Sports betting in Ohio is still a relatively new product, but that does not mean its tax rate is exempt from change.
The House did not take up the proposed change in the version of HB 33 it passed in April. The Senate, however, reinserted the language into the bill, which passed the chamber Thursday.
The two chambers will head to a conference committee to discuss this and other changes, though there is not much time remaining. The bill must be signed by June 30 for changes to be effective for the July 1 start of the 2023-24 fiscal year.
Governor, sponsor largely quiet
Whether the governor’s office knows how the conference committee will go or not, DeWine’s office is not tipping its hand.
“As you know, the Governor is supportive of the measure,” his spokesperson told LSR Tuesday morning.
Rep. Jay Edwards, the sponsor of the budget bill, and his office did not reply to LSR‘s request for comment.
Ohio sports betting so far
Sports betting in Ohio is off to a strong start for both operators and the state.
OH sportsbooks have taken more than $3 billion in bets since the state launched legal betting on Jan. 1, through April. That has translated to $451 million in sports betting revenue with $45.2 million in taxes paid so far.
That $45 million in taxes reflects the fact that Ohio does not allow promotional deductions from taxable revenue. Operators have reported $447.6 million in promos through the first four months, so that would have left less than $4 million in taxable revenue if deductions were allowed.
According to an early market analysis of Ohio, residents are betting about $255 each in those first four months. That puts the state ahead of more mature markets like Indiana, Pennsylvania and Virginia.