Ohio Sports Betting Revenue, Handle and Taxes

Ohio Sports Betting Revenue 

Sportsbook operators and sports bettors alike in Ohio are enjoying their first year betting in Ohio. Sports gambling was legalized on January 1, 2023 and since then, there are 18 individual sportsbooks that have gone live in the Buckeye State. Familiar names like DraftKings, FanDuel, and Caesars are live for play, as well as lesser-known operators like Tipico, Betr, and SuperBook and everywhere in between.

Sports betting is thriving in Ohio and has been since the very first day of sportsbooks going live. In its first month, Ohio broke the U.S. all-time record for monthly sports betting volume as the state saw more than $1.1 billion in bets in January, 2023. So far this year, sports betting revenue has topped $3.5 billion in Ohio. There is a realistic chance that Ohio Sports Betting Revenue ends 2023 in the top 3 of US legal states, although it is more likely to rank 4 or 5.

As North American professional sports hit the dog days of summer, betting volume and revenue has plateaued as there just is not as much activity in the sports world. Volume and therefore revenue should pick back up late summer and be back in full swing by early Fall with the return of NFL and college football, as well as NBA and college basketball.

Early on, DraftKings and FanDuel have dominated the Ohio sports betting market. The combined Ohio Sports Betting Revenue of those significant players amassed 68% of the market share in May and continue to shine. Bet365 just beat out BetMGM for third place in May with both sportsbooks having spent heavily on promotion. There is no shortage of options in Ohio when looking to responsibly gamble on sports. Whether you are a resident or just passing through, you can have peace of mind knowing you will be betting with legitimate operators in a legal state.

Ohio Sports Betting Taxes 

With revenue comes, of course, taxes. Sports betting taxes are one of the more appealing reasons for legislators and voters to push for legalized sports gambling. Ohio was and is certainly no exception. The sports betting tax rate in Ohio is 20% raised from 10% in July, 2023. An increased gambling revenue leads to an increase in taxes which is the primary goal of a new market.

Taxable revenue has exceeded $500 million and taxes for Ohio specifically have exceeded $50 million. Unsurprisingly, the largest contributors to the $50+ million in Ohio taxes has been DraftKings with over $23 million contributed and FanDuel with over $14 million contributed.

The tax revenue in Ohio goes almost exclusively to the sports gaming profits education fund, which is called 5YO0. The exact percentage that goes to 5YO0 is 98% with the remaining 2% going towards the sports gaming responsible gambling fund. The funds from 5YO0 will be distributed to specific organizations when lawmakers come up with the 2024-2025 fiscal budget.

With that in mind, tax revenue affects residents of Ohio more than someone who is not a resident, but happens to physically be within state lines at the time of placing the bet. As more sportsbooks are licensed and as the market grows as a whole, the state will only continue to benefit financially more and more.

Ohio Sports Betting Handle 

If you are not familiar, the handle is simply the amount of money wagered by bettors. It is the amount of money in play across online and in-person sportsbooks. Handle decreased since March, but that has more to do with the aforementioned plateau that comes with a lull in the sports calendar as summer progresses.

From the date of legalization on January 1 through the end of March, football and basketball were key drivers behind impressive betting volumes and numbers. During the months of January through March, sports fans and bettors enjoy the heart of the NFL and college football seasons, bowl seasons, and playoffs, as well as the NBA season and huge betting weekends in the form of March Madness. Once football and basketball return, so too will sportsbook promotions, website and app traffic, betting volume, and therefor Ohio Sports Betting Handle, Ohio Sports Betting Revenue by sport, and Ohio Sports Betting Revenue by state.

Come October, all 4 major North American professional sports will be happening simultaneously in addition to the massively popular college football and basketball. DraftKings and FanDuel are expected to continue to lead the Ohio Sports Betting Handle and Ohio Sports Betting Revenue thanks to continued significant investments in promotion. While they may be most familiar to you, make sure to take a look at competitors in Ohio that may have less handle and attractive promotions and bonuses. The state of Ohio will be off and running for an impressive year 2 of legal sports betting operation and revenue.

Ohio Sports Betting Handle Per Capita 

Sports Betting Handle Per Capita is exactly what it sounds like. Essentially, Ohio Sports Betting Handle Per Capita takes that total handle and reflects the handle of each individual bettor. Sports betting data and analytics are typically dominated toward states with higher populations in terms of high revenues. But comparing a smaller state by population and betting handle to a state with a larger population and betting handle, it is possible that a handle per capita is the same or similar in each state.

The Ohio Sports Betting Handle Per Capita can be calculated by dividing the handle by the population. In the case of Ohio, they currently have a population in 2023 of 11,747,774 and as of May had a total sports betting handle of $446,000,000. With that, the sports betting handle per capita of Ohio is $37.96 per person. Their neighboring state of Indiana has a population of 6,852,542 and a sports betting handle of $224,000,000 giving it a sport betting handle per capita of $32.69 per person. On the surface, someone would notice that the $446 million Ohio Sports Betting Handle was nearly double that of Indiana. But the sports betting handle per capita reflects that both states perform at a similar pace.

Ohio Sports Betting Hold 

Sports betting hold reflects the percentage of money that a sportsbook keeps for every dollar that has been wagered by users. Ohio sports betting hold percentage is averaging 13.20% thus far in 2023. That 13.20% is aggregated across 18 legal online sportsbook operators in the state. Across those operators, Fanatics had the highest hold percentage at 22.30% and MVGBet was the lowest at just 1.50%. The overall average hold percentage of all states is 9.05% so Ohio sports betting platforms are keeping a higher percentage of wager funds from bettors than that of several other states.

While 13.20% shows solid efficiency of revenue held, it can also come across as risky to the OH population. Ohio bettors may refrain from wagering often or with high amounts because the percentages may not be in their favor as opposed to other states. Since 2018, the industry hold average has never surpassed a total of 10% for an entire year, but the average is increasing at a steady pace. Ohio sports betting hold average and industry average will likely be closer in the years to come, which will level the market and hide any concerning hold rates.