Ongoing Hearings on Legalized Sports Betting in Ohio, with Grocery Stores Seeking a Share of the Revenues
Sports Betting Goes Live in Ohio: A Cautious Approach
After years of deliberation and debate, sports betting is now legal in Ohio. The state's regulatory environment, however, takes a more cautious approach compared to some neighbouring states, as outlined below.
As of January 1, 2023, Ohio residents can place bets at both online and retail sportsbooks. The state allows wagering on most sports, including college sports, but has imposed important restrictions. For instance, betting on college player props and certain live player-specific prop bets is currently banned under active legislative and regulatory consideration.
The Ohio Casino Control Commission, the state's regulatory agency, oversees sports betting operations. Notably, the state imposes a relatively high tax rate of 20% on sports betting revenue, a figure that was recently increased to boost state revenues. This tax rate is higher than that of Indiana and New Jersey but lower than Pennsylvania's 36%.
Ohio's approach to prop betting stands out among its neighbours. The state has taken a notably restrictive stance on player-specific live prop bets and college player props, which some other states allow, particularly New Jersey and Pennsylvania, where prop betting is a popular market.
The state's evolving rules on prop bets and live player wagering reflect a cautious approach balancing revenue with integrity concerns, not as emphasized in every neighbouring market. This cautious approach is likely a response to concerns linked to recent MLB investigations and the need to maintain the integrity of sports in Ohio.
The journey to legalising sports betting in Ohio was not without its challenges. Initial plans to make Ohio a legalised sports betting state in 2018 were derailed due to the COVID-19 pandemic and a partisan battle over the virus. FanDuel, among others, had expected Ohio to legalise sports betting in 2020 but this did not materialise.
Industry watchers such as iDEA, a group representing the online gaming and betting industry in the U.S., have advocated for an 8-to-10% tax rate, three skins per casino, and adopting New Jersey's framework. Shawn Kasych, representing Score Media and Gaming, has also advocated for these changes.
Other sticking points included colleges and universities in Ohio being against the bills, disagreements over tax rates, and the number of skins existing casinos and racetracks could have. Despite these challenges, Ohio has managed to establish a mature and active sports betting market.
Interestingly, Ohio residents can already purchase lottery tickets at grocery stores, and Joe Ewig, representing the Ohio Grocers Association, has suggested including grocery stores in the sports gaming system. This could potentially make sports betting more accessible to a wider audience.
In conclusion, Ohio sports betting is mature and active but features higher taxes and more restrictions on prop betting than some states like New Jersey or Indiana, while comparably regulated and expanding rapidly. The state's evolving rules on prop bets and live player wagering reflect a cautious approach balancing revenue with integrity concerns not as emphasized in every neighbouring market.
Comparison Table:
| State | Legal Status | Key Features/Restrictions | Tax Rate (approx.) | Regulator/Notes | |-----------------|----------------------------|--------------------------------------------------|----------------------|----------------------------------------------------| | Ohio | Legal since Jan 2023 | No sports betting on political events; banned college player props; live player props under rule consideration; both online and retail permitted | 20% tax on revenue (betting tax) | Ohio Casino Control Commission; strong support for avid sports bettors; high initial revenue | | New Jersey | Legal since 2018 | Broad market including retail and online; no state restrictions on prop bets; major sports leagues support | ~8.5% on sportsbook revenue (sports betting tax) | New Jersey Division of Gaming Enforcement; largest US market by handle most years | | Indiana | Legal since 2019 | Retail and online; allows most bets including prop bets; restrictions similar to other Midwestern states | ~9.5% on adjusted gross revenue | Indiana Gaming Commission; growing competitive market | | West Virginia| Legal since 2018 | Retail and online sportsbooks operational; taxes on sportsbooks; prop betting generally allowed | 10% tax rate | West Virginia Lottery Commission | | Pennsylvania| Legal since 2018 | Large market with retail and online; allows most betting types including prop bets; sports betting tax high | 36% tax on gross gaming revenue | Pennsylvania Gaming Control Board; one of the highest tax rates nationally |
- The state of Ohio has taken a more cautious approach in its approach to sports betting compared to some neighboring states.
- As of January 1, 2023, Ohio residents can place wagers on most sports, with wagering on college sports allowed, but with certain restrictions such as the banning of college player props and certain live player-specific prop bets.
- The Ohio Casino Control Commission, the state's regulatory agency, oversees sports betting operations in the state.
- The state imposes a relatively high tax rate of 20% on sports betting revenue, a figure that was recently increased to boost state revenues.
- Ohio's approach to prop betting stands out among its neighbors, with the state taking a notably restrictive stance on player-specific live prop bets and college player props compared to states like New Jersey and Pennsylvania.
- Interested parties such as iDEA and Score Media and Gaming have advocated for changes in Ohio's sports betting regulations, such as adopting New Jersey's framework and implementing a lower tax rate.
- In conclusion, Ohio's sports betting market is mature and active, but has higher taxes and more restrictions on prop betting than some states, while balancing revenue with integrity concerns not as emphasized in every neighboring market.
