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Ohio Governor Mike DeWine’s plans to double the state’s sports betting tax have encountered significant resistance as lawmakers express concerns about the potential impact on the industry.
DeWine faces opposition from members of his own party, with House Finance Committee Chair Brian Stewart confirming that most Republicans in the House are not in favor of the proposed tax hike.
The governor announced the plans in early February during the 2026-27 budget presentation. Sports betting operators in Ohio currently pay a 20% tax rate, but DeWine hopes to raise the figure to 40% with the additional revenue sidelined for sports project funds.
“These sports gaming [groups] are extremely aggressive…. They’re in your face all the time,” DeWine told the Ohio Capital Journal at the time. “They’re getting Ohioans to lose massive amounts of money every year and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.”
His budget plans also propose doubling the tax on cannabis from 10% to 20% and a $1.50 increase on cigarette taxes to help finance a $1,000 child tax credit. However, the proposals have received criticism from Stewart and other Republican leaders.
Proposal Was Always Unlikely to Go Through
Gov. DeWine proposals encountered hurdles not only from his political opposition but also from fellow Republicans. While many agree that adjustments to the budget are necessary, they are hesitant to pursue tax increases as the solution.
Stewart has expressed his disapproval of the tax hikes, indicating that a significant number of lawmakers share his views.
“I don’t support these tax increases, and in my discussions with members, it’s clear that the majority of Republicans do not support them either. But we will not determine anything concrete relating to the substitute bill until we receive and deliberate on members’ amendments,” he said.
This resistance is also echoed by Senate President Rob McColley, who has raised concerns about tax increases amid discussions on reforming Ohio’s income tax structure.
Funding Sports Franchises Still a Priority
DeWine’s call for higher taxes arrives at a crucial moment, with major sports franchises actively seeking additional financial backing. The Cleveland Browns, for example, are looking to secure $600 million in state-backed bonds to build a new domed stadium in Brook Park.
Recently, the Haslam Sports Group, the franchise’s ownernership, offered an upfront payment of $38 million in exchange for these bonds. While team officials maintain that the new stadium will create significant economic opportunities, some lawmakers express doubt about its potential effects on downtown Cleveland. Critics fear that the project may merely shift economic activity away from the city center rather than generate new growth.
Despite these concerns, House Speaker Matt Huffman has noted a generally positive reception toward the Browns’ proposal among Republican lawmakers, likening it to other state-supported economic initiatives in the past. The Haslam Sports Group believes that the domed stadium will attract new events and revenue streams that the region currently lacks.
The governor’s latest effort to double the sports betting tax follows a previous proposal in the 2023 budget that increased the rate from 10% to 20% shortly after Ohio launched its regulated sports betting market. However, the current push to raise the rate to 40% faces considerable pushback.
As the deadline for budget amendments approaches, lawmakers are gearing up for crucial discussions that will shape the future of sports funding in Ohio.
Source: Next.io
