Ohio Lawmaker Floats Sports Betting Tax Rate Decrease

• Sen. Niraj Antani (R-6) introduced a bill to reduce Ohio’s sports betting tax rate
• Antani’s legislation hopes to reduce rate from 20% to 10%
• The Buckeye State increased its sports betting tax rate last year from 10% to 20%

An Ohio lawmaker is hoping to reduce the state’s sports betting tax rate back to its original 2023 rate.

Sen. Niraj Antani (R-6) introduced SB 190, a bill to decrease Ohio’s sports betting tax rate from 20% to 10%, re-installing the original rate when the state launched sports betting on Jan. 1, 2023.

Ohio Gov. Mike DeWine (R) signed the 2023 state budget on July 3, which included a tax rate increase to 20% just seven months into the state’s sports betting history.

Back to 10% Tax Rate?

Antani introduced the bill during Ohio’s current “lame-duck” legislative session. In his submitted testimony, Antani noted that Ohio is currently the sixth highest taxed state out of the 38 states with legalized sports betting.

“The lowest in the country are Iowa and Nevada, three times lower than our rate. Our border states, Kentucky, Michigan, Indiana, and West Virginia, now all have significantly lower tax rates. This puts us at a significant regional and national disadvantage. As well, it makes it significantly difficult for B and C license holders to be financially feasible. 10% was a reasonable tax rate that put us in the middle of the pack,” he wrote.

Antani noted that he would “love for us to be at the 6.75%” rate, which is the lowest rate in the country, but a 10% rate is reasonable.

It’s an interesting piece of legislature, as Ohio has already shown a willingness to tinker with its tax rate. The state, of course, raised its rate less than eight months after launching sports betting to its current 20% rate.

From January 2024 through September 2024, Ohio has brought in more than $129.7 million in sports betting tax revenue. If decreased to a 10% tax rate, Ohio would have seen only $64.8 million in tax revenue over that same period of time.

Antani Also Wants iGaming

Antani’s sports betting tax rate decrease bill is not the only piece of gaming legislation the senator has introduced during the session. In September, Antani introduced SB 312, a bill to legalize iGaming in the Buckeye State. Under his legislation, each of the state’s casinos or racinos will be eligible to apply for a license to offer the new form of online casino gaming.

Antani’s bill allows each licensed state casino or racing to apply for an iGaming license and partner with up to one licensed iGaming operator. Online slots and table games would be taxed at a rate of 15%. His legislation establishes the Ohio Casino Control Commission as the regulator for the best online casinos.

Casinos and iGaming operators would be eligible to apply for an internet casino gaming permit and internet casino gaming associate permit, respectively. Each license would be available for an initial $300,000 fee and an annual renewable fee of $250,000. A nonrefundable application fee of $100,000 will be required as well.

According to his bill, each licensed casino and iGaming operator will also be required to pay $250,000 annually into the problem casino gambling and addictions funds.

The legislation also sets the number of affiliate marketing licenses in the state at a maximum of five. Each affiliate will be required to pay $25,000 for a three-year license, with a $10,000 initial application fee.

However, iGaming faces long odds in the state. A 354-page study on the future of Ohio gaming was published earlier this year, which saw support split on iGaming and iLottery legalization in the state.