Ohio Bill Would Legalize Sports Betting

Two Buckeye lawmakers, Senators John Eklund (l.) and Sean O’Brien, have introduced a bill that would legalize sports betting. The bill would require passage by both chambers of the legislature plus a referendum that would allow Ohio voters to amend the state constitution.

Ohio Bill Would Legalize Sports Betting

Two Ohio state senators have introduced a bill that would create framework for sports betting in the state.

Senate Bill 316, introduced by Senators John Eklund and Sean O’Brien is what is known as a “shell” bill, one that leaves the details largely to be filled in. That’s on purpose, says O’Brien. Details needed clarification include whether bets could be made on major sports teams or college teams.

In fact, all the bill says is this: “It is the intent of the General Assembly to develop and enact legislation legalizing sports wagering.”

O’Brien said he wanted the bill to have a number and then to encourage feedback from constituents. He hopes to fill out some of the details by next month or the end of summer. There is plenty of time since the Buckeye state’s legislative session ends on December 31.

Last week O’Brien said, “My thinking right now is we already have casinos and racinos set up. I’d kind of like to keep it in those institutions because they are set up for gaming. I’m not sure we want it in every 7-Eleven … and every bar.”

The state is getting some pressure from neighboring West Virginia, where sports wagers will be taken at casinos and racetracks by the end of August or early September; and from Pennsylvania, where it is already legal.

It’s also getting prodded by Jack Entertainment, which owns three casinos in the state, whose CEO Matt Cullen wrote last week: “Under the proper regulatory framework, we support the State of Ohio moving forward with sports betting at brick and mortar facilities.” He added, “However, the detailed state regulations that will be written in response to the Supreme Court’s decision will determine the safety and viability of this potential amenity. Certainly there is significant guest interest in sports betting being available at our facilities.”

Jack’s controlling interest is held by Dan Gilbert, owner of the Cleveland Cavaliers, which complicates any sports betting laws. Different states treat this issue differently. In Atlantic City regulations would prevent the Golden Nugget, owned by Tilman Fertitta, who also owns the Houston Rocks, from taking any NBA bets. However, in Nevada regulations only forbid a casino from taking bets on games in which the owner’s team is involved.

Given that homegrown fans of Ohio State University are known for their intensity, betting on college games has a built in complication.

It is also the home to several NCAA football and basketball teams, including members of the American Athletic Conference and the FBS Mid-America Conference.

Other details to be worked out would be a tax rate. Currently the state’s four big casinos and seven racinos pay a 33 percent tax.

Ecklund said he doesn’t expect to see legalized sports betting before mid-2019.

Both houses of the legislature would first have to pass a bill legalizing sports betting, then voters would need to amend the state constitution. Casinos taxes go for education, host cities, the Ohio Casino Control Commission, Ohio Racing Commission, law enforcement and addiction programs. Racinos pay after expenses profits to education.

Thirteen other states have either introduced sports betting legislation or adopted such legislation.

O’Brien said he’s in no hurry to flesh out the bill. “We want to make sure we do it and do it right,” he told the Cleveland Plain Dealer.