Sports betting is thriving in the Buckeye State, and the early revenue figures are impressive. Ohio launched online sports betting, retail sportsbooks and betting kiosks on Jan. 1, 2023. Right out of the gate, Ohio broke the U.S. all-time record for monthly sports betting volume in its first month, taking over $1.1 billion in bets in January.
As is the case for many states, the potential to increase gambling revenue — and thereby taxes — is the primary goal of the new market. Ohio initially implemented a 10% sports betting tax rate but doubled it to 20% at the start of July.
So far, Ohio sports betting has brought in:
Total Bets Placed: $5,218,901,399
Taxable Revenue: $699,191,448
Taxes for Ohio: $85,888,627
Below, you’ll find the latest revenue report highlights, Ohio sports betting figures to date, and projections for the rest of 2023.
September 2023 Ohio sports betting revenue highlights
Ohio sports betting handle came in at $690.4 million in September. The numbers represent more than a 100% increase from August. The rapid increase is mostly thanks to the first month of NFL betting available in the Buckeye State.
September was the third-largest handle in the short history of Ohio sports betting. Only the initial launch in January and March’s numbers were larger. The increase also correlates with continued promo spending increases by sportsbook operators. In August, operators snapped the downward trend for promotional spending with $15.2 million. But those figures were blown out of the water by September’s $52.5 million. Like handle, this was the third-largest amount of the first nine months. The betting handle should continue to increase in October as NHL and NBA games are added to the betting slate. But it will be interesting to see if operators continue to spend on new customer acquisition. Typically, operators look to onboard as many new users as possible for the start of NFL season.
Ohio’s year-to-date tally is now over $5.2 billion in betting volume — an impressive feat for its first nine months. A top-3 U.S. rank is still in play for 2023, though Ohio will likely land fourth or fifth in overall handle.
Here are the most important things to know from the September Ohio sports betting revenue report:
- Fanatics Sportsbook is for real. The company launched its fully functional product in August after six months of beta testing. In about half of the month, Fanatics handled $6.8 million in wagers. But in its first full month in Ohio, Fanatics accepted $23.6 million worth of sports bets and generated $3.9 million in revenue. They were the sixth-largest operator in terms of handle, and fifth-largest in revenue. Caesars Sportsbook handled more bets, but won less from its customers. DraftKings, FanDuel, BetMGM and Bet365 were ahead of Fanatics in both handle and revenue.
- DraftKings established dominance in Ohio. The Boston-based DraftKings flipped FanDuel for the largest monthly handle in July. And since then, DraftKings has only extended the distance between them and rival FanDuel. In September, DraftKings handled $261.3 million, while FanDuel accepted $207.9 million. This is the secon-largest gap between the two giants. The first came in January when FanDuel handled $494.2 million compared to DraftKings’ $343.9 million. However, the Flutter-owned FanDuel is still the most profitable Ohio sportsbook. Although just barely. Fanduel won $28.48 million, while DraftKings generated $28.46 million in revenue. The Boston-based DraftKings had the largest monthly handle of any Ohio operator in July. It was the first time a sportsbook that wasn’t FanDuel held that distinction. But DraftKings accepted $133.9 million worth of wagers, while FanDuel handled $115.8 million to hold onto that title in August. However, FanDuel was still the most profitable operation, reporting revenue of $15.3 million.
- BetMGM and Bet365 continue to battle for the third spot. In August, Bet365 edged BetMGM for the third-largest handle. But the two swapped spots in September, with Bet365 reporting $41.8 million and BetMGM handling $46.1 million. Bet365 had a higher promo spend as well, indicating BetMGM might have a more consistent customer base and more likely to keep the larger market share moving forward.
All-time online Ohio sports betting revenue
The below numbers are Ohio’s online sports betting figures to date. When you include retail, the total handle is more than $5.2 billion.
| Licensee | Online Brand | Handle | Revenue | Hold | Taxes |
|---|---|---|---|---|---|
| Belterra Park | FanDuel | $1,879,357,313 | $303,037,510 | 16.1% | $33,025,292 |
| Hollywood Toledo | DraftKings | $1,713,591,186 | $201,510,414 | 11.7% | $23,073,547 |
| MGM Northfield Park | BetMGM | $337,867,837 | $56,787,469 | 16.8% | $6,325,978 |
| Cleveland Guardians | bet365 | $312,602,629 | $48,136,266 | 15.3% | $5,334,505 |
| Scioto Downs | Caesars | $234,360,630 | $19,661,102 | 8.3% | $2,251,214 |
| Hollywood Columbus | Barstool | $212,140,779 | $17,104,151 | 8.1% | $1,856,014 |
| Hard Rock Cincinnati | Hard Rock | $88,867,736 | $9,725,141 | 10.9% | $1,081,508 |
| Columbus Crew | Tipico | $61,489,710 | $7,033,183 | 11.4% | $755,772 |
| Hollywood Dayton | BetRivers | $29,529,674 | $1,870,209 | 6.3% | $217,489 |
| Jack Cleveland | betJACK | $24,474,109 | $2,772,976 | 11.3% | $305,262 |
| Hollywood Mahoning Valley | PointsBet | $37,220,679 | $4,519,352 | 12.1% | $496,774 |
| Cincinnati Bengals | Betfred | $21,229,035 | $1,552,275 | 7.3% | $178,877 |
| FC Cincinnati | SuperBook | $9,912,601 | $685,489 | 6.9% | $83,456 |
| Muirfield Village Golf Club | betPARX | $5,657,237 | $429,116 | 7.5% | $46,456 |
| Belterra Park | Betway | $6,806,978 | $692,823 | 10.1% | $77,749 |
| Hall of Fame Village | Betr | $6,040,618 | $458,201 | 7.5% | $51,452 |
| Miami Valley Gaming | MVGBet | $6,320,060 | $258,681 | 4.1% | $40,056 |
| Columbus Blue Jackets | Fanatics | $37,515,012 | $6,654,192 | 17.7% | $1,125,492 |
| Cleveland Browns | Bally's Interactive | $662,939 | $55,903 | 8.4% | $11,180 |
| Geneva Sports | Prime Sports | $366,001 | $12,057 | 3.2% | $2,411 |
| TOTALS | $5,025,921,763 | $627,018,276 | 12.4% | $76,316,723 |
Where does Ohio sports betting tax revenue go?
The vast majority – 98% – of Ohio sports betting tax revenue goes to the sports gaming profits education fund, which is called 5YO0. The other 2% goes towards the sports gaming responsible gambling fund.
Specifically, funds from 5YOo will be distributed to specific organizations when lawmakers come up with the 2024-2025 fiscal budget.
Future Ohio revenue projections
PlayOhio projections have bettors legally wagering between $9 billion and $12 billion per year after an initial acquisition period of 12-18 months. The ramp-up to Ohio’s initial state of maturity was expected to happen more quickly than in some other states given the open licensing structure and the long lead time to launch.
This proved to be true, with Ohio racing out to a record $1.1 billion in January betting volume and around $3 billion over its first three months. PlayOhio now projects that Ohio sports betting could generate $10 billion in bets in 2023. That amount would put Ohio among the biggest markets in the U.S., even at such an early stage.
U.S. sports betting projections rest of 2023
| Rank | State | Projection |
|---|---|---|
| 1. | New York | $17.0 billion |
| 2. | Illinois | $11.4 billion |
| 3. | New Jersey | $10.1 billion |
| 4. | Ohio | $10.0 billion |
| 5. | Nevada | $7.7 billion |
Competition should additionally work in bettors’ favor by keeping sportsbook margins close to the national average of 8.0%. Using that number as a guide, annual revenue should fall between $700 million and $900 million within the same timeframe.
Promotional deductions will keep the total effective tax rate below the statutory 10%, but, based on these numbers, the state should still expect to collect north of $70 million in annual tax revenue from legalized sports betting.
Most popular sports to bet on in Ohio
Ohio does not include sport-specific data in its revenue reports. However, based on what we know about other US markets, we can speculate about which sports are most popular to bet on in OH.
On a per-game basis, football is the king of U.S. sports betting. A full season of NFL and college football action typically accounts for around one-third of the money people bet on sports in comparable markets, and there’s little reason to expect different in Ohio. If anything, the popularity of the Cleveland Browns and Cincinnati Bengals may even increase that percentage.
Projections indicate that the NBA and NCAA basketball accounts for another third of betting action, with March Madness representing the largest sports betting event of the year. Based on other states, college basketball should account for 15% or 20% of the total betting in Ohio. Be sure to keep an eye out for Ohio sportsbook promos close to the time any sporting season starts, it’s one of the best times for vendors to attract new customers.
Even with two MLB teams that call the state home, baseball betting should settle into a distant third place in Ohio. Hockey betting will make up another few percentage points of the total, followed by things like golf, tennis and motorsports.
Ohio responsible gambling resources
• The Play Responsibly Campaign by the Ohio Lottery Commission Providing a wealth of links for treatment services, educational facts on problem gambling, and indicators of gambling issues. Also, it directs users to the Ohio Voluntary Exclusion Program, facilitating self-ban from gambling facilities for various durations. The registration for self-exclusion is conveniently available online.
• The Problem Gambling Network of Ohio (PGNO) An affiliate of the National Council on Problem Gambling, PGNO is a nonprofit advocating for responsible gambling and offering treatment services. They also host informational webinars and skill-enhancing seminars for professionals in the field of problem gambling treatment services.