The number of states that have legalized sports betting continues to increase. That growing list now includes Ohio after the state passed House Bill 29 and Gov. Mike DeWine signed it into law in December 2021.
The Buckeye State stands alongside neighbors Michigan, Indiana, Pennsylvania, and West Virginia. The states that allow their residents to legally place sports wagers extend beyond those listed. However, as far as Ohio is concerned, those are the states attracting Ohioans to venture within their borders to take part in legal sports betting.
States that remain on the illegal side of the sports-betting fence surrender the potential financial benefits that other states are reaping. The influx of revenue is one of the primary reasons states pass sports betting into law.
Ohio stands to rake in the big money that has flowed into states that have legalized sports betting. But what does that financial success look like?
There’s no one-size-fits-all template for how states oversee sports betting. Every state has its own regulations and terms, just as Ohio does as it continues to proceed toward an official launch. For example, Ohio has a unique tax structure that requires future licensees to pay taxes daily.
Still, Ohioans who want to develop a feel for the financial impact of sports betting can draw insight from their neighbors.
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Ohio’s Sports Betting Neighbors And Their Revenue
Sports betting in the Hoosier State was legalized in September 2019 with mobile sports betting launching the following month. Revenues really started to pick up in September 2021, perhaps the result of a combination of the start of football season and a couple of years of maturity in the sports betting industry. Whatever the recipe was, it’s produced growth. In September 2019, Indiana pulled in $8,558,974 compared to $14,283,702 in September 2020, and $33,878,239 in September 2021 — its third-best month overall since legalized betting hit the Indiana market.
The timing of the legalization of sports betting in Michigan couldn’t have been worse. Just as the law allowed for Michigan residents to bet on sports, sports leagues around the globe were shutting down due to the Coronavirus pandemic. The regulations only allowed for retail betting initially, but online sports betting has since been launched. It’s fair to call Michigan’s foray into sports betting a success. It has set total handle records for five straight months and counting. Naturally, they also enjoyed their top revenue month during that stretch with $58,448,729 in November 2021.
Pennsylvania has both retail and mobile sports gambling within its borders. The state has been successful in the sports betting industry with a number of mobile apps active and more expected. The Keystone State has experienced success in spite of a hefty tax rate that had some believing that sportsbooks would shy away from pursuing a place within Pennsylvania’s market. In 2021, Pennsylvania casinos combined to generate $340 million in sports betting revenue.
Sports betting has been in West Virginia since 2018 as they had set the legal wheels in motion prior to the federal ban being lifted. It hasn’t been a completely smooth ride. Not unlike other states and industries that struggled through the pandemic, sportsbooks in West Virginia had to shut down, leaving West Virginians with very limited options to place bets. Month-by-month revenue has stabilized after enduring its lean stretch.
What To Expect From Ohio Sports Betting
Given the success Ohio’s neighbors have had, it’s not a surprise lawmakers eventually opened the legal gates. Ohio is as serious about its sports as any of its bordering states. And thus, it’s realistic to envision similar degrees of financial success for the state. Time will tell what ultimately transpires as retail and mobile sportsbooks launch over the second half of the year. For now, though, the future of sports betting looks promising.