After a 3-year effort, the Ohio General Assembly recently passed House Bill 29, legalizing sports betting in the state by the end of 2022. The bill passed with bipartisan approval by wide margins in both chambers; 31-1 in the Senate and 72-12 in the House.
The legislation now goes to Governor Mike DeWine, who is expected to sign it within the 90-day window. In March, DeWine said, “Sports gaming’s already in Ohio. Ohio’s just not regulating it. This is something that I think is inevitable. It’s coming to Ohio. I will have the opportunity to weigh in at the appropriate time, but sports gaming is certainly coming to Ohio.”
Before the votes, a House and Senate conference committee approved a compromise version of HB 2. Last-minute changes included lowering the license fees for smaller bars wanting kiosks and changing the cap on online betting platforms.
State Senator Kirk Schuring, lead negotiator on the bill, said, “We all know sports gaming is going on as we speak, illegally. We’re putting the necessary regulatory provisions in place to make sure it’s done correctly in Ohio.” He said the bill will allow Ohio to keep betting proceeds now going to the black market and neighboring states that allow sports betting.
Under the bill, the state must begin issuing licenses on April 1. Additional time would be necessary to establish the new regulations, including administrative rules. The bill requires sports betting to be available no later than January 1, 2023 but more likely would launch sometime next year. It would be regulated by the Ohio Casino Control Commission; the Ohio Lottery Commission would regulate kiosks operating at lottery retailer locations.
Casinos, stadiums, bars and restaurants could apply for a 5-year gambling license, including: 25 Type A licenses for mobile apps; 40 Type B licenses, for brick-and-mortar operators; and thousands of Type C, for kiosks and certain lottery retail agents.
The legislation limits the number of betting facilities per county based on population; for example, Cuyahoga County could have five, and Lake, Lorain and Medina counties could have one. The bill also requires bettors to be at least age 21. Bets could be placed on all professional and collegiate sports and events but none with participants in high school or under the age of 18.
The bill would tax net sports betting revenue at 10 percent; 98 percent of that would go to public and private schools with 2 percent directed to problem gambling services. Legislative analysts projected sports wagering would generate up to $20 million in annual tax revenue; revenue from licensing fees could surpass $10 million in the first year. The analysts also forecast when the market is fully developed, Ohioans will place $3.35 billion in sports wagers annually.
