Ohio governor wants to hike sports betting tax to 40%
If approved by lawmakers, the Buckeye State would become one of the highest-taxed US jurisdictions with legal sports betting
Mike DeWine, Ohio’s governor, has expressed his desire to see the tax on legal sportsbook operators’ gross revenue in his state double from 20% to 40%.
Proceeds from the steep increase would be used to help pay for professional sports stadiums – including the renovation of the Cleveland Browns’ stadium – and youth sports.
Addressing reporters at a press conference for the state’s $218bn fiscal 2026-27 budget, DeWine said it was “time” to raise the tax.
As per 5 News Cleveland, he commented: “These sports gaming [groups] are extremely aggressive […] they’re in your face all the time.
“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.”
In 2023, the governor was behind the doubling of Ohio’s rate from 10% to 20%, which came into effect from July 2023 and elevated Ohio to the US jurisdiction with the sixth-highest tax on licensed operators.
The House’s finance committee will study DeWine’s 2026-27 budget proposal over the next few weeks before sending it to the Senate with any changes.
If given the green light, a 40% tax would represent a 400% increase in just a few years and would put Ohio among the most heavily taxed sports betting states in the US.
Only New York, New Hampshire, and Rhode Island are higher, each at 51%, although New Hampshire and Rhode Island are monopoly markets with a single sportsbook each: DraftKings and Sportsbook Rhode Island, respectively.
Last July, Illinois introduced a graduated system of 20% to 40%, with the highest-earning operators, namely FanDuel and DraftKings, paying the top rate on gross revenue.
Meanwhile, proposals to hike up tax rates in various states have come thick and fast of late, including Democrat Senator John Keenan of Massachusetts tabling a bill to increase sports betting tax from 20% to 51%.
Maryland Governor Wes Moore proposed taking the rate from 15% to 30% in his state as part of the 2026 fiscal budget.
Speaking at a conference on January 16, Rush Street Interactive co-founder and CEO Richard Schwartz hit out at tax hikes, saying lawmakers going after operators wasn’t the optimal way to generate additional revenue to fix budget deficits.
Figures released yesterday by the Ohio Casino Control Commission, February 3, showed Ohioans bet $8.9bn on sports in 2024, up from $7.6bn in 2023.
Yet tax collected from operators was down slightly year on year from $934m to $904m, of which 98% goes towards education and 2% is directed at tackling gambling-related harm.
There are 16 active sports betting platforms in Ohio, although a 40% tax rate would likely to mean a curtailing of promos and could potentially make some operators consider relinquishing their licenses and exiting the state.