Sports betting enthusiasts in Ohio have a gift to celebrate this Christmas.
The signing of the bill comes about two weeks after the Ohio state House and the state Senate approved the bill with an overwhelming majority. It passed 31-1 in the state Senate and then 72-12 in the state House.
“The reality is that we have sports betting in Ohio today,” Gov. DeWine said. “The only question is, are we going to regulate it? And how are we going to regulate it? And that’s been the question. So, it’s the reality of where we are today. Other states have it. The way that most people are going to be betting is actually on their app, which is the way that people are betting now, many times offshore. So, it’s here.”
When Will Ohio Sports Betting Launch?
The only firm date available now is Jan. 1, 2023. According to the bill, Ohio sports betting must launch by that date.
Other than that, the best guess for a launch date is sometime in the second half of 2022.
“We want to get this up and running as soon as possible, but we’re building a whole new industry,” Sen. Kirk Schuring, R-Canton told the Cincinnati Enquirer. “We’re hoping it can be done sooner (than 2023.)”
Now that the bill has been signed into law, the regulatory process can begin. That involves writing rules and regulations concerning the industry. The Ohio Casino Control Commission will oversee the process, and it will take months. The OCCC said it estimates that it will not begin accepting applications for licenses until at least the summer of 2022.
Big Money Available To The State
The bill allows for 25 mobile sports betting licenses. They will go to casinos, racinos, leagues, and professional teams.
Combining all 25 licenses, the Ohio sports betting market could be $3.35 million after several years of operation, according to a fiscal notice & local impact statement from the Ohio Legislative Service Commission.
The bill sets a 10% tax on revenue from sports betting, and the OLSC’s analysis suggests the net gain for the state could be as much as $7 million in the first half of 2023 and $24 million during the first full fiscal year.
Of that revenue, 98% will go to public and private, K-12 schools — officially named the Sports Gaming Profits Education Fund. The other 2% goes to the Problem Sports Gaming Fund.
Where Will Ohio Sports Betting Be Available?
All entities that wish to offer sports betting in Ohio have to apply for licenses with the OCCC. They would be awarded a five-year license, and those licenses will be divided into three categories.
Type A License: These licenses allow the operation of a mobile sports betting app and cost up to $2.5 million. They are available to pro sports teams, casinos, and racinos. The licensee can enter into a contract with up to two mobile sports betting vendors. The first skin costs $3 million. The second skin, which is only available to entities that prove an economic benefit to the state, costs $10 million.
Type B License: These licenses will be issued to retail stores and cost between $90,000 and $140,000. One is reserved for a business near Cedar Point in Sandusky. The counties of Cuyahoga, Franklin, and Hamilton can have up to five locations. Summit and Montgomery counties can have up to three apiece.
Type C License: These licenses are for businesses that are working an unlimited number of bars and restaurants that have various liquor permits. They can only offer point spreads and totals bets on kiosks.