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
|1.||New York||$17.0 billion
|3.||New Jersey||$10.1 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.