Ohio Will Not Increase Sports Betting Tax Rate in Latest Budget Deal

• Ohio lawmakers reached a deal on the new state budget
• The budget does not include an increase to the state’s sports betting tax rate
• Gov. Mike DeWine (R) proposed increasing the state’s sports betting tax rate from 20% to 40% in his proposed budget

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At least one state will be keeping its sports betting tax rate the same.

Ohio lawmakers recently agreed on the state’s new budget, but did not include a a proposed increase to Ohio’s sports betting tax rate.

Gov. Mike DeWine (R) suggested increasing Ohio’s sports betting tax rate in his own budget proposal earlier this year.

Ohio Declines to Raise Sports Betting Taxes

Ohio will not be raising its sports betting rate in the latest budget, as the Senate and House of Representative both approved a budget plan that does not include DeWine’s tax increase proposal.

In February, Gov. DeWine presented his two-year budget proposal, which included an increase to the state’s sports betting tax rate from 20% to 40%. Gov. DeWine reported an increase of this magnitude would bring in an additional $130 million to $180 million in revenues per year

Ohio lawmakers previously agreed to increase the state tax rate from 10% to 20% in 2023. Lawmakers approved an increase from 10% to 20% to the tax rate not even eight months into the state’s sports betting program. The new tax rate went into effect on July 1, 2023.

Gov. DeWine initiated the 2023 increase as well, proposing the new tax rate in his budget plan. He actually stumped for the increase in February 2023, just one month after the state launched sports betting.

The new budget will be in effect from July 1, 2025, through June 30, 2027.

Several State Have Already Increased Rates

Ohio lawmakers declined to increase the Buckeye State’s sports betting tax rate, but several states have already approved increases this year.

New Jersey Assembly and Senate leaders most recently approved increases to the state’s sports betting and iGaming rates, increasing both to 19.75% in their newest budget plan. New Jersey currently taxes iGaming and online sports betting at a rate of 15% and 13% of adjusted revenues, respectively. The Garden State consistently reports one of the stronger gaming markets in the country, and interest in increasing the gaming tax rates has certainly existed at the legislative level.

However, an industry source in New Jersey told Sports Betting Dime that through discussions with Senate and Assembly leadership, there was little support for increases to 25%, but enough interest where increases in one or both markets could be expected.

Maryland Gov. Wes Moore (D) also recently signed a bill into law to increase the state’s sports betting tax rate to 20%, up from 15%. However, Moore’s version of the budget he introduced in January included an ever larger increase to Maryland’s sports betting tax rate. Moore originally proposed an increase to 32% for the state’s rate.

Lawmakers settled on a 20% compromise.

Illinois lawmakers included a last minute plan in the fiscal year budget to charge a $0.25 fee on the first 20,000,000 online sports bets taken in the state each year. The fee will increase to $0.50 per bet for every single bet taken after the initial 20,000,000 bets.

Gov. J.B. Pritzker (D) signed the state’s budget, and new sports betting fees, into law last week. The new fees will go into effect on July 1, 2025.

Additionally, Louisiana Gov. Jeff Landry (R) signed Rep. Neil Riser’s (R-20) bill, HB 639, into law last week. The legislation will officially raise the Pelican State’s online sports betting tax rate from 15% to 21.5% and creates a new fund for D-1 universities.

The new Louisiana tax rate will go into effect on Aug. 1.