Ohio lawmakers have passed an amended version of Gov. Mike DeWine’s proposed budget, but not before removing a massive sports betting tax hike.
DeWine proposed increasing the Ohio sports betting tax rate to 40% from 20%. It would have been the second doubling of the rate in two years after DeWine doubled it in 2023.
Lawmakers scrubbed the increase before passing the amended budget last week, 60-39.
Ohio sports betting tax increase
Shortly after the state launched sports betting in January 2023, DeWine included the increase to 20% from 10% in his budget. When he revealed his budget proposal this winter, DeWine again proposed doubling the rate. The increase was included to help pay for stadium constructions and renovations and youth sports education in Ohio.
While lawmakers passed the 2023 increase, there did not appear to be much appetite this time around. Last year, the legislature concluded a report on the gambling market, including multiple lawmakers suggesting that the initial hike was premature.
Last month, the House Finance Committee chair, Rep. Brian Stewart, said proposed tax rates would likely be cut, including sports betting and marijuana. Stewart told the Statehouse News Bureau, “It’s very unlikely we include tax increases in this budget.”
Tax hike proposals across the US
This week, lawmakers in North Carolina are mulling their own doubling of the state’s sports betting tax rate. That could take the Tar Heel State to 36% from 18% on sports betting revenue.
Maryland Gov. Wes Moore wanted to double the sports betting tax rate to 30% from 15%. After an agreement to raise it just 5 percentage points, the push did not succeed.
New Jersey Gov. Phil Murphy also proposed a tax hike to 25% for sports betting and online casino revenue. That proposal was met with opposition.
Other increases were floated in states like Indiana, Louisiana and Michigan.
