Ohio State Senator Niraj Antani wants to change the way sports betting is taxed in Ohio, in the United States. Antani led the initiative to make sports betting legal in the state in 2022.
Now, he thinks the tax rate should drop from 20% to 10%, which he initially suggested. The parliamentarian put this idea in Bill 190 and asked the Senate Finance Committee to analyze it.
20% tax on sports betting would be harmful
In his statement forwarded to the committee, Antani alleged that the 20% tax rate, which became part of Ohio’s 2024-2025 state budget, puts the state at a competitive disadvantage in the region and across the country.
He noted that Ohio now ranks sixth highest in sports betting fees among the 38 states that have made the practice legal. To illustrate his point, he mentioned that states like Iowa and Nevada have much lower taxes than Ohio, with rates about three times lower than those charged in the state.
Antani highlighted that nearby states such as Kentucky, Michigan, Indiana and West Virginia offer better tax conditions, which could drive businesses away from Ohio. He warned that maintaining higher taxation could harm local sports betting fans and create financial problems for smaller betting companies, possibly slowing the industry’s growth.
Antani noted that he would prefer to have a tax rate of 6.75%, which is the lowest in the country, however, returning to 10% would be a fair compromise. He believed the original 10% rate was well balanced, putting Ohio in a good position in the market as the state kicks off its sports betting program in 2022.
Balance between state revenue and market stability
Governor Mike DeWine suggested increasing the tax to 20%, which the Ohio Legislature approved. This change aims to increase state income from sports betting. Right now, the majority of tax money (98%) goes to funding education. But the remaining 2% supports the Problem Sports Gaming Fund, to finance aid to combat gambling addiction.
But despite the financial benefits linked to the tax increase, Antani thinks that a lower rate would still yield good money for the state. In other words, he believes that this would also create a better market, which would last longer and attract more companies and bettors.
Therefore, the proposal wants to cut the tax on income from sports betting from 20% to 10%. If lawmakers pass this bill, it would go into effect on the first of the following month.
