- The Ohio legislature approved the state’s fiscal year 2024-2025 budget today
- The budget includes an increase from 10% to 20% for the state’s sports betting tax rate
- Gov. Mike DeWine (R) pushed for the sports betting tax rate increase earlier this year
Ohio sports betting is likely going to become costlier for sports betting operators very soon.
The Ohio House of Representatives and Senate agreed to a new state fiscal year 2024-2025 budget this afternoon. The $85.8 billion state budget includes an increase of the Ohio sports betting tax rate from 10% to 20%, which comes only six months after the state’s sports betting launch.
If officially approved by both legislative bodies later today (a vote is expected) and signed by Gov. Mike DeWine (R), the budget will likely go into effect later next week.
Here is the confirmed Ohio sports betting tax rate increase in the newest approved budget.
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Sports Betting Tax Rate Hike
It’s been a battle between the legislative bodies and DeWine regarding the proposed sports betting tax rate increase for the last several months.
DeWine suggested increasing the rate to 20% in his proposed budget in February, just one month after sports betting launched in the state. However, in April the Ohio House of Representative approved their own version of the state budget that did not include the increase.
Most recently, however, the Senate amended the House version of the budget and included the tax rate hike. The Senate approved the budget on Thursday, June 15, by a 24-7 vote, but did not specifically comment on the sports betting tax increase during floor debate.
The House of Representatives voted by a 3-1 margin last week to not concur with the Senate-amended budget.
While the sports betting tax increase will have some large impacts on the state’s sports betting market, the 10% increase is peanuts in a proposed $85.8 billion state budget. A provision that would allow Ohio’s three most populous counties to house up to seven brick-and-mortar sportsbooks, up from five in the current sports betting law, was not included in the final budget.
The new tax rate will go into effect on July 1, 2023.
More Than $50 Million in Taxes Through May
Ohio’s sports betting market has been booming since its January launch. Through its first five months Ohio has generated more than $507.08 million in taxable revenue, which translated to more than $50.7 million in tax revenue at its current 10% sports betting tax rate.
At a 20% tax rate, that figure would have doubled to $101.4 million in taxes for Ohio.