If approved, this would mark the second time Ohio has doubled its sports betting tax since legalization in 2023, when the initial rate was set at 10%. The move would place Ohio among the highest-taxed sports betting markets in the country, second only to New York’s 51% rate.
A Steep Climb for Operators
DeWine justifies the proposed increase as a necessary measure to fund youth sports and professional stadium projects, including the Cleveland Browns’ pursuit of a new domed stadium in Brook Park.
“These sports gaming [groups] are extremely aggressive… They’re in your face all the time,” DeWine said. “They’re getting Ohioans to lose massive amounts of money every year, and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.”
The proposed tax hike is projected to generate between $130 million and $180 million annually, significantly bolstering the state’s coffers. Under DeWine’s plan, the revenue would be funneled into a newly created “Sports Construction & Education Fund,” which could cover up to 40% of stadium construction and renovation costs.
Industry and Legislative Pushback
The Ohio sports betting industry has fiercely opposed the tax increase, warning of long-term consequences for both operators and consumers. Scott Ward, Vice President of the Sports Betting Alliance (which represents major sportsbooks like DraftKings, FanDuel, BetMGM, and Fanatics), criticized the move as an arbitrary and excessive financial burden.
“This would amount to a 400% tax increase over a two-year period,” Ward said. “Upstanding American businesses, who work closely with state regulators, shouldn’t have to fear government arbitrarily raising their taxes by exorbitant amounts.”
Ward also argued that the higher tax rate could lead to
“worse products for customers, de-incentivize investment through sportsbooks’ community partners, and leave far less funding for future responsible gaming initiatives.”
He warned that this could push Ohio bettors toward unregulated offshore sportsbooks, which do not contribute tax revenue or provide consumer protections.
Beyond industry concerns, DeWine’s proposal has received a mixed reaction from state lawmakers. Some Republican legislators, including outgoing Sen. Niraj Antani, have already pushed back against previous tax hikes, arguing they place Ohio at a competitive disadvantage.
A report from the Study Commission on the Future of Gaming in Ohio also warned that the 20% tax rate had already hampered industry growth.
House Finance Committee Chair Rep. Brian Stewart acknowledged the potential for debate, stating,
“We’ve not even finished two football seasons, and now we’re talking about quadrupling that tax? I think that’s going to generate a lot of discussion.”
Meanwhile, some local officials have welcomed DeWine’s proposal as a creative way to fund stadium projects without tapping into general taxpayer funds.
Hamilton County commissioners, who have been seeking financial assistance for renovations to Paycor Stadium (home of the Cincinnati Bengals), praised the plan, calling it a
“smart, sustainable funding solution.”
As the Ohio legislature takes up the budget proposal, the battle over raising Ohio gambling taxes is far from over. With strong resistance from both industry leaders and skeptical lawmakers, DeWine’s plan will face significant scrutiny before any final decision is made.
