Ohio Governor Proposes Doubling Sports Betting Tax Rate to 20%
Ohio Governor seeks to double tax rate for sports betting from 10% to 20% in response to rule violations, but faces industry pushback.
Ohio Governor Mike DeWine has proposed a tax increase on sports betting from 10% to 20% as part of his budget proposal for the 2024-25 fiscal years. The revenue generated by the tax hike would go towards schools for athletics, extracurricular activities, problem gambling, and administrative costs associated with overseeing sports betting.
The proposed tax increase comes in response to several sports betting operators, including DraftKings, Penn Sports Interactive, and BetMGM, receiving fines for violating state laws on their ads and targeting underage people.
DeWine's budget also includes provisions that prohibit describing promotional gaming credits as "free" or "risk-free" and excludes bettors who threaten violence or harm against people involved in sporting events related to sports gaming.
The Ohio House Finance Committee is currently examining DeWine's budget, which will continue through June.
Operators in New York have also raised concerns about the state's record-high tax rate of 51%, which they believe will harm the gambling landscape in the state.