Ohio bill seeks to impose tax on sports betting handle
The bill seeks to introduce a new 2 per cent tax on bets.
US.- State senator Louis Blessing has introduced SB 199, a bill proposing to tax operators’ sports betting handles at 2 per cent. The new tax would be in addition to the current 20 per cent levied on adjusted gaming revenue (AGR).
If the bill is approved, Ohio would become the only state in the US to tax both handle and AGR from sports betting and the second state to tax gaming handle. According to the draft bill, the new tax would be earmarked to support publicly owned professional sports facilities and interscholastic athletics.
The proposal comes after a failed attempt to double the state’s tax rate for sports betting from 20 per cent to 40 per cent
Meanwhile, Rep. Brian Stewart has confirmed that he is working on a proposal to legalise online casinos in the state. Stewart is the chair of the House Finance Committee and the sponsor of House Bill 96, the House version of the two-year state budget. Stewart said the bill’s goal is to generate additional revenue for the state.
A report released last year by the Study Commission on the Future of Gaming in Ohio recommended legalising online gaming. Three Republican lawmakers, Reps. Jay Edwards, Jeff LaRe and Cindy Abrams, said in the report: “While the state should proceed with caution and care with any expansion of this magnitude, with the right regulatory framework, these types of gaming can thrive with nominal impact to our current system.”
“These tax revenue benefits to the state and funding that could be provided to our K-12 education system cannot be overlooked,” the lawmakers wrote. However, there have been concerns about how internet gambling could affect traffic at Ohio’s four land-based casinos and seven racinos.
