How do you become a billionaire from gambling? Start as a millionaire! 🤣 All bad jokes aside, Ohio just doubled the sports betting tax from 10% to 20% and the decision's getting mixed reviews. 🏈
Governor DeWine says the new tax increase serves as a warning for big companies who don't want to play nice. 😤 However, on the flip side, the changes could negatively impact smaller companies. 📉
Here’s Five Fast Facts on Ohio’s sports betting tax hike:
- 💰 Just Budget Things - The sports betting tax increase was one of many changes included in Ohio's 1,000-plus page state budget. Governor DeWine signed the budget into law last week and the new tax rate officially took effect July 1st (retroactively).
- 🏒 Millions on Millions - Today, Ohio has 18 betting apps and 14 physical betting lounges. They've brought in $507 million of revenue in six months and roughly $51 million in tax revenue. Under the new rule, the number would jump to over $100 million.
- ⚾ Ramblin' and Gamblin' - Even though 20% seems like a lot, it's not as high as some other states. New York's current sports betting tax is 51% and Pennsylvania's is 36%. West Virginia, Indiana, Michigan, and Kentucky all have rates of 10% or under.
- 🚨 No Means No - Governor DeWine proposed the tax change in February. He believed big sports betting companies were "pushing boundaries'' with their aggressive ad campaigns. Barstool Sportsbook, DraftKings, BetMGM and Caesars Sportsbook all broke Ohio's advertising rules and were slapped with fines earlier this year.
- ⛹️ Look Out for the Little Guy - Higher sports betting taxes could give smaller betting companies a hard time. These smaller operations already struggle to compete with the big guys. More taxes means even less money to spend on marketing, apps, and promotions.
🔥Bottom line: The state's new budget also created a special committee to monitor Ohio's sports betting industry. Officials say they'd work to lower the rate again if it's hurting small businesses. They also say the increase wasn't motivated by an increase in tax revenue. Not even a teeny tiny bit?!
(PS: head here to get all the details about how Ohio's prepping for the upcoming solar eclipse!)
Are you a regular sports gambler? What do you think of these changes?
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