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Ohio senator proposes reducing sports betting tax to 10%
Niraj Antani, an Ohio state senator who has a significant role in sports betting legalization in 2022, now suggests reducing sports betting taxes from 20% to 10% in Ohio, where sports betting is legal.
According to Antani, Ohio’s current tax of 20% puts the state at a competitive disadvantage when compared to others both in the region and nationwide. Ohio’s tax rate on sports betting is higher than in neighboring states Kentucky, Michigan, Indiana, and West Virginia. This can harm smaller betting businesses and limit their growth, specifically affecting fans.
Senate Bill 190
The tax reduction bill was introduced through Senate Bill 190, urging the Senate Finance Committee to review it. If passed, the new rate would go into effect the first day of the month following its approval, providing Ohio with an opportunity to remain a key player in the rapidly growing sports betting industry.
While Antani initially wanted to suggest a 6.75% tax, he believes a return to the original 10% rate would strike a fair balance between generating state revenue and keeping the industry competitive.
Sports betting leaders in Ohio
Fanduel and DraftKings are the key players in Ohio’s sports betting market. In August, FanDuel kept dominating the market, generating $16.9 million in taxable revenue from a $165.7 million handle with a 10.2% hold. DraftKings comes next with its earnings of $16.7 million from $178.8 million in bets, with a 9.34% hold.
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