New Ohio Bill Proposes Lowing Tax for Sports Betting Operators

As several states continue considering massive tax hikes, Ohio is considering a different direction.

A new bill introduced in the Buckeye State proposes reducing the state’s 20% tax rate on sportsbooks to 10%. The proposal comes a year after the Ohio Governor raised the rate. 

Ohio State Senator Niraj Antani, the bill’s sponsor, believes the higher tax rate is hurting the state’s sports betting market. He shared fears that doubling their tax rate is preventing operators from investing more and could scare off others. His concerns echo those shared by some Republicans when Gov. Mike DeWine shared his plan to raise it. 

“This hampered the growth that was occurring and made other companies think twice about coming to Ohio to invest,” A group of Republicans wrote in response to the increased rate. “As future General Assemblies look at making changes to the sports gaming platform or implement new forms of gaming, they must keep those who are going to be making the investments in mind.”

While the bill has support in the legislature, proponents will need to convince opponents and the public of the benefits of a lower rate. The state’s schools are currently benefiting from the majority of the tax revenue generated by the industry, meaning a cut could take money out of their pockets.

The Senate Finance Committee is currently reviewing the bill.

Bill to Legalize Online Casinos Also Introduced

In addition to his bill to cut the tax rate, Sen. Antani also introduced a bill to legalize online casinos. This would represent a significant expansion for the industry, which would be adding a large market as its eighth state.

While Sen. Antani hopes to legalize online casinos, he knows the bill's chances remain slim. Instead, the focus is on starting the conversation. The failure of this one will help address concerns in the next attempt, making it far more likely to succeed.