The same governor that wants to squeeze as many tax dollars as possible out of Ohio sports betting now wants to handicap that market by removing prop bets.
On Thursday, Gov. Mike DeWine called on the Ohio Casino Control Commission to remove prop betting from the state’s sports betting market. He specifically called out the ongoing investigation behind two Cleveland Guardians pitchers potentially breaking MLB betting rules as well as threats directed toward college athletes.
The OCCC told LSR Friday it is “gathering information” on DeWine’s request.
“The Ohio Casino Control Commission (the “Commission”) works closely with Governor DeWine’s Office and General Assembly in serving the citizens of Ohio and protecting the integrity of gaming in the State,” said Assistant General Counsel Emily Berner. “To that end, staff is gathering information for the Commission to consider. The Commission will announce its next steps in the upcoming days.”
DeWine wants more and more from sports betting
Ohio sportsbooks had barely finished their first month of legal operations when DeWine decided he wanted to double the state’s sports betting tax in his budget proposal in February 2023.
Legislators went back and forth for years on what exactly Ohio’s sports betting market should look like. In late 2021, a bill eventually passed both chambers with a 10% tax rate on sports betting revenue.
The idea ruffled some legislative feathers at first, but the 20% tax rate survived budget negotiations and was effective as of July 1, 2023. A bill to roll that tax rate back to its original 10% failed in 2024.
The tax rate was back in headlines again this year when DeWine once again doubled the tax rate to 40% in his 2026-2027 fiscal biennial budget. That increase was eventually removed from the budget, though the push for more taxes did not end there as a senator introduced a bill for a handle tax in May.
Ending prop bets in Ohio will not help taxes
If DeWine wants to maximize the tax dollars flowing from sports betting, shutting down prop bets is the last thing he should want.
Just how big the prop betting market is in the US is not clear. Between pre-game props and in-game betting, though, prop bets as a percentage of handle could make up 50% or more for most operators.
DeWine is specifically targeting micro prop bets, or live bets on a specific play in a game. In more mature sports betting markets like the United Kingdom, live betting accounts for around 70% of handle.
Ohio’s sports betting operators paid $180 million in taxes in 2024.
Ohio has trimmed sports betting menu before
This would not be the first time the OCCC wiped some legal bets off the menu.
The regulator ended college player props in February 2024 after DeWine backed a request from NCAA President Charlie Baker to do so.
This time, the story is unfolding the other way. DeWine is asking the commission to shut down prop bets and wants the six major professional US sports leagues to support the decision.
