The Ohio legislature has approved a daily fantasy sports regulation bill that sets a $10,000 yearly license fee and taxes DFS revenue at the state’s commercial activity tax on business gross receipts rate of 0.26 percent.
The bill was passed overwhelmingly in both houses of the state legislature. DFS operators will be required to obtain a three-year license at a cost of up to $10,000 a year.
Ohio residents had not been blocked from playing in DFS games, however, under any previous interpretation of the state’s gambling laws. Several other states—usually through state attorneys general—have moved to block DFS contests saying they violate state gaming laws.
The Ohio bill gives the Ohio Casino Control Commission the authority to regulate fantasy contests and to exempt fantasy contests from state gambling laws. The law also requires that players be older than 18 and bans fantasy contests based on youth or college sports.
The bill now goes to Governor John Kasich for his signature.
Major League Baseball’s Cleveland Indians were among sports teams and companies that supported the law. The team has had a marketing partnership with DFS company DraftKings since 2015.
