Ohio Becomes Only New Market to Top $100 Million in 2023 Sports Betting Tax Revenue

Written By Dan Holmes on May 20, 2024
2023 Ohio sports betting tax revenue

A new report released by online lending marketplace LendingTree has solidified Ohio as the state with the fifth-highest sports betting tax revenue for 2023. The ranking is especially significant, given that the Buckeye State launched legal sports betting on January 1, 2023.

Ohio ranks 5th in 2023 sports betting tax revenue

Ohio sports betting tax revenue ranked fifth in the nation in 2023, according to a report from LendingTree published in early May. The state gathered $136.3 million in tax revenue during its first full year of legal sports betting.

The launch came just in time for the NFL Playoffs and the Super Bowl, catapulting Ohio sports betting to immediate success. The roughly $136 million in sports betting tax revenue rates behind only four states. The top 10 states to accumulate the most tax revenue in 2023 are:

  1. New York: $875.996 million
  2. Pennsylvania: $176.655 million
  3. Indiana: $175.387 million
  4. Illinois: $161.437 million
  5. Ohio: $136.296 million
  6. New Jersey: $111.092 million
  7. Massachusetts: $99.470 million
  8. Tennessee: $83.557 million
  9. Virginia: $74.420 million
  10. Maryland: $64.483 million

Neighboring states Pennsylvania and Indiana both logged just above $175 million in tax revenue, according to the report.

Ohio becomes only new market to top $100 million in 2023 tax revenue

Across the U.S., tax collection from sports betting activity at the state level rose by 34.7% overall in 2023. Such a rise was fueled by several new markets, like Ohio’s. Ohio celebrated a stellar first year of sports betting, becoming the only new market to top $100 million in tax revenue in 2023. Massachusetts, though, wasn’t far behind, reporting $99.4 million.

Established sports betting states also made notable contributions to the national total. The LendingTree report noted a 71.5% tax revenue increase for Nevada — the largest margin for a state that had sports betting in 2022. Virginia saw a 40.2% increase in tax revenue from sports betting. 

Ohio’s 20% tax rate helps fuel sports betting tax revenue

Overall gaming revenue played a significant part in each state’s increased tax take. Neighboring Michigan and Pennsylvania, which sandwich Ohio, reported greater or similar overall gaming revenue in 2023.

Pennsylvania ranked second in the U.S., with $5.9 billion in gaming revenue. Meanwhile, Michigan came in fifth at $3.6 billion — approximately $300 million ahead of Ohio.

Ohio’s $3.3 billion in overall gaming revenue ranked sixth in 2023 — a figure that incorporates revenue from sports betting, casinos, the Ohio lottery, bingo, etc.

However, Ohio’s higher tax rate on sports betting operators resulted in far more tax revenue than its northern neighbors. Ohio taxes at 20%, while Michigan taxes at a low 12% and Pennsylvania at a high 36%.

As a result, Ohio’s 20% tax rate and sixth-best gaming revenue led the state to a more-than-successful first year of legal sports betting.

Photo by Dreamstime / PlayOhio
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Dan Holmes

Dan Holmes is a contributor for PlayOhio with plenty of experience under his belt. Dan has written three books about sports and previously worked for the National Baseball Hall of Fame and Major League Baseball. He also has extensive experience covering the launch of sports betting in other states, including Ohio and Maryland, and the sports betting props — Prop 26 and Prop 27 — in California. Currently, Dan is residing in Michigan with his family.

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