Ohio Senator Proposes Sports Betting Handle Privilege Fee

• An Ohio Senator has introduced legislation to tax Ohio sports betting handle
• If approved, the new law would institute a 2% privilege fee on sports betting handle
• Tennessee is currently the only state in the country to tax both sports betting handle and gaming revenue

Gov. Mike DeWine’s (R) proposal to increase Ohio’s sports betting tax rate will not be approved by state legislators, but lawmakers are exploring other means to raise gaming revenues in the Buckeye State.

The latest venture? Sen. Louis W. Blessing III has introduced SB 199, a bill to set a 2% privilege fee on Ohio sports betting handle. This new fee would be on top of the state’s current 20% tax rate on total sports betting revenues.

The only other state with a privilege fee on sports betting handle is Tennessee.

Finding New Ways to Raise Revenues

Blessing III’s bill seeks to set a 2% tax rate on “the gross wagers received by the proprietor from the operation of sports gaming in this state.” The handle tax rate would impact both online sports betting and brick-and-mortar sports betting.

The legislation earmarks handle tax revenues “for the purposes of supporting interscholastic athletics and other extracurricular activities for primary and secondary school students” and the renovation or new construction of publicly owned professional sports facilities in Ohio.

Tennessee is currently the only state in the country with a privilege fee, or tax, on total sports betting handle. Tennessee gaming regulators made the change in July 2023, replacing the original 20% sports betting tax on gross gaming revenue, instead replacing it with a 1.85% tax on total sports betting handle.

There is also a current 0.25% federal excise tax on sports betting handle for every state with legalized sports betting.

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Millions in Additional Revenue

The sports betting handle tax would bring in millions more to Ohio’s coffers, but cost operators millions more in fees each month.

In 2025, Ohio sports betting customers have wagered $2,763,994,272 through March. If a 2% sports betting handle privilege fee was instituted, this would have brought in an additional $55,279,885 in revenues for Ohio.

The additional $55.3 million from the sports betting handle fee would be on top of the $44,593,443 in sports betting tax revenue the state has brought in through March.

Earlier this year, Gov. DeWine presented his two-year budget plan, which included an increase to the state’s sports betting tax rate from 20% to 40%. However, Ohio lawmakers voted to not include his sports betting tax rate increase in the budget.