Ohio may have highest gaming tax rates for certain operators
What began as quiet discussion around online casino gaming in Ohio has quickly become formal legislative action. State Sen. Nathan Manning filed a bill that would legalise online casino gaming, online lottery sales, and digital horse race wagering — while proposing the highest tax rates in the nation for certain operators.
Senate Bill 197 proposes high licensing fees and tax rates depending on how operators structure their online gaming platforms. During a brief first reading in the Senate Select Committee on Gaming, Manning explained what encompasses the bill. Existing brick-and-mortar casinos that operate online casino platforms in which they hold at least a 50 percent ownership stake— such as Caesars or PENN Entertainment— would pay a $50 million license fee for five years, with a $5 million renewal fee. Their revenue would be taxed at 36 percent.
Bill to tax third-party operators more
In contrast, operators relying on untethered or third-party operators— such as BetMGM or DraftKings — would face significantly steeper costs including paying twice as much for a licence. According to the bill, these operators would have to pay $100 million license fee, a $10 million renewal charge, and face a 40 percent tax rate. That figure would give Ohio the highest open-market tax rate for online casino gaming in the country, surpassing Pennsylvania’s current 36 percent.
also includes a range of regulatory provisions, including halving the retail sports betting tax rate from 20 percent to 10 percent, banning the use of the word “free” in gaming advertisements, and prohibiting marketing on college campuses. Additionally, player protection mandates are also part of the provisions. Manning has projected that legal online casinos could generate between $300 million and $1 billion annually for the state. The bill proposes that 99 percent of tax revenues generated would go directly into Ohio’s general fund, with the remaining 1 percent earmarked for problem gambling support.
House Bill 96 and sports gaming tax
Ohio recently introduced House Bill 96, aimed at expanding gambling in Ohio, in the Senate. The bill has already passed in the House and is now in the initial stages of Senate review. was introduced by Rep. Brian Stewart (R-Ashville), who serves as chair of the House Finance Committee. His bill is intended to create a strong foundation for online poker and casino games in Ohio. The legislation attempts to legalise online casino-style games and poker, with regulation falling to state agencies. It is meant to increase revenue without raising taxes. Having already passed the House; the bill is now before the Ohio Senate.
These bills are significant because Ohio has long maintained strict control over gambling activities. The introduction of these bills may signal a shift in lawmaker’s attitude, with action now underway in both legislative chambers and key leaders signaling support, Ohio may soon join a growing number of states embracing online casino gaming as a new revenue stream.
In February, Governor Mike DeWine proposed doubling Ohio’s sports gaming tax rate from 20 percent to 40 percent, following a similar increase from 10 percent to 20 percent two years ago. If approved, Ohio would rise in national rankings for sports betting taxation, significantly impacting operators, bettors, and the state’s economy.
