Ohio wants to double tax on sports bets

Ohio Gov. Mike DeWine has always pronounced himself a friend of sports betting and indeed, the governor was one of the industry legalization’s most vocal supporters. Now, though, DeWine believes the time to pay one’s due has come, with the state’s new two-year state budget envisaging a tax hike for betting products.

The news was reported by Statehouse News Bureau, which said that the 4,000-page plan put forward by DeWine’s office also plans to see the tax on sports betting double to 20% from 10% as of right now. The rate would help the state prop up its budget and tax companies that run mobile betting products a little more.

Should this proposal go through, Ohio would be catching up to the annual average in terms of sports betting tax more or less. Right now, the average rate of taxation for sports betting products is put at around 19%, at least according to a Bloomberg Tax report which has looked into American Gaming Association data to arrive at this conclusion.

DeWine is confident that his proposal could gather momentum though. The money would be spent to fund a range of activities, specifically on schools. The funding should go directly for athletics and other extracurricular activities. Yet, DeWine wants to address what is an important aspect of the legalized betting market – problem gambling, which can use more money to make sure that locals who are suffering from the issue are getting adequate help.

Ohio is among the first sports betting states to launch in 2023. The state launched its industry on January 1, becoming the first to have done so this year. GeoComply, a company that tracks geolocation transactions and serves as a guarantor that all transactions come from within the state, said that it had recorded 11.3m transactions over the course of the New Year's weekend when sports betting kicked off.

Ohio plays host to some of the nation's biggest sportsbooks, including FanDuel, DraftKings, Caesars Entertainment, BetMGM and many others. At the beginning of the regulated betting market, GeoComply estimated that there were 784,000 unique accounts placing a bet in the Buckeye State. Emboldened by these early numbers, the governor is now seeking to reap further benefits for the state coffers.

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