricular activities for primary and secondary school students, and the renovation or new construction of publicly owned professional sports facilities in Ohio.
Revenue Breakdown
Let's break it down: The sports betting handle tax would bring in millions more to Ohio's coffers, but it'd cost operators millions more in fees each month. For instance, in 2025, Ohio sports betting customers wagered $2,763,994,272 through March. A 2% sports betting handle privilege fee would have added an extra $55,279,885 to Ohio's revenues.
However, it's worth mentioning that this additional revenue would sit alongside the $44,593,443 in sports betting tax revenue Ohio has pocketed through March, as stated in its current tax structure.
Double Down on DeWine's Plan?
A little birdie (i.e., Governor Mike DeWine) previously proposed an increase to Ohio's sports betting tax rate from 20% to 40%. Although DeWine's proposal was shot down by Ohio lawmakers earlier this year, the latest bid for a sports betting handle tax could be the state's new fishing hook.
Key Differences: Ohio vs. Tennessee
Ohio and Tennessee are having a bit of a showdown in the world of sports betting taxation. While Ohio's proposed tax would be a direct 25% tax on gross sports gaming wagers, Tennessee imposes a privilege fee based on the handle (the total amount wagered) for sports betting operators. In practical terms, Tennessee's privilege fee operates as a tax on the gross handle rather than a percentage tax on wagers or revenue.
Trivia Time: If you're interested in nuts and bolts, here's something to geek out on: Under Tennessee's model, the state collects a flat fee per wager as a privilege fee, which is effectively a tax on the gross handle. Ohio's proposed tax, on the other hand, is a direct 25% tax on the total amount wagered in sports betting.
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[1] Enriched Insights: Ohio's proposed tax would be a 25% tax directly on the gross wagers, while Tennessee imposes a privilege fee based on the handle (total bets). The main distinction comes from the way revenue is taxed and the impact on operators and bettors, with Tennessee's approach creating a unique tax structure that's more akin to a cost per bet rather than a straightforward percentage fee.
The proposed sports betting handle tax in Ohio, as outlined in SB 199, would be a significant shift for operators, as it would amount to a 25% tax on the gross wagers. On the other hand, Tennessee currently imposes a privilege fee on sports betting handle, creating a tax structure that's more akin to a cost per bet. This distinction in taxation methods could have a noticeable impact on both operators and bettors in these states.
