Ohio Governor Renews Push to Double Sports Betting Tax Rate

Lawmakers and sportsbooks are set to square off once again in the Buckeye State.

Ohio Governor Mike DeWine (R) has announced he will again push to double the tax rate on sports betting operators. The move comes after DeWine successfully raised the rate from 10% to 20% in 2023. He has cited concerns over how much money sportsbooks are collecting from residents for his desire to double the rate again.

If DeWine succeeds, the tax rate would be set at 40%.

DeWine Decries Aggressive Sportsbook Tactics

The Ohio Governor expressed concerns about sportsbooks’ aggressive tactics, which have resulted in more losses for Ohio bettors. DeWine doesn’t think sports betting regulations need to be updated, but sportsbooks should pay their fair share.

“These sports gaming [groups] are extremely aggressive… They’re in your face all the time. They’re getting Ohioans to lose massive amounts of money every year, and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.” DeWine shared with the Ohio Capital Journal.

These concerns echo those of federal lawmakers, who are considering several bills that would increase regulations over the industry. 

States Struggling to Raise Rates

Ohio is one of the few states that has successfully increased the operator tax rate. Many other states have tried but failed due to immense opposition from sportsbooks. The main roadblock has been the threat of watered-down odds and fewer promotions from sportsbooks. This has led bettors to oppose the hikes, and almost all attempts have failed.

DeWine’s current effort could change how these battles between lawmakers and the industry are fought. His focus on how this is hurting the bettor may resonate as problem gambling begins to spike. Combined with the $100 million+ tax revenue generated, that could sway even the most fervent bettors.

Proposal to Lower Tax Rate Also Being Considered

DeWine’s announcement comes as the state legislature considers a bill to lower the tax rate to 10%. Proponents of the bill say that the higher tax rate is actually preventing the market from reaching its actual ceiling. While it won’t match the extra tax revenue generated by a raise, the belief is that keeping the rate low will benefit the market in the long run.

The proposal to reduce the rate to 10% doesn’t seem to have much support, but it will set up an intriguing showdown in Buckeye State.