Ohio Legislator Proposes Tax Hike on Sports Betting
The Governor of Ohio, Mike DeWine, has just proposed an increase in sports betting taxes for the state. The Governor is proposing an increase from 20% to up to 40%, and the proposed increase is said to bring in as much as $130 million to $180 million in annual revenue.
Ohio Governor Mike DeWine is once again pushing for an increase in the sports betting tax rate in the state of Ohio, this time proposing to double it from 20% to up to 40%. The proposal comes as part of DeWine's newly unveiled two-year budget plan, which outlines Ohio's financial strategy for 2026 and 2027.
A second sports betting tax hike in just two years
Lawmakers in Ohio have not shied away from raising taxes on sports betting operators. The state initially launched legal sports betting in January of 2023 with a tax rate of 10%, but lawmakers quickly moved to increase that rate to 20% just months later, with the new tax taking effect on the 1st of July, 2023.
Now, DeWine is proposing yet another hike, which, if approved, would bring Ohio’s tax rate to one of the highest in the country.
Millions in additional revenue
As The Columbus Dispatch reported, DeWine's proposed budget for the 2026/2027 fiscal period totals $218 billion. He estimates that increasing the sports betting tax rate to 40% could generate an additional $130 million to up to $180 million in annual revenue.
The governor has also indicated that a portion of this new revenue will be allocated toward the creation of a new fund aimed at supporting youth sports programs and sports facilities. "It seems to be only just and fair that some stadiums be paid for by them and it seems also fair that our young people, who you know they are targeting, will get some benefit by being able to play sports," told DeWine to The Columbus Dispatch.
Potential impact on Ohio's sports scene
Ohio is home to several major professional sports franchises, including the Cleveland Browns and Cincinnati Bengals. Both teams have stated their interest in renovating their existing stadiums or constructing new sports facilities. If approved, the additional tax revenue could play a crucial role in funding these projects.
Meanwhile, a portion of the funds would also be earmarked for youth sports programs, ensuring that young athletes in Ohio benefit from the growing sports betting industry.
Legislative process and timeline
Ohio lawmakers will now review DeWine's budget proposal, with a final budget bill expected to be signed into law by the end of June. If approved, the new tax rate will take effect with the rest of the budget on the 1st of July, 2026.
DeWine's latest proposal follows a similar pattern to the 2023 increase, which was swiftly approved by the legislature. The Senate passed that increase by a vote of 25-6, while the House approved it by a 67-30 margin. Given this history, the governor's latest push for a tax hike may find substantial legislative backing once again.
Ohio's aggressive stance on sports betting taxes
Since the legalization of sports betting, Ohio has taken an aggressive approach to taxation. Few states have implemented tax increases at the rate Ohio has, and if this proposal is approved, the Buckeye State will be among the highest-taxed sports betting markets in the nation.
Stakeholders in the sports betting industry will be watching closely to see how this increase impacts the market. While higher taxes could lead to significant state revenues, there is also the question of whether it could deter operators and limit the competitiveness of Ohio's sports betting industry.
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