Ohio Fails Second Attempt to Double Rate
This was not the first time the Buckeye State has proposed doubling the tax rate on sports betting operators. Governor DeWin led an effort that successfully doubled the tax rate from 10% to 20% in 2023. The hike is one of the few to have succeeded in the country’s growing sports betting industry.
The successful hike in 2023 led some lawmakers to oppose making another change so quickly. The 20% rate has led to a significant increase in tax revenue, and many believe that challenging operators would put that at risk.
Some Ohio lawmakers are still calling for the rate to be dropped back to the original 10%, but those efforts have failed to gain much momentum.
Focus Shifting to Protection of the Industry
When the tax hike was initially proposed, sports prediction markets were still in their early stages. Since then, a March Madness prediction market offered by Robinhood and Kalshi has rocked the sports betting industry. As a result, Ohio has been shifting its focus to protecting its impressive sports betting market.
The Ohio Casino Control Commission (OCCC) sent a cease-and-desist letter to the prediction market operators, ordering them to cease operations in the state. However, a Nevada judge recently ruled that only the Commodity Futures Trading Commission (CFTC) has the power to regulate prediction markets. That only affected operations in the Silver State, but signals a similar ruling could be coming in Ohio.
Are Tax Rate Hikes Still Possible?
Ohio is one of the latest states to fail at raising its tax rate. While they and Illinois have both made changes in the past, no other states have succeeded in doing so since.
Ohio’s failure shows that sportsbooks are fighting harder against these hikes. Their messaging is resonating with bettors, putting lawmakers in a tricky position, especially with another round of elections coming up in 2026.
