Gov. DeWine wants to hike Ohio sports betting tax up to 40%

Ohio Sports Betting Tax Rate Double
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Ohio Gov. Mike DeWine has presented a state budget plan that proposes doubling the state’s current sports betting tax rate.

DeWine has filed a budget plan for fiscal years 2026-2027 that considers increasing the state’s tax rate on sports betting from 20% to 40%. The governor has proposed a tax hike to increase funding for youth sports education and to support professional sports facilities.

This is not the first time DeWine has suggested upping sports betting taxes. In 2023, his budget bill doubled the tax rate from 10% to 20% just six months after sports betting launched in the state.

According to a report from the Columbus Dispatch, DeWine projects the tax increase to generate between $130 and $180 million in additional revenue annually for Ohio.

The additional revenue would be distributed by DeWine and the state’s legislature.

“It seems to be only just and fair that some stadiums be paid for by them [sports betting companies] and it seems also fair that our young people, who you know they are targeting, will get some benefit by being able to play sports,” DeWine told the Columbus Dispatch.

The revenue could potentially be allocated toward renovations at Paycor Stadium, the Cincinnati Bengals home field since 2000. Last May, the team announced plans to invest up to $200 million to make upgrades at Paycor Stadium, including renovated suites.

The Cleveland Browns are also making efforts to bring a domed stadium to Brook Park. The stadium could fetch a completion price of approximately $2.4 billion, per the AP.

DeWine’s two-year budget plan includes a $60.9 billion operating budget. The plan must be approved by June 30 with the Ohio House and Senate set to release their budget plans.

Ohio adds to potential tax changes

Maryland Gov. Wes Moore has published his Budget Highlights for FY2026, which also proposes doubling the state’s sports betting tax rate as it faces a $3 billion budget gap.

In Moore’s FY2026 budget, the sports betting tax rate would increase from 15% to 30%. His proposal also considers raising the state’s table game tax rate from 20% to 35%.

In FY2026, the increase is projected to generate $95.4 million in revenue.

Illinois raises sports betting tax rate

Ohio and Maryland are considering tax rate changes after Illinois raised its rate in 2024.

Last year, Illinois Gov. J.B. Pritzker signed the state’s budget plan implementing a sports betting tax system that is based on a sliding scale. His plan sees operators taxed based on their adjusted gross revenue with operators generating over $200 million in revenue taxed at a 40% rate. Operators that don’t meet that revenue threshold are taxed at a 20% rate.

New York holds the highest sports betting tax rate for online wagering at 51%.