An Ohio proposal to increase taxes on sports betting has sparked debate among lawmakers, with supporters citing new funding and critics questioning its impact on bettors and revenue.
State Sen. Bill Blessing, R-Colerain Township, introduced SB 199, which would impose a 2% fee on sports wagers. The state would direct the revenue toward public stadiums and K-12 education. The plan follows earlier efforts tied to funding a new Cleveland Browns stadium.
Blessing said the measure, combined with other tax changes, could generate $1.5 billion annually. The sports betting fee alone could add about $200 million each fiscal year.
“If we really do put school funding to bed for the foreseeable future — it’s a public good,” Blessing said. “And again, people forget that school funding is, in fact, property tax relief.”
Concerns About Revenue and Payouts
The proposal would add to Ohio’s existing 20% tax on sports gaming revenue. Some lawmakers doubt higher taxes will deliver the expected returns.
State Sen. Bill DeMora, D-Columbus, warned that increased taxes could reduce betting activity. “Everybody assumes that when you tax more, you’re going to get more revenue from it,” he said. “But other studies show that the more the tax, the less likely you are to do these forms of gambling.”
He also raised concerns about bettor payouts. “If you have more taxes on it, you’re gonna get less payout,” he said.
Blessing argued that competition would force sportsbooks to absorb part of the cost. “Well, if DraftKings and FanDuel are going against each other, they can’t just pass everything on to the bettor,” he said. “To some degree, they have to eat that through lower profits because DraftKings [can say], ‘Well, we can eat a little bit more of this to outcompete you guys.’”
Select Committee on Gaming Chair Nathan Manning, R-North Ridgeville, indicated the bill may not advance soon. “I don’t think raising taxes necessarily brings in more revenue all the time,” he said. “I think that could do more harm than good.”
Broader Gambling Proposals Under Review
The tax plan comes as lawmakers consider wider changes to gambling laws. Recent House proposals would ban online betting, restrict wager types, and prohibit bets on college athletics.
One measure would remove in-game, parlay, and prop bets. Another would ban online wagering, cap bets at $100, and limit users to eight wagers per day. Additional provisions would prohibit credit card use and restrict advertising during live events.
Manning said the ideas risk unintended consequences. “I understand where they’re coming from. I think it’s a little short-sighted and would do more harm than good.”
Ongoing Legal and Policy Debate
A lawsuit filed in federal court claims Stake.us operates as an unlicensed online casino in Ohio while presenting itself as a sweepstakes platform. The complaint argues its redeemable credits function like real money.
Gov. Mike DeWine has also reconsidered his stance after backing legalization in 2021. He later said he “absolutely” regrets the decision. “Look, we’ve always had gambling, we’re always going to have gambling,” he said. “Ohio shouldn’t have done it.”
As lawmakers debate taxes, restrictions, and enforcement, Ohio’s approach to sports betting remains unsettled.
Source:
“Ohio bill would raise tax on sports betting wagers”, ohiocapitaljournal.com, April 16, 2026
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