The measure, agreed upon by both the Senate and House of Representatives, will take effect on July 1, 2025 and run through June 30, 2027. This decision means Ohio’s sports betting tax will remain at 20%, despite earlier proposals to double the rate.
Steady Rate for Ohio Bettors
Governor Mike DeWine had included a plan to raise the sports betting tax from 20% to 40% in his February budget proposal. He estimated that the higher rate could generate an extra $130 million to $180 million in revenue each year.
However, lawmakers opted to leave the rate unchanged, citing concerns about the impact on bettors and the industry.
Ohio first set its current rate in 2023, less than a year after legalizing sports betting. In that initial change, the tax jumped from 10% to 20% and went into effect on July 1, 2023.
Lawmakers argued at the time that the higher rate would help fund public programs without overburdening new bettors. The latest budget decision continues this approach.
Supporters of the unchanged rate point out that Ohio has seen strong growth in sports wagering since its launch. Through March 2025, bettors had wagered more than $2.7 billion, and the state collected over $44 million in tax revenue.
Keeping the rate steady aims to maintain momentum for Ohio’s sports betting market as more operators and events join the landscape.
Changes Elsewhere in the U.S.
While Ohio held its rate steady, several other states have moved to increase gaming taxes this year. In New Jersey, lawmakers approved a raise to 19.75% on sports betting and online casino revenues, up from 13% and 15% previously. That change took effect with the state’s latest budget plan.
Maryland’s governor signed legislation boosting the sports betting tax from 15% to 20%, after initially proposing a rate as high as 32%. The compromise resulted in a moderate increase aimed at funding education and infrastructure.
Louisiana approved House Bill 639 to lift its online sports betting tax rate to 21.5%, with the new rate scheduled to begin on August 1, 2025. Lawmakers there also created a dedicated fund to support public university sports programs.
Illinois opted for a different approach by adding a small per-bet fee rather than raising its overall rate. The state will charge $0.25 on the first 20 million bets and $0.50 on each bet thereafter, starting July 1, 2025. Officials view this fee as a way to generate funds without a direct rate hike.
Overall, Ohio’s decision to keep its sports betting tax at 20% stands out as one of the few cases where lawmakers resisted increasing gaming taxes this session. Bettors and operators may see this as a sign of continued support for the industry’s early growth.
As other states experiment with different tax models, Ohio’s steady approach provides a baseline for evaluating future revenue impacts and market health.
