Sports Betting Tax in Ohio to Double Starting from 2024

Late in December 2021, Ohio legalized sports betting activities. Despite the legalization, it wasn’t until January 1 this year, that the state officially launched its legal mobile and retail sports betting market. Although the initial tax rate for sports betting operators was set at 10%, that is expected to change soon.

Starting from next year, the sports betting tax is expected to double or hit 20% on sports betting revenue thanks to a new 2024-2025 executive budget in the state. The changes to the betting tax come as a part of a budget bill labeled House Bill 33, which has successfully cleared the state’s Senate and House.

Now, judging by Tuesday’s statement by Gov. Mike DeWine, the new FY2024-2025 budget has been greenlighted, allowing the state to “make strategic investments” and at the same time provide vital support for families and communities. According to Gov. DeWine, the new operating budget enables the state to invest in its “economy, communities and families.” At the same time, the Governor pointed out that the new budget ensures the sustainable growth and prosperity of Ohio.

“This is truly Ohio’s time! Our new operating budget invests in Ohio’s economy, communities, and families and helps to ensure that our state remains the heart of opportunity and prosperity today and in the future,“

wrote Gov. Mike DeWine

Additional Tax to Benefit Different Programs

Given that the new budget is signed, the sports betting tax rate of 20% is expected to be implemented at the start of the next year. The additional proceeds from the taxation of the gambling activity are expected to fund community-focused causes like education.

Gov. DeWine said that he is proud to sign the budget that enables the state to make historic investments and at the same time “support and encourage Ohio’s children to lead happy, healthy, and productive lives than ever before.” He acknowledged the significance of supporting families and communities while providing much-needed support for people struggling with different issues.

The announcement about the new budget comes after recently, the Ohio Casino Control and Lottery Commission released its latest report outlining the performance of the state’s casinos and racinos in May. Overall, the state’s 11 racinos and casinos reported $196 million in revenue this May, representing a slight decrease when compared to the $202 million result from May 2022.