November 14, 2024 3 min read

likes:

Fact-checked by Stoyan Todorov

Ohio Senator Proposes Reduction of Sports Betting Tax to 10%

In his written statement to the committee, Antani argued that the 20% tax rate, introduced as part of Ohio's 2024-2025 state budget, places the state at a competitive disadvantage within the region

Ohio State Senator Niraj Antani wants to change how sports betting gets taxed in Ohio. Antani led the charge to make sports betting legal in Ohio in 2022. Now, he thinks the tax rate should drop from 20% to 10%, which is what he first suggested. He has put this idea into Senate Bill 190 and asked the Senate Finance Committee to look it over.

Sen. Antani Argues Ohio’s 20% Sports Betting Tax Harms State’s Competitiveness

In his written statement to the committee, Antani claimed that the 20% tax rate, which became part of Ohio’s 2024-2025 state budget puts the state at a competitive disadvantage in the region and across the country, reported Journal-News. He pointed out that Ohio now ranks sixth highest in sports betting tax rates among the 38 states that have made the practice legal. To illustrate his point, he mentioned that states like Iowa and Nevada have tax rates much lower than Ohio’s, with rates about three times less than what Ohio charges.

Antani pointed out that nearby states such as Kentucky, Michigan, Indiana, and West Virginia offer better tax conditions, which could draw business away from Ohio. He cautioned that keeping a higher tax rate might hurt local sports betting fans and create financial problems for smaller betting companies possibly slowing down growth in the industry.

Antani noted that he would prefer to have a 6.75% tax rate, which matches the lowest in the country, however, going back to 10% would be a fair middle ground. He believed that the original 10% rate was well-balanced putting Ohio in a good position in the market when the state first kicked off its sports betting program in 2022.

Senate Bill 190 Seeks to Balance State Revenue and Market Stability

Governor Mike DeWine suggested raising the tax to 20%, which the Ohio Legislature approved. This change aims to boost state income from sports betting. Right now, most of the tax money — 98% — goes to fund education, while the leftover 2% supports the Problem Sports Gaming Fund to help fight betting addiction.

Despite the financial benefits touted by supporters of the increased tax, Antani thinks a lower rate would still make good money for the state. He believes it would also create a better market that lasts longer and appeals more to both companies and bettors.

Senate Bill 190 aims to change Section 5753.021 of the Ohio Revised Code cutting the tax on sports betting income from 20% to 10%. If lawmakers pass this bill, it will come into force on the first day of the month after it becomes law. This change shows Antani’s goal to balance making money for the state with helping the industry grow and stay competitive. He wants a tax system that gives Ohio its share in a fast-changing field.

Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.

Leave a Reply

Your email address will not be published. Required fields are marked *