Ohio Governor Proposes Sports Betting Tax Increase

• Gov. Mike DeWine (R) is proposing another increase to the state’s sports betting tax rate
• DeWine is proposing increasing the sports betting tax rate from 20% to 40%
• Ohio previously increased the rate from 10% to 20% in 2023

Ohio lawmakers are here to propose sports betting tax rate increases and chew bubblegum….and they’re all out of bubblegum.

Gov. Mike DeWine (R) presented his two-year budget plan this week, which includes an increase to the state’s sports betting tax rate from 20% to 40%.

Ohio lawmakers previously agreed to increase the state tax rate from 10% to 20% in 2023, just several months after launching sports betting.

Millions More in Tax Revenue

According to The Columbus Dispatch, DeWine presented plans for the state’s 2026/2027 $218 billion budget on Monday.

The sports betting tax rate increase plan will bring in an additional $130 million to $180 million in revenues per year, DeWine said.

A new fund will be created as well, he noted, to help pay for professional sports facilities and youth sports education. The Cincinnati Bengals and Cleveland Browns have both expressed interest in either refurbishing their current stadiums or potentially building new facilities.

“It seems to be only just and fair that some stadiums be paid for by them and it seems also fair that our young people, who you know they are targeting, will get some benefit by being able to play sports,” DeWine said to The Columbus Dispatch.

The budget will be in effect from July 1, 2026, through June 30, 2027. Lawmakers will decide on the intricacies of the budget over the next few months and DeWine will have to sign a budget bill by the end of this June.

Ohio Not Afraid to Raise Sports Betting Taxes

This would be the second time Ohio lawmakers have agreed to raise the state’s sports betting tax rate since launching in January 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.

The Senate approved the budget by a 25-6 vote while the House approved the document by a 67-30 vote.

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 since the state launched sports betting.