The Ohio sports betting revenue has been making record-breaking headlines since the state legalized online sports betting in 2023. In January 2025, Ohio again surpassed our expectations by recording a sports betting handle of $1.01 billion.
This milestone is the highest the state has recorded since 2023 and marks the third time the state’s betting handle surpassed $1 billion. This surge shows how successful the sports betting industry has been in the state.
The online age is certainly here, and Ohio’s sports bettors enjoy betting on their devices more than queuing at a brick-and-mortar sportsbook. According to data from the Ohio Casino Control Commission, of the $1 billion handle wagered in January of 2025, roughly $992 million came from online sports betting. With retail bets amounting to just $19 million during the same period.
However, sportsbooks generated $81.1 million in taxable revenue – 28.6% lower than in January last year. While the year-on-year return was lower, this is still 42% above December’s revenue. To put that into perspective, Ohio’s monthly taxable income record was set in January of 2023, when $209 million was collected from sports betting taxes.
The state of Ohio’s online sportsbook scene is a competitive battleground, but when it comes to tax revenue generated, the reigning champion is FanDuel.
While online-based sportsbooks are taking the lead, a handful of store-based operators are keeping up with them.
Ohio off-track retail sportsbooks are far from the largest attraction, but a few are worth it for those who like to go in.
December wasn’t such a good month for Ohio Sportsbooks, as increased customer winnings led to lower revenues. The monthly handle was $963.2 million, 15.9% higher than last year, but the taxable revenue fell to just $57.1 million. That is a 34.7% drop in December 2023 and a 51.2% drop in November.
FanDuel and Belterra Park stood on top of the online betting scene, collecting $24 million on $336.7 million in wagers for a 7.13% hold. Just four retail sportsbooks managed to turn a profit, showing how tough the month was for online sportsbooks.
As Ohio’s sports betting industry grows, so do discussions on taxes. In February, Governor Mike DeWine proposed doubling the state tax rate on sports betting to 40% from 20%. If enacted, it would be the second significant tax hike in three years, following the increase in 2023 from 10% to 20%.
If enacted, Ohio would be the second most expensive state to operate a sportsbook in, behind only New York’s 51% rate. It would be a tight pinch on operators and might result in fewer promotions, more restricted prices, or even some operators exiting the market altogether.
January’s billion-dollar handle has Ohio cementing its status as a significant player in the U.S. sports betting scene. However, potential tax increases threaten to shake things up, compelling sportsbooks to re-strategize.
In the meantime, the competition is fierce, and bettors are still fueling the industry’s growth in the state.
