Ohio’s Second Betting Tax Hike Proposal Loses Traction

While many states have been increasing their gaming and sports betting taxes, Ohio’s new tax hike proposal seems unlikely to pass amid bipartisan opposition.

DeWine Wants to Raise the Betting Tax to 40%

Ohio Governor Mike DeWine has long been bullish on raising the sports betting taxes even further and ensuring that harmful industries return some of the money they take to the state. As a result, he championed a budget proposal outlining tax increases on sports betting, cigarettes, and cannabis.

The governor’s measure suggests doubling the tax on sportsbooks to a staggering 40%. It is worth noting that, if passed, this would make the second time the sports betting tax has been doubled in two years. In 2023, Ohio lawmakers voted in favor of raising the tax from 10% to 20%.

Governor DeWine, however, believed that this was not enough. He argued that Ohioans are losing huge amounts of money every single month, every year, and therefore it is “only just and fair” that Buckeye stadiums are paid for by sportsbooks.

The extra money generated by the tax hike would fuel a sports project fund. According to estimates, the measure would generate up to $130 million for sports facilities across Ohio. However, the governor’s measure did not resonate with other Buckeye lawmakers.

The Proposal Faces an Uphill Battle

Gov. DeWine’s proposal was opposed by both his opposition and his fellow party members. As it looks, most Republicans agree that budget changes are needed but do not necessarily see tax hikes as the way to go.

Brian Stewart, chair of the Ohio House Finance Committee, said that he does not support DeWine’s tax increases. He added that many other lawmakers agree with that, including the majority of Republicans.

While Stewart admitted that he cannot say with absolute certainty that the proposal would fail, he said that it will be facing an uphill battle.

Sports Franchises Are Looking for Funding

DeWine’s push for higher taxes came at a time when major sports franchises were seeking additional funding. The Cleveland Browns, a local football team, is currently looking for some $600 million in state-backed bonds for its new stadium in Brook Park.

Earlier this week the franchise’s owner, Haslam Sports Group, put forward an up-front payment of $38 million in exchange for the bonds.

The future of the stadium, however, remains uncertain as some believe that the new stadium might cannibalize economic activity from downtown Cleveland, instead of fostering further growth. However, the team’s owners said that this economic activity would instead attract entirely new revenue streams.