The Ohio sports betting bill overwhelmingly passed by lawmakers Wednesday is poised to bring one of the nation’s most populated states legal wagering. Its structure could also mean one of the nation’s most wide-ranging sports betting markets.
Once signed into law by Republican Gov. Mike DeWine, who has supported legal wagering efforts spearheaded by fellow GOP officials, Ohio will be the first state to permit statewide mobile wagering, retail sportsbooks at casinos and sports venues as well as betting kiosks at potentially hundreds of bars and restaurants.
An industry-friendly tax rate plus access to more than two-dozen online licenses could set up a market that will likely rival New Jersey, Pennsylvania, Nevada and New York among the upper tier of the nation’s highest-grossing legal sports betting states.
Online licenses set to attract all major operators
Ohio’s sports betting bill creates 25 online sports betting licenses but gives the governing Ohio Casino Control Commission (OCCC) the ability to award more if deemed to be in the state’s best interest. Even with “only” 25 operators, all major sportsbook brands would have a license access avenue. Ohio should rival New Jersey and Colorado for among the most sportsbooks of any state market.
Though the two-dozen or so online licenses sets up Ohio for a competitive, operator and bettor-friendly market, the bill is unusually restrictive for existing brick-and-mortar gaming operators. Each of the state’s 11 casino and hybrid “racinos” can have one online license apiece. Certain pro sports franchises and organizations can earn up to two skins, at regulators’ descension. So too can entities that have Ohio employees, even those unaffiliated with gaming or sports.
That shouldn’t create any noticeable issues for bettors – and a limited affect on operators. An existing Ohio casino operator such as MGM, for example, will have no problem launching “just” its BetMGM app. Other companies with existing retail Ohio ties including Caesars, Churchill Downs (TwinSpires) and Penn National (Barstool) seem like safe bets to earn online licenses.
Ohio will be a major target for virtually every other sportsbook operator. DraftKings, FanDuel, Bally Bet, WynnBet, MaximBet and BetRivers are among an impressive list of companies that have either secured market access arrangements or have expressed interest in the market.
Critically, even with the plethora of retail betting options, online betting is expected to make up 90% or more of the state’s wagering handle (and, subsequently, revenues and taxes). The 25 (or so) mobile licensees will determine the market’s strength.
Retail sportsbook details
Ohio will also be the first state to permit retail books at casinos, sports stadiums and other brick-and-mortar business that could have nothing to do with sports. Unlike in most states where the only retail books are at casinos, race tracks or some sort of other gaming facility, Ohio could allow a wide range of in-person betting options.
Forty retail licenses are up for grabs, 11 of which are expected to go to the casinos/racinos and another dozen or so that are expected at the state’s professional sports venues (as well as sites of PGA Tour events). Notably, the law limits the total number of retail sportsbooks to between five, for the state’s most populated counties, and one for its least populated.
Additionally, the bill could allow up to two betting kiosks at hundreds of bars, restaurants and other organizations with liquor licenses. In Ohio, these kiosks will likely resemble (and spread) like keno machines that are seemingly ubiquitous across the state.
Other highlights
Additional notes about Ohio sports betting:
- Licenses could be awarded beginning in April. The first sportsbooks are expected to open sometime in 2022. As with every other state, Ohio lawmakers will likely try to have betting live before next fall’s football season, but its too early to tell if that goal will be reached.
- Operators will have to launch on or after a certain date. Some states have allowed books to go live one at a time as soon as it earns licensure, a method critics say unfairly disadvantages operators who launch after the leader.
- There are no pre-game restrictions on in-state college programs, though there are strict limits on individual player prop bets for NCAA athletes.
- Operators will not have to pay sports organizations for official league data, a move celebrated by gaming stakeholders. These fees, where operators have to compensate the sports leagues for many prop and individual bets, have been widely decried by sportsbooks.
