Ohio State Senator Niraj Antani has introduced legislation that proposes a reduction in the tax imposed on sports betting operators in the state.
When sports betting in Ohio first launched on January 1st, 2023 the tax rate was set at 10%. However, during the summer state lawmakers voted to double the tax rate to 20% through the state budget.
The move to double the tax rate was supported by Governor Mike DeWine less than a month after the industry launched. At the time he cited the multiple regulatory actions taken against sports betting operators as reasons for higher taxes. These included fines levied at BetMGM, Caesars and DraftKings for alleged violations of state regulations with regards to responsible gambling messaging. DraftKings was also fined a further $350k for emailing promotions to people aged under 21 while Barstool was fined for promoting sports betting registrations at a college event.
Senator Antani’s Bill 190 challenges the state’s changing of the tax rate and proposes that it be returned to the original rate of 10%. Antani stated that the imposition of an increased tax rate could have a negative impact on an emerging market. He also stated that increased taxes could result in less favorable odds for bettors and fewer promotions and incentives for customers. There are also fears that sports betting operators may exit the state as a result of lower profit margins.
Since sports betting launched in January, Ohioans have wagered over $5.9 billion on sports with October being the second highest single month handle since the start of the year. The state has now collected over $105.6 million since January.
Year-to-Date Sports Handle, Revenues & Taxes in Ohio
| Period | Total Handle | Sportsbook Revenue | Win % | Adjusted Sportsbook Revenue | State Taxes |
|---|---|---|---|---|---|
| Jan 2023 | $1,114,101,739 | $209,049,302 | 18.76% | $209,055,880 | $20,922,359 |
| Feb 2023 | $639,795,553 | $82,879,568 | 12.95% | $82,987,169 | $8,306,004 |
| Mar 2023 | $738,613,175 | $95,313,124 | 12.90% | $95,346,224 | $9,551,057 |
| Apr 2023 | $522,703,584 | $63,819,857 | 12.21% | $63,898,463 | $6,405,348 |
| May 2023 | $447,477,360 | $57,951,152 | 12.95% | $58,002,520 | $5,819,393 |
| Jun 2023 | $363,066,723 | $32,604,975 | 8.98% | $32,747,673 | $6,547,122 |
| Jul 2023 | $331,931,139 | $37,229,873 | 11.22% | $37,237,844 | $7,458,022 |
| Aug 2023 | $379,531,071 | $40,786,643 | 10.75% | $40,777,284 | $8,155,456 |
| Sep 2023 | $690,378,913 | $81,533,401 | 11.80% | $81,767,838 | $16,353,567 |
| Oct 2023 | $746,298,634 | $80,228,276 | 10.75% | $80,577,223 | $16,115,444 |
| Totals | $5,973,897,891 | $781,396,171 | 12.33% | $782,398,118 | $105,633,772 |
Image credit: Roger DuPuis / CC BY-NC-ND 2.0 DEED
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.