Senator Niraj Antani is spearheading the campaign to return Ohio’s sports betting tax rate to 10%.
Last year, Governor Mike DeWine proposed raising the sports betting tax to 20%, which the legislature approved and included in the 2024-2025 budget. However, several lawmakers believe the move is premature and would be counterproductive to revenue generation in the sports betting sector.
Antani is taking the bull by the horns and proposing a counter-bill, SB190, to return the tax rate to its original 10%.
“The 20% rate makes us the sixth highest out of the 38 states with sports betting. This puts us at a significant regional and national disadvantage.”
The Senate Finance Committee discussed the bill this week, and the legislature will decide on it in a lame-duck session next month.
Will the Tax Rate Bill Succeed?
When proposing the 20% tax rate, DeWine claimed that the increase would improve Ohio’s tax haul by $100 million and by up to $135 million by the end of 2024. However, several state actors were not as optimistic.
Rep. Bill Seitz stated that Ohio’s Study Commission on the Future of Gaming would find the tax rate too high. His assessment was accurate as the commission addressed the increase. Three Republicans also called the move “premature” in the commission’s report.
Democratic Rep. Bride Rose Sweeney says the legislature would monitor how the tax increase impacts the state’s betting industry.
Antani Hopes to Restore Status Quo
Sen. Antani wants the tax rate back to 10% and is also pushing for online casino legalization in the state. The latter will likely not succeed, but the senator believes it is the start of a process that will metamorphose into serious discussions in the near future. For now, it is more of a conversation opener for the proposed tax rate bill.
“A journey has to start somewhere. We want to kickstart the process. A good group of legislators are thinking thoughtfully about this issue, but many of my colleagues haven’t had the opportunity, and I hope this will start the conversation.”