Ohio Considers Doubling Its Sports Betting Tax Again

Ohio lawmakers are once again seeking a tax hike. The state, doubled its sports betting tax in 2023, is looking to do so again, citing the industry’s growth as the reason.

DeWine Seeks to Recover Some of the Money Sportsbooks Take

In the 2026-2027 budget, Governor Mike DeWine proposed raising the sports betting tax from 20% to 40%. While some believe that this would put a strain on sportsbooks, he argued that this is a direct response to the rapid expansion of betting.

DeWine pointed out that operators are very aggressive in their marketing efforts and sport an “in your face” approach to promoting their products. The governor added that, as a result, Ohioans are losing huge amounts of money every single month, every year. Because of that, he believed that it is “only just and fair” that Buckeye stadiums are paid for by sportsbooks.

For context, the tax hike would generate up to $130 million for sports facilities across Ohio. If Ohio passes the tax hike, this money will be distributed by a group appointed by the governor and the legislature.

Operators Warned That They Might Have to Cut Costs

As expected, operators were less thrilled by the proposal. Jeremy Kudon, president of the Sports Betting Alliance (SBA), weighed in on the matter, highlighting certain problems that the measure could cause. He emphasized that once licensed operators are required to pay over 20% of their GGR in taxes, especially in states that charge a market access fee as well, they are forced to cut other costs.

As a result, tax hikes could lead to layoffs or alternatively limit their sponsorship efforts. In the latter case, this would ultimately deprive sports organizations of potentially lucrative deals.

Another argument that operators in similar circumstances have made is that higher costs may limit legal operators’ ability to remain competitive against the black market.

Other Markets Are Eyeing Higher Taxes Too

In any case, tax hikes have remained one of the hot topics of the US industry. Taxes across the US are not uniform and some states are much more business-friendly than others.

New York and Pennsylvania, for example, take the biggest cut from operators’ GGR, making these markets especially difficult to navigate.

In the meantime, Maryland is likewise discussing doubling the sports betting tax rate to 30%. This measure was proposed by Governor Wes Moore who likewise believes that sportsbooks should be taxed more.

Michigan, on the other hand, narrowly avoided a tax increase as a bill that proposed a very modest increase fell through.

The American states, however, are not the only jurisdictions that have been discussing such measures. A few months ago, France, despite being indecisive at first, approved tax hikes across a variety of industries, including gambling. The tax hikes also applied to other industries often associated with the decline in public health, including the tobacco and soft drink industries.

Great Britain, on the other hand, is still discussing a statutory levy that would force operators to fund gambling research, education and treatment.