Ohio Republican Lawmakers Propose Major New Sports Betting Restrictions: What You Need to Know

Ohio Republican lawmakers proposed major new sports betting restrictions this week, signaling a massive shift in how the Buckeye State handles its booming, yet increasingly controversial, legal gambling market.

Since Ohio officially launched legalized sports betting in 2023, the industry has generated billions in wagers. However, rising concerns over sports integrity, problem gambling, and crime have prompted state officials—led by Governor Mike DeWine—to aggressively rethink the state’s gambling landscape. From skyrocketing tax rates to an outright ban on specific wagers, here is a breakdown of the new restrictions being pushed by Ohio lawmakers in 2026.

The Push for a 40% Sports Betting Tax Rate

One of the most significant proposals on the table is an unprecedented tax hike. In his latest budget proposal, Gov. Mike DeWine has requested doubling the sports betting tax on operators from 20% to a staggering 40%.

If the state legislature passes this measure, it will mark the second time since July 2023 that the tax rate has been doubled (originally starting at just 10%). A 40% tax rate would make Ohio the second-most expensive competitive betting market in the nation, trailing only New York’s 51% rate.

Where will the money go? The governor intends to funnel the new tax revenue—estimated between $130 million and $180 million annually—into a “Sports Construction & Education Fund.” A primary goal for this fund is financing a new stadium for the Cleveland Browns, who are currently embroiled in a legal dispute with the city of Cleveland over relocation efforts. “They’re getting Ohioans to lose massive amounts of money every year,” DeWine stated. “It seems to me only just and fair that some of the stadiums be paid for by them.”

How Ohio’s Proposed Tax Rate Compares to Major US Markets

If the 40% tax rate is approved, Ohio will shift from a middle-of-the-pack state to one of the most heavily taxed sports betting markets in the country. Here is how Ohio will stack up against other major gaming states:

State	Current Sports Betting Tax Rate	Proposed Tax Rate (2026)	Current Prop Bet Status
New York	51%	51%	Banned for in-state college games
Ohio	20%	40%	Full ban proposed
Pennsylvania	36%	36%	No statewide ban
New Jersey	13% (Mobile)	13%	Banned for in-state college games
Michigan	8.4%	8.4%	No statewide ban

The End of Prop Bets in Ohio?

Taxes aren’t the only target for regulators. State officials are actively working to ban “prop bets” (proposition bets) following a string of high-profile gambling scandals in professional baseball.

The move gained immense traction after two pitchers for the Cleveland Guardians were placed on leave amid allegations of intentionally throwing wild pitches to rig bets. Prop bets allow users to wager on micro-events within a game—such as whether a specific player will hit a home run or how many strikeouts a pitcher will throw—rather than the final score.

Gov. DeWine recently called on the Ohio Casino Control Commission to eliminate prop betting entirely, citing the severe risks it poses to athletic integrity. “The evidence that prop betting is harming athletics in Ohio is reaching critical mass,” DeWine noted, urging major leagues like the NFL, MLB, and NBA to support the ban nationwide.

Rising Social Costs and Crime Rates

Behind the aggressive legislative push is a growing body of data pointing to the negative social impacts of legalized gambling. Recently, a peer-reviewed study out of Rice University found that legal sports betting in major markets is associated with a 30% to 70% increase in crime—particularly assaults—in the hours immediately following a game.

Furthermore, state agencies have reported a sharp uptick in residents seeking help for gambling addiction since the 2023 launch. Gov. DeWine, who originally signed the sports betting bill into law, has recently expressed deep regret over the decision, setting the stage for the heavy-handed regulations currently moving through the state capital.

What’s Next for Ohio Sports Bettors?

Sportsbook operators and industry lobbyists are pushing back hard. The Sports Betting Alliance (SBA) warned that a 400% tax increase over a two-year period would result in worse odds and fewer promotions for consumers, while simultaneously driving bettors toward illegal, offshore gambling apps.

However, with bipartisan concerns mounting over sports integrity and local crime, Ohio is quickly transitioning from a sportsbook-friendly frontier to one of the most strictly regulated betting markets in the United States. Whether you are a casual bettor or an industry operator, the coming months in the Ohio legislature will redefine the future of sports gambling in the state.