Ohio Governor Mike DeWine is reportedly pushing to double the current sports betting tax rate in the FY2024-25 state budget.
According to reports, DeWine is unhappy with the revenues collected since sports betting in Ohio launched earlier this year and has proposed a tax hike from the current 10% to 20%.
Although the Ohio Casino Control Commission has yet to release its revenue data since the industry launched on January 1st, projections put the overall sports betting handle at around $10 billion for the year. At the current tax rate of 10% and with player winnings and the cost of operations taken into account, this would mean taxes of $10 million per year. However, there is no guarantee that it will reach that figure.
In comparison, New York sports betting with its 51% tax has collected over $700 million in its first year of mobile sports betting. While local reports suggest that DeWine is not inclined to push for a comparative rate in Ohio, he does feel that the industry should be putting more back into the local economy.
The current rate of 10% is also well below the nationwide average with most states collecting taxes at a rate of close to 20% or more. Ohio is also one of the only states that does not allow promotional credit deductions for the first four years. After this, sports betting operators can only take promotional credit deductions that correspond to 10% or less of their revenue for a further four years. It then increases to 20% following the company’s eighth year in business.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.