Sports betting tax legislation introduces significant changes for Ohio's gambling market. Sen. Niraj Antani (R-6) proposes reducing the state's sports betting tax rate from 20% to 10% through SB 190, reverting to the original rate established during the January 2023 launch.

Currently, Ohio ranks as the sixth-highest taxed state among 38 states with legal sports betting. The state's neighbors - Kentucky, Michigan, Indiana, and West Virginia - maintain lower rates, potentially creating competitive disadvantages for Ohio's market.

Key Points About the Tax Rate Proposal:

• Current rate: 20% (increased from 10% in July 2023)
• Proposed rate: 10%
• Current tax revenue (Jan-Sept 2024): $129.7 million
• Projected revenue at 10% rate: $64.8 million

Additional Gaming Legislation: Antani also introduced SB 312 to legalize iGaming, which includes:

• License eligibility for casinos and racinos
• 15% tax rate on online slots and table games
• $300,000 initial license fee
• $250,000 annual renewal fee
• $100,000 nonrefundable application fee
• $250,000 annual contribution to problem gambling funds
• Maximum of five affiliate marketing licenses at $25,000 for three years

The iGaming proposal faces uncertainty, with mixed support according to a recent 354-page state gaming study. The Ohio Casino Control Commission would regulate online casino gaming under the proposed legislation.

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