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Sportsbook

Ohio governor proposes increasing gaming tax to help fund stadium construction or renovations, youth sports programs statewide

Tuesday 04 de February 2025 / 12:00

2 minutos de lectura

(Cleveland).- With both the Cleveland Browns and Cincinnati Bengals lobbying for state help for stadium projects, and other teams likely to follow, Ohio governor Mike DeWine offered a solution. DeWine proposed increasing Ohio’s sports gaming tax from 20% to 40% to avoid general fund contributions toward stadium construction and renovation statewide in his 2026-27 fiscal year budget proposal.

Ohio governor proposes increasing gaming tax to help fund stadium construction or renovations, youth sports programs statewide

“I believe that our professional sports in Ohio are very valuable to us,” DeWine said. “I think it's part of our quality of life, but this gives us an opportunity not to have to take general fund dollars away from education or something else, and to be able to actually fund these in the future.”

DeWine stressed that existing sports gaming tax revenue earmarked for education will not be impacted and the new revenue from the tax increase will be directed to a “sports facilities, construction and sports education fund” that would be managed by a commission appointed by the governor and legislature, who would also draft the rules for managing the fund.

The revenue generated from the gaming tax increase would be used for both major and minor league facilities across the state as well as to offset costs of youth sports education and participation and other school-based extracurricular activities.

“We're going to be able to help our young people be healthier, [and] participate in sports,” DeWine said. “So I think it is a win-win win.”

DeWine expects the new gaming tax rate would raise an additional $130-180 million per year on top of the $130-180 million per year it currently generates.

Over 30 years the increase could generate $3.9-5.4 billion for the state to fund stadiums and youth programs statewide.

“Ohio citizens are giving every single day millions of dollars to the sports gaming companies,” DeWine said. “It's time for us to raise the tax on them so that we can do things to help Ohioans. This proposal that I have outlined has the added benefit. No longer will we have to, at any time in the future, go to the people of the state of Ohio and say, your tax dollars will go for this stadium or that stadium.”

DeWine’s proposal would also cap the contribution from the new fund towards a stadium at 40% of the total cost of the project.

The Haslam Sports Group, owners of the Browns, have been lobbying local and state officials for half of the funding for a new $2.4 billion dome to be built in Brook Park off Snow and Engle Roads.

Haslam Sports Group proposed the $1.2 billion public contribution to be divided with $600 million coming from the state and $300 million each from the city of Brook Park and Cuyahoga County.

County officials have balked at the proposal, which includes the county backstopping – or cosigning the bonds for Brook Park.

“We appreciate Governor DeWine's commitment to looking at creative ways to solve sports facilities development while positively impacting youth sports throughout Ohio,Haslam Sports Group chief operating officer David Jenkins said in a statement to 92.3 The Fan. “We look forward to learning more about the options this legislation may provide. At the same time, we continue to work with the appropriate stakeholders and other experienced experts to develop alternative funding mechanisms for an enclosed Huntington Bank Field in Brook Park, knowing the importance of not tapping into existing taxpayer funds that go to other pressing community needs. The model we've proposed on the state level would leverage only the incremental tax revenues from within the development itself to enable the project.

“The Brook Park Huntington Bank Field project is more than just a stadium. Combined with the adjacent mixed-use development, which would be enabled by approximately $2B in private investments, this $3B+ economic development project would be among the largest ever in Northeast Ohio. It truly is a generational opportunity to create a robust, revenue-generating district that will bring in new jobs and new visitors to our region and significantly impact our economy.”

DeWine was asked if the gaming tax increase would be enough cover the $600 million contribution the Browns seek, he said, “I could be.”

The Bengals are also seeking a matching contribution from the state to whatever funding the Browns receive towards a $1.2 billion overhaul of PayCor Stadium, which opened in 2000 on the Cincinnati riverfront.

Categoría:Sportsbook

Tags: Sin tags

País: United States

Región: North America

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