Ohio Governor Mike DeWine’s proposal to double the tax rate on legalized sports betting may be axed from the budget plans by members of his own party.
House Finance Committee Chair Brian Stewart has voiced opposition to the proposed tax hikes. Talking to Statehouse News Bureau, he commented: “Day 1, I don’t think anything’s dead on arrival. But I do think that, you know, any time you’re talking about tax increases in a Republican Party that’s going to get a skeptical eyebrow raise.”
Why GOP Lawmakers Are Opposing a 40% Sports Betting Tax Rate
Stewart outlined that most of his allies do not support the tax rises but suggested it may be a while before the public sees any changes to the budget.
“I don’t support these tax increases, and in my discussions with members, it’s clear that the majority of Republicans do not support them either. But we will not determine anything concrete relating to the substitute bill until we receive and deliberate on members’ amendments,” he continued.
Last month, the Governor of Ohio outlined a proposed hike from 20 percent to 40 percent on sports betting tax. He anticipated a tax revenue increase of between $130 million and $180 million each year. The funding would go towards professional sports facilities and a hike in funding for youth sports.
If the proposed tax increase goes ahead, it would be DeWine’s second time increasing the rate in the Buckeye State. In 2023, he doubled the state’s sports betting tax rate to 20 percent from 10 percent. The idea was floated just weeks after sports betting was officially signed into law.
President Donald Trump is the leader of the Republican Party, and is known as being pro-crypto and deregulation. Earlier in the year, the Ohio legislature received a bill proposing no tax on crypto gains, something that would more traditionally fit the mold of a Republican-type policy. Wider adoption of digital currencies could certainly be on the cards under Trump’s presidency. However, given the granularity of state-by-state gambling regulation, crypto sports betting seems unlikely in the short term.
“I think it’s very unlikely we include tax increases in this budget, but that’s my own view, and we will determine as a caucus what gets done in the weeks ahead,” concluded Stewart.
Republican Senate President Rob McColley was also unimpressed, telling the press: “We have to be aware that every tax credit that we introduce or every tax deduction that we introduce makes it harder for us to get to our ultimate goal — that being, eliminating the income tax or having a flat income tax in the state of Ohio.”
“It comes down to how much it’s going to cost and how it balances with the priorities of each of our chambers,” he added.
Digital Growth Driving Ohio Sports Betting
The state recently published its January 2025 gambling revenue report, and sports betting handle was $1.01 billion, the third largest in the state’s history. Online betting was the vast majority of handle, showing the digital-led growth that’s taking place in the Buckeye State.
Taxable revenue from sports betting grew 42 percent month-over-month, reaching $81.1 million. Those who are opponents of a tax hike also suggest that should taxes increase, promotional spend and general bookmaker prices may become less competitive.
Should bettors receive less value, they may be more enticed to bet through other means and explore avenues such as cryptocurrency.
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