- Gov. Mike DeWine (R) is proposing another increase to the state’s sports betting tax rate
- DeWine is proposing increasing the sports betting tax rate from 20% to 40%
- Ohio previously increased the rate from 10% to 20% in 2023
Ohio lawmakers are here to propose sports betting tax rate increases and chew bubblegum….and they’re all out of bubblegum.
Gov. Mike DeWine (R) presented his two-year budget plan this week, which includes an increase to the state’s sports betting tax rate from 20% to 40%.
Ohio lawmakers previously agreed to increase the state tax rate from 10% to 20% in 2023, just several months after launching sports betting.
Millions More in Tax Revenue
According to The Columbus Dispatch, DeWine presented plans for the state’s 2026/2027 $218 billion budget on Monday.
The sports betting tax rate increase plan will bring in an additional $130 million to $180 million in revenues per year, DeWine said.
A new fund will be created as well, he noted, to help pay for professional sports facilities and youth sports education. The Cincinnati Bengals and Cleveland Browns have both expressed interest in either refurbishing their current stadiums or potentially building new 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,” DeWine said to The Columbus Dispatch.
The budget will be in effect from July 1, 2026, through June 30, 2027. Lawmakers will decide on the intricacies of the budget over the next few months and DeWine will have to sign a budget bill by the end of this June.
Ohio Not Afraid to Raise Sports Betting Taxes
This would be the second time Ohio lawmakers have agreed to raise the state’s sports betting tax rate since launching in January 2023.
Lawmakers approved an increase from 10% to 20% to the tax rate not even eight months into the state’s sports betting program. The new tax rate went into effect on July 1, 2023.
The Senate approved the budget by a 25-6 vote while the House approved the document by a 67-30 vote.
DeWine initiated the 2023 increase as well, proposing the new tax rate in his budget plan. He actually stumped for the increase in February 2023, just one month since the state launched sports betting.
Ohio Governor Mike DeWine recently announced a proposal to increase the tax on sports betting in the state. The proposal comes as Ohio looks to capitalize on the growing popularity of sports betting and generate additional revenue for the state.
Under the current law, sports betting in Ohio is taxed at a rate of 10%. Governor DeWine’s proposal would increase this tax rate to 20%, effectively doubling the amount of revenue generated from sports betting activities.
The increase in the tax rate is intended to help offset the costs associated with regulating and overseeing the sports betting industry in Ohio. The state would use the additional revenue to fund programs and initiatives that benefit Ohio residents, such as education, healthcare, and infrastructure projects.
Supporters of the proposal argue that a higher tax rate on sports betting is necessary to ensure that the state can effectively regulate the industry and protect consumers. They also believe that the increased revenue generated from the tax will benefit Ohioans in the long run.
Opponents of the proposal, however, argue that a higher tax rate could drive sports bettors to illegal or offshore betting sites where they would not be subject to state regulation or taxation. They also believe that a higher tax rate could discourage potential sports betting operators from entering the Ohio market.
The proposal is still in the early stages of consideration, and it remains to be seen whether it will ultimately be approved by the Ohio legislature. However, Governor DeWine’s push to increase the tax on sports betting reflects a growing trend among states looking to maximize revenue from this rapidly expanding industry.
