Tax revenue from Ohio casinos generated more than $70 million for counties and education in the first quarter of 2022. Overall, Ohio casino Q1 tax revenue surpassed $82 million, a 7% increase over fourth quarter of 2021.
Revenue is split among seven different funds reserved for various statewide programs. Education funding will receive a further boost after sports betting is launched later this year. A launch date is expected to be announced on June 1.
County and student funds receive bulk of tax dollars
Counties and education receive the most money from casino tax revenue. The state taxes casino revenue at 33%. That amount is then split among seven different funds, with each fund receiving a percentage of the tax revenue:
- County fund: 51%
- Student fund: 34%
- Host city fund: 5%
- Casino Control Commission fund: 3%
- Ohio State Racing Commission fund: 3%
- Law enforcement training fund: 2%
- Problem gambling and addictions fund: 2%
Casino and racino revenue in Ohio totaled $244.21 million for 2022 through March. Ohio casino Q1 tax revenue surpassed $82 million. The $82.96 million in tax revenue provided the following amounts to the seven funds:
- County fund: $42.31 million
- Student fund: $28.20 million
- Host city fund: $3.87 million
- Casino Control Commission fund: $2.32 million
- Ohio State Racing Commission fund: $2.32 million
- Law enforcement training fund: $1.55 million
- Problem gambling and addictions fund: $1.55 million
Counties and cities
This is the third time in the past three years the county fund has received at least $40 million. Additionally, the Q1 distribution to the county fund was around $2.8 million higher than Q4 2021.
The Ohio Department of Taxation takes the county fund money and distributes it every quarter to all 88 counties in the state. County populations determine amounts given. The more people in the county, the more money the county receives.
If a county has a city with a population of more than 80,000, however, then the revenue is split 50-50 between the county and city. Cities in Ohio that qualify for that 50% cut are Akron, Canton, Cincinnati, Cleveland, Columbus and Dayton.
The department distributes tax revenue the same way for the school fund. The total number of students in schools determines the amount given. The school fund distribution increased by nearly $3 million, quarter on quarter.
On June 1, the Ohio Casino Control Commission will reveal the launch date for sports betting in the state. The tax rate on sports gambling receipts is 10%, and 98% of that will go toward the state’s school fund.
According to a PlayOhio analysis, the state is expected to generate more than $50 million in tax revenue a year after betting begins. That would put the school fund in line for nearly $5 million in additional revenue a year.