Ohio pulled it off. The state managed to approve sports betting legislation before the end of the year, but it will still be a while before anyone can place their first legal bets.
Ohio Closing Out 2021 With Sports Betting
House Bill 29 was signed by Governor Mike DeWine on Wednesday. This is the start of rulemaking that will allow Ohioans to bet on college, professional, and esports matches. When the market will go live is still open for debate, but is expected to arrive before January 1, 2023.
Senator Kirk Schuring stated after the bill was signed, “We want to get this up and running as soon as possible, but we’re building a whole new industry. We’re hoping it can be done sooner (than 2023).”
The Ohio Casino Control Commission presentation states that regulations and rules for the new industry could take months. It estimates that it will begin accepting applications for businesses who wish to offer betting on sports in the summer or fall of 2022.
Ohio follows 32 other states that have already legalized sports betting.
Ohio Predicts Strong Sports Betting Market
According to an Ohio Legislative Service Commission estimate, the market for Ohio sports gambling is expected to reach $3.35 billion once the operations are up and running. Based on this, a 10% income tax on sports betting net revenues could bring in $7 million in 2023’s first half and $24 million in the initial fiscal year. 98% of that money goes to K-12 education. The remaining 2% will go toward problem gambling support.
If a casino, racino, or sports team wants to offer any form of betting on sports, they must also pay application fees. In the program’s initial months, it is likely that there will be more than $10 million. 0.5% of those fees will be directed towards helping veterans and the families they support.
A Diverse Market Coming to Ohio
The Ohio Casino Control Commission will oversee the licensing process, with three types available for five-year approval. The Type A license is available to Ohio-based casinos, racinos, or sports teams. The cost of a license can reach $2.5 million.
These licensees can sign up with up to two mobile gambling vendors, or skins. The first costs $3 million, the second run $10 million. The second skin is only available for casinos, racinos, and sports teams that provide “economic benefits” to the state.
For brick-and-mortar businesses, 40 Type-A licenses will be made available. These will cost between $90,000 and $140,000. One is reserved for a business near Cedar Point, Erie County. Cuyahoga, Franklin, Hamilton, and other counties can have up to five locations. Summit and Montgomery might have three.
Businesses with certain liquor permits can apply for one of 20 Type C Licenses. This allows them to offer sports gaming kiosks.
Ohio’s four casinos, 11 racinos, eight professional teams, and the state’s PGA and NASCAR events are all expected to apply for a license.