Ohio Lawmakers Consider Unique 2% Sports Betting Handle Tax

Ohio is considering expanding its gambling landscape with Senate Bill 197, which aims to legalize online casino gaming and lotteries, potentially generating hundreds of millions in new state revenue. Concurrently, Senate Bill 199, introduced by Senator Louis Blessing, proposes a novel 2% tax on the total amount wagered (handle) in sports betting, in addition to the existing 20% tax on operator revenue, making Ohio the first state to tax both handles and revenue. This tax is intended to fund public sports facilities and youth athletic programs and could have generated substantially more revenue if applied since the launch of legal sports betting in 2023. Governor Mike DeWine previously sought to increase sports betting taxes to 40%, but this was rejected, leading to more moderate proposals such as SB 199. Meanwhile, in Alaska, lawmakers are advancing efforts to legalize online sports betting through HB 145, addressing the demand from residents currently using illegal markets and aiming to generate new tax revenue without tying operations to physical casinos. These efforts reflect a broader trend of states exploring new gambling regulations and tax structures to boost revenue and regulate existing markets.