The Ohio Senate has reinserted a tax hike for sports betting sites into the state’s budget bill.
Gov. Mike DeWine’s budget plan initially proposed Ohio sports betting operators turn over 20% of their revenue to the state, rather than the current 10%. The levy applies to receipts earned from in-person and online sports betting.
However, the budget legislation, House Bill 33, had the tax hike stripped from it before it was passed by the Ohio House of Representatives in April. The Senate then reinstated the bump when it passed H.B. 33 last week.
The disagreement between the two chambers of the legislature means a conference committee will be appointed to hammer out a compromise on that and any other issues. They will have to do so as soon as possible, as the proposed tax hike was supposed to take effect on July 1.
Some things don't change
What hasn’t changed in the budget bill are certain provisions regarding “betting-related threats” made toward athletes. The legislation makes it explicit that bettors who threaten athletes can be banned from wagering in the state.
“Governor DeWine has made several well-reported comments regarding some sports betting proprietors and customers who have not followed the rules during the first month of sports betting in Ohio,” Dan Tierney, DeWine’s press secretary, told Covers in February. “The Governor’s budget included a package of reforms to encourage a marketplace where the rules and the spirit of the law are better followed.”
Legal sports betting began in Ohio in January, and so far, more than $450 million in taxable revenue has been generated by online and retail operators. With the 10% tax rate in place, bookmakers owe or paid more than $45 million to the state.
In April, there was approximately $520.6 million in sports wagering and $63.8 million in taxable revenue. While the pace of play has cooled since Ohio launched sports betting on New Year's Day, so, too, has the calendar of sporting events. A rebound in action could occur when football resumes in the fall.
