Ohio Gov Signs Legal Sports Betting Tax Rate Increase to 20%

• A newly approved Ohio state budget includes a sports betting tax rate increase to 20%.
• Ohio Governor Mike DeWine signed the approved budget on July 3.
• The tax rate increase went into effect on July 1, 2023.

COLUMBUS, Ohio – A sports betting tax rate increase included in the Ohio budget for fiscal year 2024-2025 was approved and signed into law by Governor Mike DeWine on Monday. Ohio Governor Mike DeWine wished to increase Ohio’s sports betting tax rate shortly after sports betting went live in the Buckeye State.

The Ohio House of Representatives made the state budget back in April without any mention of a legal sports betting tax rate increase. The Ohio Senate then amended the House budget and added the 20% sports betting tax rate increase.

Initially, the House voted down the Senate changes to the budget. However, after discussion in conference committees, the Ohio House of Representatives voted to approve the budget without discussing the sports betting tax rate increase. As of July 1, legal Ohio sports betting will be taxed at a 20% rate.

Despite the month of May having the lowest handle since legal Ohio sports betting launched in January, the state still reeled in over $57 million in taxable revenue. According to the Ohio Casino Control Commission’s gaming revenue report, sports betting generated over $500 million dollars in taxable revenue through five months.

With the newly approved sports betting tax rate increase from 10% to 20%, this number would be over $1 billion dollars in taxable revenue, which translates to over $100 million in pure tax revenue for the Buckeye State. This figure could triple when legal NFL betting sites  return to action in September, giving Ohio sports bettors their first opportunity to bet an entire NFL season.

Aside from the tax rate increase, the Ohio budget also includes a measure to protect Ohio athletes from harassment. Section 737.20 of the sports gaming exclusion list reads “Allows CAC to exclude a person from participating in sports gaming in Ohio if the person has threatened violence or harm against a person who is involved in a sporting event, where the threat was related to sports gaming and made before, during, or after a sporting event.”

The legal sports betting aspects are minor features of a massive $85.8 billion dollar Ohio budget.

News tags: Mike DeWine | Ohio | Ohio Casino Control Commission