Chavdar Vasilev is a gambling news writer with several years of experience in the iGaming industry. He started creating promotional content but soon found he loved reporting on the industry itself. Since then, he’s delivered...
Read Full BioOhio lawmakers have proposed a bill to tax handle that could make it the first state in the US to impose double taxation on sports betting.
The legislation, sponsored by state Sen. Louis Blessing, proposes adding a 2% tax on the total wagers placed in the state, in addition to the existing 20% tax on adjusted gaming revenue.
If SB 199 becomes a law, Ohio would join Tennessee as one of only two states to tax sports betting handle. However, while the Volunteer State collects 1.85% tax on the total wagers placed, it does not tax gaming revenue. That means Ohio would set a precedent in the industry.
The bill does include a provision that allows sportsbooks to deduct the 0.25% federal excise tax on handle. The newly generated proceeds would fund youth sports programs and construction and maintenance of state-owned stadiums and facilities.
How Much Would a 2% Handle Tax in Ohio Generate?
While 2% might not seem like much initially, advocates argue it would significantly increase the revenue collected from Ohio sportsbooks.
Since the January 2023 launch of sports betting, Ohioans have placed $19.2 billion in wagers. Operators have generated $2.06 billion in revenue from that amount, bringing $359 million to the state. If there were a 2% tax on the total handle, Ohio would’ve collected $383 million more.
Meanwhile, in March 2025 (the latest available data), the state collected $13.3 million in tax revenue. The 2% proposal would have brought in an extra $19.7 million.
Lawmakers Reject Gov.’s Revenue Tax Hike
Sen. Blessing’s proposal comes shortly after lawmakers rejected Gov. Mike DeWine’s proposal to double the current tax on gaming revenue to 40%.
According to the governor’s budget proposal projections, the hike would have brought the state an extra $130 to $180 million annually.
Like SB 199, DeWine planned to use the funds to maintain and upgrade sports facilities and stadiums, including those of the Cincinnati Bengals and Cleveland Browns.
If lawmakers had approved his budget plans, Ohio would’ve doubled its sports betting tax for the second time. About six months after the market launched, lawmakers passed a budget bill to raise the tax from 10% to 20%.
Online Casinos Enter Discussion
Ohio lawmakers are again considering online casinos as a way to increase tax revenue in the state.
Rep. Brian Stewart confirmed he plans to introduce an online casino bill earlier this month. He’s not alone. Last week, state Sen. Nathan Manning introduced a bill seeking to legalize online casino in the Senate, which would also legalize online lottery.
His proposal, SB 197, would allow the state’s four land-based casinos and seven racinos to operate one online casino platform each. The bill calls for a 36% to 40% tax rate, depending on whether the licensees operate the online platform directly (have at least 50% ownership) or through a partner (e.g., DraftKings or FanDuel).
If passed, Ohio would collect the highest iGaming tax, surpassing Pennsylvania’s 36%. The proposed initial licensing fee will be $50 million for the first five years, with a $5 million renewal fee afterward.
Most of the land-based casinos and racinos in Ohio have established online brands. They include Caesars Entertainment, MGM Resorts International, Hard Rock International, Penn Entertainment, and Boyd Gaming.
As such, one would assume they would favor legalizing online casinos. However, some, like Jack Entertainment and Miami Valley Gaming and Racing, have previously opposed iGaming.
SB 197 would also permit iLottery. However, tickets for Mega Millions and Powerball would not be available for purchase online initially.
