Ohio Governor Mike DeWine Proposes Sports Betting Tax Rise
This one won't be music to our best sports betting sites' ears.
Ohio Governor Mike DeWine has proposed the creation of a new stadium and youth sports education fund, which would see Ohio sports betting tax increase from 20% to 40%.
The Governor estimates that this new tax hike would increase state revenue from $130 million to $180 million annually. DeWine also promises to introduce a new commission that would allocate where the money will be spent. However, DeWine clarified that money would first be spent on renovating the Cincinnati Bengals stadium and the Cleveland Browns stadium project, which would introduce a domed stadium in Brook Park.
When explaining the proposed tax hike, Governor DeWine clarified that he wanted to ensure that Ohio sports betting apps operating in Ohio stopped marketing aggressively to consumers and paid their fair share.
“These sports gaming companies … They’re getting Ohioans to lose massive amounts of money every year. And it seems to me only just and fair that some of the stadiums be paid for by a portion of it,” he said.
Residents continue to take advantage of Ohio sportsbook promos, and the state may soon be taking more of the revenue from the operators offering them.
DeWine’s budget bill remains ambiguous
The Governor announced that he was proposing a $60.9 million state operating budget that would need approval by the end of June if it were to proceed.
However, DeWine did not explicitly say how much state money would be used for the Cleveland Browns stadium project but did say that his budget proposal would be a way in which future funding for public funding and stadium projects would not come out of the state’s general fund.
Instead, the general fund would solely focus on core state priorities, such as K-12 school funding. This funding would provide schools with youth sports education and help families in need afford sports-related expenses.
“This proposal that I have outlined has the added benefit of no longer will we have to, at any time in the future, go to the people of the state of Ohio and say, your tax dollars will go for this stadium or that stadium,” DeWine said.
Michigan gambling tax hike bill expires
As Ohio’s governor proposed raising the sports tax in his state, Michigan lawmakers found that bills SB 1193 and 1194, put forward by Senators Sam Singh and Jeremy Moss, expired at the beginning of January.
The two bills aimed to introduce legislation that would raise the Michigan sports betting tax rate by 8.4% to 8.5% and create a tiered Michigan online casino tax system, increasing each tax bracket by 1%.
Sports Betting Alliance (SBA) members FanDuel, DraftKings, and BetMGM disagreed with the decision and urged users to oppose the new legislation.
