Ohio bettors won’t be able to wager on games until January 1, but the state could enjoy a windfall of $30 million this year from fees.
According to PlayOhio, applicants have forked over nonrefundable fees of $9.6 million already. If approved, vendors pay a licensing fee before being able to accept bets. Operators also pay an annual fee to continue the license. Then after five years, the entire process starts anew.
Estimates of annual license fees could come to $5 million, with tax revenues of around $50 million, according to the Center Square.
Class A gaming licenses—required to offer online betting—cost from $500,000 to $2.5 million, depending on the type of business. Annual fees range from $125,000 to $625,000 with renewal fees of up to $750,000 after five years.
At the outset, the state has limited the number of Class A licenses to 25. To be selected, the vendor must have a Class B license or business in Ohio with multiple employees.
A Class B gaming license, limited to 40, is for in-person betting. The initial fee is either $50,000 or $100,000 depending on the operator also holding a Class A license. Annual fees are $10,000, with renewal fees same as the initial fees.
The state approves Class C licenses for businesses that host gaming kiosks, like restaurants and bars; a liquor license is required. More than 1,300 vendors have paid the $1,000 application fee for a Class C license. The license fee is $25,000, renewable after five years with no annual fees in the meantime.
The C-licensees receive a commission on the state’s proceeds unless they receive permission from the gaming commission.
Gaming revenues are taxed at the rate of 10 percent by the state. Of the amount received, 98 percent goes for public and private schools and the remainder funds problem-gambling programs.
