Unfiltered Insights on Ohio's Sports Betting Landscape
Defeat of Proposed Increase in Ohio Taxes for Sports Betting Businesses
By: Mike Dicey - 04/17/2025 02:50
Crucial Details to Know
- The proposed operator tax hike would have skyrocketed the tax rate to a hefty 40%.
- In 2023, Ohio already jacked up the tax rate to a whopping 20%.
- Some shrewd lawmakers are pushing for this current rate to drop back down to a more manageable 10%.
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Historical Tax Rates Overview
Ohio's sports betting industry has experienced a rollercoaster ride in terms of operator tax rates since its inception in January 2023:
- The initial tax rate on sports betting revenue was set at a relatively modest 10%.
- Not even 6 months later, in July 2023, Governor Mike DeWine's budget proposal lifted the tax rate to an astounding 20%. This unusually high 20% tax rate has persisted through June 2025.
- In February 2025, a proposition was made to increase the tax rate yet again, this time to an eye-watering 40%. However, in April 2025, the Ohio House wisely chose to avoid this unwelcomed 40% tax increase, leaving the rate at 20%.
Thus, it's important to remember:- January 2023 to June 2023: 10% tax rate- July 2023 to mid-2025: 20% tax rate
The proposed 40% tax increase in early 2025 was thrown out before it could be implemented, so Ohio currently taxes sports betting operators at 20% of their revenues[1][2][5].
Moreover, there have been discussions surrounding a "twin tax" model that includes a 20% tax on revenue and a 2% tax on the total betting handle (amount wagered), which would be unprecedented in the U.S. if it's passed, but as of yet, this hasn't been made official[2].
In a nutshell, Ohio's sports betting operator tax rate originally kicked off at 10%, shot up to 20% within the first year, and (so far) remains at 20% as of mid-2025, thanks to clearing heads in the Ohio House. The proposed 40% rate became history.
Mike Dicey's latest work delves into the potential impact of a proposed 10% drop in Ohio's current hefty 20% sports betting tax rate on online casinos and sports betting businesses. Previously, Las Vegas-based finance experts predicted significant shifts in the sports betting industry's financial landscape if the tax rate had been increased to a quoted 40%. The fallout from these decisions might also echo in broader business sectors associated with sports, such as sports clubs and event organizers.
