Ohio returns to 10 percent sports betting tax

Jake Graves 3 months ago
Ohio returns to 10 percent sports betting tax

The US State of Ohio is planning to implement a sports betting tax cut to boost its gaming sector.

The proposed Senate Bill 190 will seek to cut the gross receipts tax from its current 20 to 10 percent.

This move is with the intention of revitalising the state’s sports betting industry.

Senator Antani’s controversial challenge

Initially, the tax rate for sports betting operators in Ohio was 10 percent, which was then doubled during the summer through the state budget.

Ohio’s Senator Atani then challenged this decision, citing concerns over its impact on the emerging market.

Republican Senator, Governor DeWine had converse advocated for the tax hike citing concerns about excessive advertising by operators.

Instances such as the fines implemented against DraftKings and Barstool Sportsbook were highlighted.

Tax impact

Since the tax increase, Ohioans have spent $5.2 billion on sports wagers, with $4.5 billion returning as winnings.

Most notably, the tax increase has seemingly led to a discernible cultural shift with professional and collegiate leagues, as well as sports media, now seeming to embrace legal sports betting.

Negative effects of the tax increase

Antani has argued that the higher rate has negatively influenced sportsbooks and bettors alike, leading to less favourable odds and fewer promotions. 

This according to Antani is clear evidence that the taxation rise is affecting the attractiveness of the market in Ohio.

Further to Antani’s point, former Ohio Rep. Dann Dodd has warned of potential economic consequences from the implementation of Bill 190 stating that higher tax rates may deter operators and drive existing brands out of the market, reducing Ohio’s attractiveness to the industry as a whole.

The issue of taxation

As of March 2023, 29 states in the US have legalised sports betting. Within these legislative movements, an inconsistency in taxation approaches and rates has emerged with many states remaining unsure as to what the most attractive yet effective tax rate could be. 

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