Published on: April 17, 2026, 04:38h.
Updated on: April 17, 2026, 04:38h.
- A legislator in Ohio is proposing a tax increase on sportsbooks
- The suggested 2% rise in sports betting tax aims to benefit sports venues and K-12 athletic programs
Proposed legislation in Ohio aims to elevate the state’s tax on sports betting revenues by an additional 2%.
Ohio State Senator Louis Blessing, III (R-Colerain Township) has introduced Senate Bill 199, aimed at raising the state’s tax on gross sportsbook revenue from 20% to 22%.
Sen. Blessing refers to the 2% tax increase as a “privilege fee.” The revenue generated from this tax will support interscholastic athletics and various extracurricular activities for K-12 students. The primary allocation of these additional funds will go to the Sports Venue Redevelopment Fund, purposed for the renovation or construction of sports facilities in Ohio.
Blessing estimates that the proposed tax rise could potentially generate an extra $200 million in annual state revenue.
“If we can establish stable school funding for the near future, it will benefit the public,” Blessing stated in a discussion with the Ohio Capital Journal. “Many overlook that funding schools also contributes to alleviating property tax burdens.”
Last year, Ohio sportsbooks reported outstanding revenues, achieving a gross win exceeding $1 billion on over $10 billion in placed bets.
Analyzing Ohio Sports Betting
Sen. Blessing’s proposal arrives at a turbulent time for the sporting wagering industry in Ohio, as Governor Mike DeWine (R) has expressed strong regret over approving sports betting legislation in 2021, calling it possibly his biggest “error” during his tenure.
Recently, a coalition of conservative lawmakers introduced the “Save Ohio Sports Act,” aiming to implement drastic changes to the state’s sports betting framework.
Reps. Riordan McClain (R-Upper Sandusky), Gary Click (R-Vickery), Jonathan Newman (R-Troy), and Kevin Ritter (R-Marietta) have suggested restricting sports betting to the state’s four casinos only. Online sports betting would be prohibited, bettors would be limited to eight bets per day, and wagering would be capped at $100.
Sen. Blessing seeks to preserve the existing sports betting market structure while aiming for a larger share of the generated revenues. However, State Sen. Bill DeMora (D-Columbus) has voiced opposition to Blessing’s proposal, worried that sportsbooks might shift the tax burden onto consumers through altered odds and reduced promotions.
“An increase in taxes will likely lead to lower payouts,” DeMora asserted. “It’s a common misconception that higher taxation directly correlates to higher revenue.”
In response, Blessing argued that the competitive nature of the sportsbook market will force companies to maintain attractive odds to keep their clientele, asserting that key players like DraftKings and FanDuel would mainly absorb the 2% tax increase.
Ohio Sportsbook Landscape
In addition to the four casinos, Ohio features retail sportsbooks at seven racetrack casinos, alongside numerous sportsbook kiosks located within bars and restaurants, enabling bettors to place their wagers through the Ohio Lottery’s UBetOhio Sportsbook.