Recently, Governor Mike DeWine turned to Ohio lawmakers and asked for a significant 100% raise on the tax taken from sports gambling companies. If accepted, this would see the gambling tax increase from 20% to 40%. This potentially controversial decision is made even more noticeable by the fact that DeWine doubled the tax only two years ago.
However, there is a silver lining to this. Should it be accepted by the lawmakers, DeWine wishes to use the additional profit to directly fund any necessary future work that Ohio’s professional major and minor league stadiums might need and to aid young athletic programs.
Such a decision is also likely to have ripple effects across all kinds of gambling in the US. If the lawmakers accept this, it may set a precedent for other legislators across various states to begin raising gambling taxes and use these funds to improve areas within the public sector.
Similarly to sports betting institutions, casinos in Ohia generate a significant amount of money every year. This is due, mainly, to the influx of online casinos, bringing a huge amount of accessible options to a wide range of different players, as seen in this source from Poker Scout.
Should casinos meet the same fate that appears on the horizon for sports betting companies, these institutions would likely see a significant tax increase. This money could then go into funding community projects such as improving public transport, building houses, or fixing roads. Not only would this improve the general quality of life for many Ohia residents, but it would also create new jobs and boost the state’s economy.
However, not everyone is in favor of this idea. Ohio House Finance Chair Representative, Brian Stewart and Rep. Brise Rose Sweeny have both voiced their concerns regarding raising taxes in the state. Both individuals are aware of the recent tax hike on the gambling sector, warning that not enough time has passed for us to understand the effect these hikes will have on the industry.
Additionally, DeWine is asking lawmakers to increase the tax on cigarettes. He plans to use the additional profit this will generate to fund other projects, such as a child tax credit. However, these kinds of taxes, often referred to as “sin taxes” have been unpopular in the past, with many believing that they are unfair to vulnerable Ohioans who are on low incomes.
The proposal is very much on the way, with lawmakers on the House Finance Committee having heard testimonies regarding the budget proposal during the start of the month.
As with many things, there seem to be several positives and negatives surrounding DeWine’s proposal. Although funding community projects is always a good thing, it is uncertain whether taxing the already heavily taxed gambling sector is the way to do it.