Ohio sports betting revenue: Year 1 vs. Year 2
With Ohio sports betting now having two years in the books, here's a closer look at how it's gone so far and future changes that may occur
Ohio recently joined the majority of other states by legalizing sports betting, which began Jan. 1, 2023 for those 21 and older. Ohio has now had two full years with legal sports betting, and there are plenty of numbers to dive into regarding how much money was wagered and how much the state made in taxable income, as well as changes that were made—and may be made once again — for the tax rate on sports betting.
Ohio sports betting: 2023 vs. 2024
Bettors wagered nearly $9 billion at legal sportsbooks in the Buckeye State in 2024, according to the Ohio Casino Control Commission, up from roughly $7.7 billion in 2023. January 2023 was, naturally, a big month with more than $1 billion wagered as sports betting kicked off in the state. November 2024 was the second time Ohio bettors wagered more than $1 billion in a single month. According to the commission, tax revenue received by the state in 2024 totaled $180.8 million, compared to $133.3 million in 2023, an increase of 35.7%.
While both state tax revenue and total bets placed increased from 2023 to 2024, sportsbooks actually made less money this past year than in 2023. According to available data, sportsbooks brought in roughly $900 million in 2024 compared to $935 million in 2023—a decrease of roughly 4%.
Ohio has in-person sports betting through various casinos and sportsbooks, but it's clear that online wagering is king in the state. Ohio, like most states that have legalized sports gambling, allows for online wagering in addition to in-person betting at casinos and sportsbooks. But according to the commission, it's night and day where Ohioans are placing their bets, as roughly 98% of the state's sports betting tax revenue in both 2023 and 2024 came from online sports wagers through sportsbooks like FanDuel and DraftKings.
Ohio may increase sports betting taxes again
When Ohio legalized sports betting beginning in 2023, the initial tax rate was 10%. That soon changed, however, with Governor Mike DeWine proposing an increase to 20%. That was agreed to at the state legislative level and went into effect in July of 2023 and has remained since.
Thanks to both an increase in the tax rate from 10 to 20% partway through 2023, as well as an increase of roughly $1.3 billion in terms of wagers from bettors, Ohio saw a tax revenue increase from $133.3 million in 2023 to $180.8 million in 2024—over 35.7%. That number could potentially increase in the future if DeWine has any say, as the Ohio governor has proposed doubling the tax rate once again, this time from 20% to 40%.
Currently, 98% of the tax revenue from sports betting in Ohio goes toward education, while the rest is used for gambling resources. If DeWine's proposal is accepted and enacted, some of the tax would go toward improving or building sports facilities both for the state's professional teams as well as for youth sports. DeWine believes the tax increase could generate an additional $130-180 million in tax revenue.
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