The regulatory sports betting framework created by Ohio lawmakers has been praised by PlayOhio, which tracks the state’s regulated online gaming and sports betting market, as it could offer one of the US’ best sports betting markets “free from any significant flaws or limitations that could stifle Ohio’s industry.”
The Ohio law authorizes both retail and state-wide online betting on all professional and collegiate sports, plus esports and the Olympics.
It also allows professional sports teams and gaming facilities preferential consideration for licensure, as well as permits lottery retailers to host sports betting kiosks with limited offerings. The law also has a tax rate of 10% of adjusted revenue.
The Ohio Casino Commission is hoping to launch sports betting on January 1, 2023, giving lawmakers time to fine-tune the law from efforts that began in 2018.
Eric Ramsey, a data analyst who co-authored the PlayOhio.com market analysis, commented: “The state took its time in legalizing sports betting and then took a collaborative approach with existing casino stakeholders, local pro sports franchises, and the lottery program. The result is a structure that is the new standard in the US.”
PlayOhio predicts that the Buckeye State’s operators will produce a $9bn to $12bn handle annually by the market’s third year, with $700m to $900m in gross revenue each year, yielding $70m to $90m in taxes for the state annually due to the 10% tax rate.
“This framework provides a firm foundation for operators to build what should be one of the nation’s largest, most dynamic sports betting markets,” Ramsey added.
“The state’s sports landscape and the affinity for land-based gambling among its residents and visitors additionally bode well for the future of sports betting in Ohio. Ohio appears poised to emerge as the second- or third-largest sports betting market in the country, clearly behind New York, but perhaps rivaling Nevada, New Jersey, and Illinois for No. 2.”
PlayOhio adds that the Buckeye State has created a ‘best-in-class’ policy with a ‘competitive online environment’ that encourages the state’s existing land-based casinos to participate. There are also minimal restrictions on wager types and no meaningful limitations on college sports betting.
Ramsey concluded: “The law strikes a pragmatic balance between rewarding the state’s existing stakeholders – the casinos, racinos, and lottery – and incentivizing participation from the largest national sports betting brands.
“Every major operator in the country will seek licensure in Ohio, fostering the sort of competition that is essential to generating wagers in significant volume.”