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 has a 10% sports betting tax rate.
So far, Ohio sports betting has brought in:
Total Bets Placed: $3,009,958,844
Taxable Revenue: $449,229,555
Taxes for Ohio: $44,922,956
Below, you’ll find the latest revenue report highlights, Ohio sports betting numbers to date, and projections for the rest of 2023.
April 2023 Ohio sports betting revenue highlights
The market has expectedly slowed heading into the summer, but Ohio’s $3 billion handle from January through April puts the state in position to push $10 billion in 2023. A top-3 US rank is in play, though it will more likely land fourth or fifth in overall handle for 2023.
Here are the most important things to know from the April Ohio sports betting revenue report:
- Ohio sports betting handle totaled $520.6 million in April, which was almost a 30% drop from March.
- Revenue was $63.8 million, a 33% drop from March.
- Ohio inched past $3 billion in total 2023 bets. While the decline from March is notable, it is standard in the US based on the sports calendar.
- The state’s 17 online sportsbooks made up a whopping 97% of total sports betting handle in April.
- FanDuel and DraftKings combined for 67% of the market share in April, despite the market having 17 online sportsbooks.
Ohio sports betting revenue and handle | 2023
| Month | Handle | Revenue |
|---|---|---|
| January | $1.1 billion | $209.3 million |
| February | $638.8 million | $82.8 million |
| March | $737.2 million | $95.1 million |
| April | $520.6 million | $63.8 million |
| Total | $3.0 billion | $449.2 million |
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.
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.