Ohio State Senator Niraj Antani is advocating for a reduction in the sports betting tax rate, proposing to lower it from 20% to 10% through Senate Bill 190, which is currently under review by the Senate Finance Committee. Antani, who was instrumental in the legalization of sports betting in Ohio in 2022, argues that the current tax rate, implemented as part of the 2024-2025 state budget, puts Ohio at a competitive disadvantage compared to neighboring states. This issue has particular relevance for Scioto Valley, since the bordering states of Kentucky and West Virginia both have significantly lower tax rates on sports betting.
The current 20% tax rate ranks Ohio as the sixth highest among the 38 states where sports betting is legal. Kentucky and West Virginia have more favorable rates of 9.75% and 10%, respectively. Antani has highlighted that these lower tax rates are drawing sports betting operators and customers across state lines.
Many bettors are also migrating to various no verification casinos to enjoy table games and slots, as they are far less cumbersome than traditional KYC casinos. Gamblers prefer these casinos as they can enjoy the thrill of gambling without needing to go through identity checks allowing players to immediately participate in gambling activities without dealing with the hassle of submitting personal documents. What’s more, casino games are unavailable locally in Ohio, with only sports betting currently available via local sites. This migration and limitation on online casinos not only affects local players but also limits opportunities for local businesses in the gambling sector to flourish.
With the taxes as high as they are many Scioto Valley betters are choosing to cross the border into Kentucky or West Virginia to place wagers at a lower cost due to more favorable tax rates, depriving Ohio of valuable tax revenue.
With Scioto Valley’s mix of small businesses and local entrepreneurs, it has the potential to be a thriving hub for sports betting, but the current tax rate is a barrier. The higher costs associated with Ohio’s 20% tax discourage smaller operators from entering the market, effectively limiting competition and stifling growth.
Local entrepreneurs who might otherwise invest in the industry face higher operational costs, making it difficult to establish and sustain businesses. A lower tax rate could help small Scotio Valley operators compete with larger, more established companies, encouraging new businesses and driving economic growth.
A reduction to a 10% tax rate would not only keep Scotion Valley bettors within Ohio but also make sports betting more accessible and appealing to local residents, creating a more vibrant and engaged community around the industry.
Governor Mike DeWine initially proposed the 20% tax rate to increase state income, with the majority—98%—of the funds earmarked for education. While these allocations benefit the residents of Ohio residents, Antani contends that the higher tax rate ultimately undermines growth and that a lower tax rate would continue to fund these important programs while fostering a more sustainable market that better supports local economies.
Senate Bill 190 proposes amending Section 5753.021 of the Ohio Revised Code to reduce the tax rate to 10%, effective the first day of the month after enactment. For Scioto Valley, this reduction could foster new business opportunities and attract local investments. By easing financial pressures on operators and bettors, Scioto Valley could become a stronger player in Ohio’s sports betting industry, driving economic growth, creating jobs, and solidifying its role in this expanding market.
