A lawmaker in Ohio is looking to increase the tax burden on sports betting companies, eyeing bigger funding packages for public stadiums and K-12 education.
Sen. Bill Blessing has introduced Senate Bill 199, which suggests a 2% fee on sports wagers, for further consideration. It mirrors 2025 legislation co-sponsored by Bill Blessing and Mike DeWine, which originally explored alternative ways to fund a Cleveland Browns stadium.
Blessing highlights cost saving potential
Sen. Blessing has said the proposal could result in significant cost savings by generating new, dedicated revenue rather than drawing from the state’s general fund. The plan relies on a mix of targeted taxes, including the aforementioned 2% fee on sports wagers, alongside increases to tobacco, marijuana and kratom taxes.
Blessing said the approach would shift the financial burden away from broad-based taxpayers by relying on so-called “vice taxes” tied to specific activities. He pointed to proposals from DeWine, including higher tobacco taxes, as part of a broader effort to create alternative funding streams for state priorities.
He said “If we really do put school funding to bed for the foreseeable future, it’s a public good. And again, people forget that school funding is, in fact, property tax relief.”
Combined, the measures could generate roughly $1.5 billion annually, according to Blessing. He said that level of revenue could help fund projects such as public stadiums and K-12 education while reducing the need for new general taxes or state borrowing.
Previous efforts to halve tax rates in Ohio remains stagnant
In November last year, Niraj Antani, a Dayton-area Republican who authored Ohio’s 2022 sports betting legalization law, proposed to roll back the state’s sports gaming tax rate from 20% to its original 10%.
Antani submitted written testimony to the Senate Finance Committee in support of Senate Bill 190, arguing the state erred when it doubled the tax rate in 2023. “The 20% rate makes us the 6th highest out of the 38 states with sports betting,” he wrote.
“The lowest in the country are Iowa and Nevada, three times lower than our rate,” Antani added. “Our border states, Kentucky, Michigan, Indiana and West Virginia, now all have significantly lower tax rates. This puts us at a significant regional and national disadvantage.”
Antani has previously said the higher rate hurts bettors and smaller operators, arguing a return to 10% would be more competitive. “10% was a reasonable tax rate that put us in the middle of the pack,” he wrote. “While I’d love for us to be at the 6.75% rate to tie lowest in the country, going back to 10% is reasonable.”
However, the bill remains stagnant in the Senate. At the time of writing, it is pending and has not advanced to a floor vote, although it is still in the early stages of the legislative process. There is no indication it has been reported out of committee or scheduled for further action.
Save Ohio Sports Act introduced
Meanwhile, three Ohio lawmakers, Gary Click, Riordan McClain and Johnathan Newman, introduced legislation this week to sharply restrict legal sports betting. The proposal, dubbed the “Save Ohio Sports Act,” would be split into two bills targeting the state’s 2023 legalization law.
The first measure, described as a consumer protection package, would ban mobile sports betting, limit wagers to $100 at casinos and prohibit the use of credit cards. It would also outlaw promotional “bonus bets” and restrict when gambling advertisements can air.
The second bill, framed as a sports integrity package, would prohibit prop bets, parlays and in-game wagers, along with all betting on college sports. Lawmakers said the changes are intended to address concerns about the integrity of both professional and collegiate athletics.
Supporters pointed to recent federal indictments involving former Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz, who were accused of accepting bribes to influence game outcomes. They also argued gambling can lead to financial and mental health problems, particularly among young men.
However, there was one vocal opponent in Sen. Bill DeMora. He said: “I’m morally opposed to what the bill introduced to the House is because that’s ludicrous. No one’s going to bet if you don’t have prop bets and parlay betting. And I’m not sure those two sponsors of that bill actually know what those things are, I know our governor doesn’t know what they are, actually.”
The proposals could significantly reduce state revenue from sports betting, which generated about $1 billion in taxable revenue in 2025, most of it from mobile platforms.
The competing proposals highlight a widening divide among Ohio lawmakers over the future of sports betting, with some seeking to expand its revenue potential while others push to limit its reach. As Bill Blessing’s tax plan and other measures await further legislative action, the debate is likely to continue over how best to balance funding priorities, market competitiveness and consumer protections in one of the nation’s newer betting markets.
