Gross Casino Revenue Tax
In 2009, Ohio voters passed a constitutional amendment that provides for four casino facilities to be located in this state: Cleveland, Toledo, Columbus, and Cincinnati. Click here for a link to the Ohio Constitutional language. The first two casinos (Cleveland and Toledo) opened in May 2012.
The Ohio Casino Control Commission is responsible for licensing and regulating casino operators, their employees, and gaming-related vendors. The Ohio Department of Taxation is responsible for administering the gross casino revenue tax and for ensuring compliance with all pertinent state tax laws, as well as administrative rules and policies as they apply to other taxes administered by the Department of Taxation.
The gross casino revenue tax is imposed on licensed casino operators at the rate of 33%. “Gross casino revenue” is the total amount of money exchanged for tokens, chips, and tickets at a casino facility, less any winnings paid out to wagerers. Click here for a link to the gross casino revenue tax statute. (Please note that, as of July 9, 2012, the on-line version of this language has not yet been updated to reflect the changes occurring in Am. Sub. H.B. 386 or Am. Sub. H.B. 487)
The operators of each casino facility are required to file daily returns with the Department and to remit payments for the related tax liabilities every day that banks are open for business. Each return reflects casino gaming activity over a 24-hour period.
The tax revenue collected from the gross casino revenue tax is split among seven (7) funds benefiting the counties and certain large cities, school districts, host cities, the Casino Control Commission, the Ohio State Racing Commission, law enforcement training, and problem gambling and addictions. Please click here for a breakdown of the revenue flowing into each fund. The Department collects all revenue generated from the tax and allocates such tax revenue to the appropriate funds on a quarterly basis (distributions to localities occur on a quarterly basis, except for school districts, which will receive their distributions semi-annually beginning in January 2013).