Columbus Council acts to ensure city taxes paid on sports bet winnings
Columbus City Council on Monday took action to ensure they are getting their share of the fledgling legal sports gambling industry in Ohio.
The City Council passed legislation requiring certain sports betting sites to withhold Columbus income taxes from those who win at least $600.
Sports betting:Ohioans placed $1.1 billion in sports bets the first month it was legal in the state
Those required to withhold taxes would be:
∎ A casino facility or operator.
∎ A lottery sales agent with video lottery terminals.
∎ A proprietor offering sports gaming at a sports gaming facility.
The amount on which a tax needs to be withheld is determined by if it is high enough to be reported to the Internal Revenue Service for federal taxes.
"If you win $600 or more, you should assume that you have a tax responsibility," Columbus Auditor Megan Kilgore said. The city's income tax rate is 2.5% and sportsbook apps based in Columbus should be sending winners 1099 Miscellaneous Income forms, she said.
Kilgore said that that her office has not determined how much more income tax revenue the move would bring to the city.
According to the Ohio Casino Control Commission, Ohio's four casinos, including the Hollywood Casino Columbus, have generated $2.7 billion, well below the $5.2 billion to $7.1 billion estimated in 2009.
But 2021 was a record year, with $310.5 million.
Legalized sports betting took hold in Ohio on Jan. 1. The state is expected to release the first information on sports betting revenues on Tuesday, as the Ohio Casino Control Commission plans to fine sportsbooks across the state for advertising practices that violate state law.
This article originally appeared on The Columbus Dispatch: Columbus Council acts to ensure city taxes paid on sports bet winnings
