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Professor Jim Kahler - Director – Sport & Entertainment Management Program - CSU & Ashley Costello - CFP®, MBA - Director, Wealth Advisor - Sequoia Financial Group talked to Bill & Mike about Sports Wagering Ohio Update & Tax Impact On Gambling Winning
Click Here To Listen Live https://www.iheart.com/live/news-radio-wtam-1100-174
All bets are on and Ohio is legal! Ohioans are now able to place sporting bets, and we all love to win when we gamble. However, those winnings are considered income and with that come taxes. Ashley Costello CFP, with Sequoia Financial...explain the tax impact on gambling winnings.
Winnings taxed at Federal, state and local level
Check tax withholding or estimates to make sure you have enough tax paid in. ($5000 payout or more automatically withhold 24%)
Losses can be a good thing sometimes
Professor Jim Kahler - Director – Sport & Entertainment Management Program - CSU - Sports Wagering Ohio Update
· March 2, 2023 — Ohio sports betting handle was a whopping $1.11 billion in January, the state’s first full month in operation. $1.09 billion of that total came via online sports betting. Revenue was $208.9 million, a single-month record for any state. ( 30 states where data is being reported)
· February 23, 2023 — Ohio bettors placed less than $1 million in bets through the state’s 772 Type-C locations (kiosks and counters at lottery-licensed locations) in January. Delayed rollout of kiosks meant the majority of locations could only offer betting at the counter. · February 15, 2023 — DraftKings and Barstool sportsbooks both settled their advertising violations with Ohio regulators. Both operators declined a hearing. Four different sports betting companies have already violated Ohio advertising laws.
· February 13, 2023 — Ohio Gov. Mike DeWine has proposed changing the Ohio sports betting tax rate from 10% to 20% in his executive budget. Ohio online sports betting launched on January 1.
· February 7, 2023 — GeoComply recorded Kentuckians crossing the border into Ohio almost 8,000 times in January to place bets. That number made Cincinnati the top sports betting city in the state for its first live month.
Four key areas that I’m keeping my eye on in Ohio:
· Handle: Amount wagered over the time period.
o $ 1 Billion - 113 Million – 251 Thousand and 403 dollars
· Revenue: Amount of money kept by sportsbooks out of the amount wagered.
o $ 208 Million - 921 Thousand and 342 dollars
· Hold %: How much revenue sportsbooks keep as a function of handle.
o 18.8% ( Highest out of the 29 states I have access to … The average here is 7.7%)
· Taxes/state revenue: Taxes collected by state and local jurisdictions; or state share of proceeds in revenue-sharing markets.
o $ 20 Million – 892 Thousand 134 dollars
o 2% to helping fight addiction = Just over $ 417,000
According to multiple analysts, Ohio's strong first sports betting month exceeded expectations, with the Buckeye State ranking as the second-biggest market by handle for January, according to Ben Fawkes of VSiN Live and DraftKings. Per Fawkes, only New York totaled more wagers in January 2023, with the Empire State tallying $1.8 billion in bets placed.
The main sponsor of a Kentucky sports betting bill believes his relatively simple legislation has a strong chance this year.
While the Kentucky legislative session ends at the end of March, Rep. Michael Meredith is “cautiously optimistic” his KY sports betting bill can reach the finish line. He expects the House Licensing, Occupations & Administrative Regulations Committee will hear his HB 551 next week.
He also believes he already has the 60 House votes “and a few to spare” to achieve the three-fifths majority required in odd-numbered years. Should it pass the House, Senate Majority Leader Damon Thayer told LSR he is ready to advocate for the legislation in his chamber.