It’s been a long time coming, but Ohio is finally ready to join the sports betting fray. With just a few weeks left before launch, regulators are finishing up the licensing process, and registered sportsbooks are gearing up for action. But as per the latest statement from the Ohio Casino Control Commission, some will launch on a later date, rather than on January 1.
With its four neighboring states already allowing legal forms of sports betting, Ohio will now become part of a larger regional effort in determining how this new market can be leveraged as many Kentuckians are poised to take advantage of it.
It is estimated that the Ohio sports betting market could generate up to $10 billion in wagers in its first year, with associated tax revenues predicted to be at least $30 million. It makes Ohio an attractive player within the broader US picture and presents intriguing possibilities for those wishing to benefit from its newly permissible practices.
What Makes Ohio a Favorable Location?
Ohio is one of the most desirable markets for sportsbooks and bettors in the United States. As it boasts a large population, eight professional sports teams, plus high-profile universities, Ohio offers operator-friendly rules that attract players on both sides of the equation.
Analysts anticipate Ohio to reach between $8-10 billion in annual sports betting handle in its first year. This would place it second behind New York among all US states as far as generating betting activity. With the big-4 sports betting operators(Fanduel, DraftKings, BetMGM, and Caesars), all present in the Buckeye State, there is no wonder why the expectations are off the charts.
Estimates additionally project that the state’s taxable revenue related to sports betting will range from approximately $30 to $50 million, although some sources suggest this number could be even higher before the end of year two. With these factors combined, Ohio looks primed to become one of the top sports betting markets in the country.
Ohio Sports Betting Tax Rate
Ohio’s 10% tax rate for sports betting puts it in competition with its neighboring states. West Virginia also has a 10% rate and Michigan has 8.4%, both of which are lower than Ohio’s. Meanwhile, Pennsylvania stands out from the rest with a significantly higher 36% rate.
All other states that have legalized sports betting so far have tax rates similar to Ohio at or around 15%. As this emerging market continues to expand throughout the country, the competitive nature of various states’ tax rates could be a deciding factor for residents wanting to place bets online.