Ohio Sports Gambling Laws
Up until recently, sports betting was illegal in the Buckeye State, leading to players needing to travel to neighboring states to place a wager. Signing up to an operator is easy; however, you have to be physically located within state boundaries.
Luckily, the state passed Bill H.B. 29, which legalized sports betting just days before Christmas 2022, and Ohio sportsbooks began accepting their first bets on New Year's Day.[1] There are now several excellent legal betting sites in Ohio, with more expected to come when they get their license from the OCCC.
There are other forms of legal gambling in OH too, as some of the best US daily fantasy websites operate within the territory of the state. The legal status of betting on DFS was fairly ambiguous before, but in late December 2021, a Sports Betting Ohio bill was passed, which made things much clearer. Finally, DFS became legal.
Fans of land-based casinos will be happy to hear that there are four brick-and-mortar establishments located in the state. Playing poker is legal in these locations or at poker and card rooms. The majority of gaming establishments also host their own tournaments.
There are also a growing number of unregulated offshore betting sites that exist, but we recommend that you avoid these and stick to the best legal online sportsbooks in Ohio instead. Offshore operators don’t have to follow the same standards as regulated betting sites, and there is no guarantee of fairness.
Paying Taxes on Ohio Online Sports Betting Winnings
There is an Ohio sports betting tax, and winnings are taxed like any other income. Ohio winnings are taxed at 4%, however, this is only if they exceed the threshold of $600.
In addition to this, you may also be taxed under federal rules, so be sure to keep accurate records. If you win over the specified threshold, 24% of your winnings may be withheld for federal tax purposes, and if they’re not automatically withheld you still need to declare all your gambling winnings when filing your taxes.
Winnings on other forms of gambling in Ohio, such as bingo games or poker, are also taxable if they exceed a set amount. It’s best to always do your research first for the specific form of gambling to make sure you stay on the right side of the tax law.