In Columbus, Ohio, Governor Mike DeWine has introduced a budget plan that seeks to fund new sports stadiums without tapping into taxpayer money. Instead, he proposes using a portion of the revenue from sports betting.
DeWine wants lawmakers to increase the tax rate on sports betting profits from 20% to 40%. He argues that Ohioans lose millions to sports betting companies daily, and it’s time for these businesses to contribute more back to the state.
“These companies take money out of Ohio. They should pay their fair share, and this tax increase will make that happen,” he stated.
The governor’s plan includes establishing a Sports Facilities Construction and Sports Education Fund. This fund would help finance professional sports venues and support youth sports programs, making it easier for kids to participate in sports and school activities.
Ohio took its time to enter the sports betting market after the U.S. Supreme Court legalized it in 2018. The state studied the issue for four years before implementing a 10% tax on sports book profits. After seeing significant betting activity in 2023, the tax was quickly raised to 20%.
In 2024, this resulted in $180 million in tax revenue for Ohio, but it also meant that $723 million went to out-of-state sportsbooks. In comparison, states like New York and Pennsylvania have much higher tax rates, which could push Ohio’s tax rate to the fourth highest if the proposal passes.
Industry analysts have expressed concern about how this tax hike may affect advertising and promotions. Ryan Butler, a senior editor for Covers.com, mentioned that this could lead to changes in how sportsbooks operate, potentially affecting betting odds.
Interestingly, nearly all bets in Ohio are placed online, and retail sportsbooks have struggled, with many reporting losses. DeWine’s tax increase proposal has surprised many in the industry, leading to questions from lawmakers about its implications.
Discussions surrounding this proposal are likely to continue as lawmakers weigh the effects it may have on the state’s gaming industry.
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Source linkBrowns,DeWine,Sports betting
