Ohio Senator Wants to Cut Sports Betting Tax in Half from 20% to 10%

Ohio is at a Competitive Disadvantage

Currently, Ohio has one of the highest sports betting tax rates among states with legal sports betting and Antani believes a lower rate will keep the state competitive with neighboring states and help the industry grow.

Antani’s proposal highlights Ohio’s tax burden compared to other states. With a 20% tax rate, Ohio is the 6th highest among the 38 states that have legalized sports betting. Iowa and Nevada have much lower rates, making Ohio less attractive to operators and limiting the industry’s growth.

By cutting the tax to 10%, Ohio can get closer to states with competitive rates and make it more attractive for companies to invest in the market.

Antani points to regional competition with nearby states offering better tax deals. Kentucky, Michigan, Indiana and West Virginia have lower tax rates for sports betting operators, giving them an advantage in attracting businesses and bettors.

Antani says Ohio’s current tax rate may scare off operators who are considering setting up shop in the state as they can find more profitable opportunities just across the border. A 10% tax rate could make Ohio more attractive and draw new operators to the region.

Local Fans and Small Operators

Another key aspect of Antani’s proposal is the benefit to Ohio’s local bettors and small operators. A high tax rate, he says, will result in higher costs to the consumer and will discourage participation and stifle growth.

Small sportsbooks will struggle to be profitable under the current tax structure and will limit competition and options for Ohio’s sports betting fans. By cutting the tax rate, Ohio can create a better environment for big and small operators and grow the industry.

Antani’s main point is Ohio can have strong state revenue with a lower tax rate and a better market for operators and players. He says a 10% tax rate will still generate a lot of revenue for Ohio without stifling the industry. This balance will allow Ohio to have a steady stream of tax income and a healthy competitive market that benefits the state and its citizens.

Antani initially proposed a 6.75% tax rate, the same as Nevada’s lowest in the country. But he sees 10% as a compromise, relief for operators and still good revenue for Ohio. When Ohio’s sports betting program launched in 2022 the 10% rate was considered the sweet spot for a competitive market and Antani thinks going back to that rate would be best for the state.