A potential doubling of the tax rate on sports betting is among the issues Ohio lawmakers are working to hash out as they aim to approve a new budget by the end of next week.
Whether to increase the current tax rate from 10% to 20% is among hundreds of areas of disagreement between the state House and Senate in budget bills that passed each chamber this month. Republican Gov. Mike DeWine is pushing for the tax hike after sportsbooks in the state performed better than expected in their first weeks of operation this year.
While Republicans control both legislative chambers, they have produced budgets that diverge on hundreds of issues, including the gambling levy. According to an analysis from the Ohio legislative service commission, adopting the higher rate would lead to the state collecting an additional $100 million to $135 million per year from taxes on sports betting.
A legislative conference committee is negotiating with the goal of finding a compromise before the current fiscal year ends on June 30. Still, it remains to be seen whether they can meet that deadline. Failure to act by next Friday would mean tax changes won’t take effect at the start of the new fiscal year.
Doubling the tax on sports betting would put Ohio in line with states such as Pennsylvania and Illinois, which also apply a 20% rate. But the proposal faces resistance from some legislators who say they set the levy at 10% when they legalized sports betting in 2021 to encourage as many companies as possible to enter the market.
Whether to increase the current tax rate from 10% to 20% is among hundreds of areas of disagreement between the state House and Senate in budget bills that passed each chamber this month. Republican Gov. Mike DeWine is pushing for the tax hike after sportsbooks in the state performed better than expected in their first weeks of operation this year.
While Republicans control both legislative chambers, they have produced budgets that diverge on hundreds of issues, including the gambling levy. According to an analysis from the Ohio legislative service commission, adopting the higher rate would lead to the state collecting an additional $100 million to $135 million per year from taxes on sports betting.
A legislative conference committee is negotiating with the goal of finding a compromise before the current fiscal year ends on June 30. Still, it remains to be seen whether they can meet that deadline. Failure to act by next Friday would mean tax changes won’t take effect at the start of the new fiscal year.
Doubling the tax on sports betting would put Ohio in line with states such as Pennsylvania and Illinois, which also apply a 20% rate. But the proposal faces resistance from some legislators who say they set the levy at 10% when they legalized sports betting in 2021 to encourage as many companies as possible to enter the market.
