Sports Gambling Weekly Recap: Sufficiently Deceitful?
Sports Betting Tax Hike Proposal Rejected in Ohio Budget
In a recent development, the proposed tax hike on sports wagering in Ohio's 2026-27 budget has been rejected. Despite Governor Mike DeWine's push to increase the sports betting tax rate from 20% to 40%, the proposal did not make it into the finalized budget.
The Ohio legislative conference committee agreed on a new state budget, which explicitly states that there are no tax increases on sports betting or other items like marijuana or tobacco products in the current budget. However, the issue remains active as some state legislators continue to advocate for introducing a handle tax or other forms of wagering tax hikes.
Ohio legalized sports betting starting January 1, 2023, initially with a 10% tax rate, which was doubled to 20% in mid-2023 under DeWine’s leadership. The sportsbooks paid $180 million in taxes in 2024 at the 20% rate.
Meanwhile, in other sports betting news, DraftKings made a $195 million bid for PointsBet's American assets, but the deal was not finalized. Instead, PointsBet's board approved the sale of its U.S. holdings to Fanatics for $150 million. This move could potentially impact the sports betting landscape, as Fanatics is known for its merchandise business and has plans to go live during the football season.
However, a new rule in Ohio prevents Fanatics from wedding sports betting product to its merchandise. This rule could limit Fanatics' ability to capitalize on the sports betting market in the state.
In other states, the sports betting industry is also evolving. For instance, the Federal Court overturned a ruling blocking sports betting in Florida. Massachusetts now requires '21+' on sportsbook logos visible from sports venues.
On a positive note, EPIC Risk Management announced a three-year deal to provide gambling awareness educational programs to all MLS players. The partnership is funded by Entain Foundation U.S. and will involve gambling harm education and awareness workshops delivered to the entire membership of the Major League Soccer Players Association.
As the sports betting industry continues to grow and evolve, it will be interesting to see how these developments unfold in the coming months. Stay tuned for more updates on this dynamic sector.
Sources:
- Ohio sports betting tax rate to double
- Ohio sports betting tax hike proposal rejected
- Fanatics buys PointsBet's U.S. holdings for $150 million
- Ohio budget: No tax increases on sports betting, marijuana, or tobacco
- The proposed tax hike on sports wagering in Ohio's budget, intending to raise the sports betting tax rate from 20% to 40%, has been rejected.
- The sports betting industry in Ohio continues to operate with a 20% tax rate, as the newly approved budget does not contain any tax increases for sports betting.
- Plans for a handle tax or other wagering tax hikes remain active among certain state legislators, despite the rejection of the recent proposal.
- The Ohio sports betting market generated $180 million in taxes in 2024 at the 20% tax rate, following the initial 10% tax rate upon legalization in 2023.
- In a related news, DraftKings' bid for PointsBet's American assets fell through, with PointsBet's U.S. holdings being sold to Fanatics for $150 million instead.
- Technology continues to play a significant role in the sports betting landscape, with Fanatics planning to enter the market during the football season, despite a new rule preventing it from merging sports betting products with its merchandise business in Ohio.
