Ohio Gov. Mike DeWine suggested increasing the state's tax rate on sports betting from 20% to 40%, a move he thinks will yield between $130 million and $180 million annually. The state would funnel that increased revenue into a newly created Sports Facilities Construction and Sports Education Fund, supporting stadium projects and youth sports efforts.
The proposal comes as the NFL's Cleveland Browns seek public funding to renovate the team's stadium, and the Cincinnati Bengals are considering a similar project. Gov. DeWine plans to create a permanent funding source for such requests — not from the state's general fund.
The governor announced the proposed tax increase as part of his broader two-year, $60.9 billion operating budget, which the legislature must finalize by June. Ohio lawmakers will review the proposal, and both the state House and Senate should release their own versions in the coming months.
Gov. DeWine plans to create the Sports Facilities Construction and Sports Education Fund, run by a commission with members appointed by the governor's office and the legislature. The money would be put into the fund for stadium projects for professional sports teams, major and minor leagues, and youth sports education initiatives.
“These sports gaming companies … They’re getting Ohioans to lose massive amounts of money every year. And it seems to me only just and fair that some of the stadiums be paid for by a portion of it," said Gov. DeWine.
Ohio is not the only state considering a sports betting tax hike, with Massachusetts lawmakers also proposing increasing taxes from 20% to 51%.
Governor unclear on funds allocation
Gov. DeWine hasn't offered specific numbers on how much funding the state could dedicate to the Browns' stadium renovation. Still, he said the new gambling tax ensures stadium projects get funded without siphoning money from the state’s general fund. The general fund supports K-12 education and other statewide critical services and priorities.
“This proposal that I have outlined has the added benefit of no longer will we have to, at any time in the future, go to the people of the state of Ohio and say, your tax dollars will go for this stadium or that stadium,” DeWine commented.
The youth sports education component could help families with the costs of sports participation, such as buying equipment or paying for team fees. However, DeWine didn't outline how those funds would be distributed or what criteria might exist for eligibility.
If lawmakers implement this proposal, Ohio’s sports betting tax rate would be among the United States' highest. The current rate is similar to other states that legalized sports betting.The governor’s office said more information on the budget will be available in a few weeks, including specifics on how the stadium funding will be distributed.
