Ohio sports betting grows 15.9% to $8.9 billion in 2024

Ohioans placed nearly $8.9 billion in sports bets in 2024, marking a 15.9% increase from the $7.7 billion wagered in 2023, the first year of legalized sports betting in the state. 

Despite the rise in total bets, sportsbook revenue declined by 4% to $899.4 million, down from $936.5 million in 2023, according to data from the Ohio Casino Control Commission.

The growth in betting volume contributed to a significant rise in tax revenue, with sports betting generating $180.8 million in 2024, a 35.7% increase from the nearly $133.3 million collected the previous year. Of these funds, 98% were allocated to Ohio public education, while the remaining 2% supported problem gambling services.

Ohio moved up from sixth to fourth place in total betting handle in 2024, surpassing Pennsylvania and Nevada. It now trails only New York, Illinois, and New Jersey. However, with North Carolina legalizing sports betting in 2024, industry analysts anticipate it could challenge Ohio’s position in the coming years.

Online platforms dominated the market, accounting for 98.2% of all wagers, while 1.8% of revenue came from physical sportsbooks and gaming kiosks.

Promotional offers have played a crucial role in Ohio’s sports betting boom. January 2023 remains the state's most lucrative month, generating $208 million in revenue due to aggressive incentives, including $320 million in sign-up bonuses and first-deposit matches. 

November 2024 marks the second highest monthly revenue at $116.9 million, with January 2024 following closely at $113.7 million, driven by NFL playoffs, the College Football Playoff National Championship, and Super Bowl betting.

To further capitalize on sports betting revenue, Ohio doubled its tax rate on sportsbook operators from 10% to 20% in 2024. Despite declining sportsbook profits, this tax hike contributed to increased state revenue.

Governor Mike DeWine has proposed raising the tax rate further to 40%, with additional funds earmarked for sports facility upgrades. The move has sparked debate, with industry experts warning of potential negative impacts.

“A 40% tax would have repercussions and likely lead to some operators leaving the state, meaning Ohio bettors would likely have fewer choices,” said Steve Bittenbender, an analyst with BetOhio.com.

While betting volumes increased, the continued impact of promotional incentives reduced sportsbook profits.

“Generous promotional offers can attract bettors, boosting the handle, but they also eat into the hold, leading to lower revenue for both the books and the state,” said Jo Ann Thomas, spokeswoman for BetOhio.com.

However, Thomas noted that Ohio’s increased tax rate helped offset these losses. “Even with potentially lower revenue due to promotions impacting hold, the state collected more in taxes because of the higher tax rate,” she said.