Last updated on December 6th, 2023 at 05:03 pm
When sports betting became legal at the beginning of the year, they had a sports betting tax rate of 10%. However, in July of 2023 the state made a chance to the sports betting tax by increasing it to 20%. Thus, starting in 2024, sportsbooks and sports betting operators will have to pay double the tax on their sports betting revenue. On the other hand, one Ohio senator Wants to Lower Sports Betting Tax back to 10%.
According to Pay Per Head Bookie News, Ohio State Senator Niraj Antani is challenging that sports betting tax hike. This is because he believes that it will negatively influences the emerging sports gambling market in Ohio.
Governor Mike DeWine was a big supporter of the sports betting tax increase as part of the new state budget. His reason for the tax increase was in response to aggressive sportsbook campaign. Especially since some of the major sportsbooks like DraftKings and Barstool Sportsbook had to pay fines for advertising violation. This includes mailing sportsbook ads to people below the legal betting age and hosting evens that broke the advertising rules.
This football season, Ohioans have made $5.2 billion sports wager with $4.5 billion paid out to winning gamblers.
Ohio senator Wants to Lower Sports Betting Tax to Revitalize the Industry
According to Senator Antani, the sports betting tax hike could potentially lead to significant economic consequences for Ohio.
Simply said, they believe the higher tax may discourage operator from staying in the Ohio sports betting market. In addition, they believe those wanting to open a sportsbook may go to a state with a more competitive tax.
Especially since several neighboring states have lower sports betting tax. For example, West Virginia has a 10% tax while Indiana has a 9.5% tax. In addition, Michigan has a 8.4% and 9.65% sports betting tax while Kentucky has a 9.75% and 14.25% betting tax.
Senator Antani is not alone as several other proponents of the tax hike are also arguing against it. Those in favor of lowering the Ohio Sports Betting Tax include Ohio Rep. Dann Dodd and Americans for Tax Reform.
However, one concern is that cutting the Ohio sports betting tax, could potentially impact the state’s revenue. Especially since Ohio has already made $102 million in sports betting tax revenue this year.
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