The float in the carb needs some adjustment. Or, it could be the needle valve needs cleaned, or replaced. That hole there is there to prevent gas from contaminating the oil bath breather, or if the tank is full enough, getting into the engine.
Remove the bowl from the carb., leaving the carb on the tractor. Manual shows the float setting to be 1-5/16" from the top of the float, to the bottom of the upper part of the carb, where the bowl attaches, minus the gasket. Just be careful when separating the bowl from the upper part, and the gasket should come off with it. You'll just have to measure and see,and if that doesn't shut the fuel flow off, set it a bit deeper in the bowl, but not much. 99% of the time, the gasket can be re-used, with no leaks. Also be very careful when removing the bowl, you don't bend/distort the float itself. There isn't much room on either side, between the bowl, and float itself.
While the bowl is off, may as well slide the pin out, holding the float, and check the needle valve for damage, or a bit of something that may be in there, keeping it from sealing off. You can also remove the seat by threading it out, and check for damage.
If you've had the tractor for awhile, and it just started dripping from the drip hole, there is more than likely apiece of debris, rust/dirt keeping the needle from seating properly, and letting fuel by.