Ohio’s Senate Bill 199 Proposes 2% Tax Hike on Sports Betting Handle

A New Tax Play

Ohio’s sports betting scene faces a fresh tax hike with Senate Bill 199, which slaps a 2% tax on gross wagers, as proposed by Sen. Louis Blessing III. “It’s about funding public sports facilities,” Blessing said, aiming to support stadiums and school athletics.

Unlike Governor Mike DeWine’s rejected 40% revenue tax, this bill targets the total handle, every bet placed, sparking controversies in Ohio’s gaming market. With the state’s 20% revenue tax already in place,

SB 199 could reshape operator strategies; however, after a more reasonable tax hike proposal failed, the chances of SB 199 reaching a happy ending are pretty low.

SB 199, introduced in 2025, shifts Ohio’s betting tax model by adding a 2% levy on gross wagers, defined as all cash and promotional bets minus voided wagers and federal excise taxes.

This gross wager approach, used only in Tennessee, would layer on top of the existing tax. Funds would flow into a sports gaming privilege fee fund, with 98% earmarked for a sports venue redevelopment fund and 2% for a K-12 interscholastic athletics fund.

A Response to DeWine’s Push

The bill comes after lawmakers twice rebuffed DeWine’s tax hikes. In July 2023, just six months after Ohio’s betting launch, DeWine doubled the revenue tax from 10% to 20%, matching Massachusetts but hitting smaller operators hard.

His 2025 bid to raise it to 40%, potentially netting $180 million yearly, was shot down by the House, which opted to fund the Cleveland Browns’ $600 million stadium from general funds.