Ohio Gov. Mike DeWine is pushing to raise sports betting taxes again.
In his 2026-27 budget, DeWine proposed doubling the Ohio sports betting tax rate to 40% from 20%. In his budget in 2023, DeWine doubled the tax rate to 20% from 10%.
Ohio lawmakers legalized sports betting in 2022 with a 10% tax rate.
Raising Ohio sports betting taxes
DeWine wants to use the increased tax revenue on youth sports and stadium projects. The increase could net the state up to $180 million. The initial 10% tax rate projected to bring the state $35 million annually.
The Cleveland Browns are looking to build a new stadium, while the Cincinnati Bengals are hoping to renovate their stadium.
“It seems to be only just and fair that some stadiums be paid for by them, and it seems also fair that our young people, who you know they are targeting, will get some benefit by being able to play sports,” DeWine said.
Already legislative opposition
In November, outgoing Sen. Niraj Antani filed a bill to cut Ohio sports betting taxes back to 10%. He argued that the tax increase put the state at a regional and national disadvantage.
A report in summer 2024 from the Study Commission on the Future of Gaming in Ohio also opposed the 20% tax rate. A Democratic lawmaker said the legislature should monitor the situation to see how it affects the industry. Meanwhile, three Republican lawmakers called the 2023 tax hike premature.
“This hampered the growth that was occurring and made other companies think twice about coming to Ohio to invest,” they wrote. “As future General Assemblies look at making changes to the sports gaming platform or implement new forms of gaming, they must keep those who are going to be making the investments in mind.”
Proposed sports betting hikes
Multiple states are looking to increase sports betting tax rates this year.
Maryland Gov. Wes Moore doubled the tax rate in his proposed budget to 30% from 15%. Tax hikes have also been floated in states like Indiana, Louisiana and Michigan.
Last year, Illinois implemented a tiered tax system from 20% to 40%, depending on revenue. The state’s sports betting industry started with a 15% rate.
Ohio sports betting revenue
Since sportsbooks in Ohio launched in January 2023, they have taken $16.4 billion in wagers and generated $1.8 billion in sports betting revenue.
That has sent $314 million to the state coffers.