Ohio has (or will soon have) four casinos: one in each of Cincinnati, Cleveland, Columbus, and Toledo. The good news for Ohio gamblers is that beginning in 2013 Ohioans can deduct gambling losses on their state income taxes. The bad news is that you had better include those gambling earnings in your city income tax.
Columbus became the last of the four cities to expressly include gambling winnings in their city income tax. Ohio city income taxes do not allow a deduction for gambling losses, so these taxes all function as gross income taxes. And the tax rates aren’t small: Cincinnati is 2.1%, Cleveland is 2%, Columbus is 2.5%, and Toledo is 2.25%. I’m certain that slot winnings of $1,200 or more will now be on a W-2G with city income tax withheld.