A lawmaker in Ohio has introduced a bill that would make the Buckeye State the first in the U.S. to tax legal online sportsbooks on both their handle and gaming revenue.
Key Takeaways
- SB 199 proposes 2% tax on sports betting handle
- Ohio also taxes operators 20% on revenue
- Extra tax would support upgrading sports facilities
SB 199, which Sen. Louis Blessing introduced, proposes adding a further 2% tax on the dollar amount of total wagers, on top of the existing 20% tax on adjusted gaming revenue. The additional tax would apply to online and retail sports betting.
The Bill proposes that the extra funding be diverted towards upgrading and maintaining public sports facilities and building new stadiums.
Potential revenue rise
The legal sports betting sector in Ohio has been operating since January 2023, and in that time, approximately $19 billion has been wagered through licensed sportsbooks.
So far, Ohio has received $359 million in tax revenue from the sportsbook sector, partly due to Gov. Mike DeWine doubling the revenue tax from 10% to 20% in the summer of 2023.
Had the 2% handle tax been in place throughout that time, it would have generated over $380 million in extra tax for the state. In March 2025 alone, sportsbooks in Ohio took $985.8 million in wagers, which generated $13.3 million in tax revenue. With a 2% handle tax, the industry would have paid an extra $19.7 million to state coffers.
Many political figures in Ohio have been pushing for more gambling revenue for some time now, including Gov. DeWine. Back in February, he proposed doubling the betting tax from 20% to 40%, which was eventually rejected by lawmakers and removed from the budget.
Ohio lawmakers introduce iGaming bill
SB 199 could be another option for increasing revenue from this sector, but lawmakers are also considering legalizing online casino gaming.
Last week, Sen. Nathan Manning proposed a bill that would legalize online lotteries, casino gaming, and horse racing wagers. The bill included a provision for a tiered tax system, charging operators either 40% or 36%, depending on how they offer iGaming.
According to Manning, if online casino gaming were legalized in this way, it could generate up to $1 billion in annual state revenue.
Manning’s bill isn’t the only attempt to legalize online casino gaming. The Chair of the House Finance Committee, Rep. Brian Stewart, is also reportedly working on a legalization proposal.
