Ohio lawmakers continue to look at ways to increase the tax haul from sports betting.
A new bill filed in Ohio, Senate Bill 199, proposes taxing the gross Ohio sports betting handle. Tennessee is the only state to tax handle.
SB 199 comes after lawmakers rejected Gov. Mike DeWine’s proposal to double the tax rate on sports betting revenue for the second time in two years.
Ohio sports betting handle tax
Sen. Louis Blessing authored SB 199. It would levy an additional 2% tax on the overall sports betting handle in the Buckeye State.
Operators could deduct the amount of federal excise tax paid, but not free play.
Blessing suggests using the funds to support publicly-owned sports facilities and interscholastic athletics.
DeWine’s proposed tax rate increase on revenue was also to help pay for stadium projects and youth sports.
Tax rate push
In 2023, DeWine doubled the tax rate to 20% from 10%, just months after the market launched.
A study by lawmakers last year concluded that the increase might have been premature.
Lawmakers rejected his proposal this year to increase it to 40%, which could have netted the state an additional $180 million annually.
Handle taxes
In 2023, a 1.85% tax on handle replaced the Volunteer State’s initial 20% tax on gross gaming revenue.
Lawmakers in a few other states have also floated handle taxes, including in West Virginia and Kentucky. Each proposal was denied.
The only other handle tax is the federal 0.25% excise tax.
Ohio sports betting revenue
Since Ohio sports betting launched in January 2023, sportsbook operators have taken $19.2 billion in wagers. The sportsbooks have generated $2.06 billion in revenue.
That has brought in $359 million in tax dollars to the state.
If the 2% tax were levied on the historic handle, the state would have collected $383 million.
