After reviewing 45 proposed amendments and making numerous last-minute revisions, the Ohio Senate passed a sports betting bill in a 30-2 vote.
Legislators said sports wagering could be launched as soon as April 1, 2022. Net sports betting revenue would be taxed at 10 percent, and would generate $17 million to $23 million starting in mid-2022, analysts said. The revenue would go toward education. Another 2 percent would be directed to problem gambling services.
The proposed legislation allows casinos, racinos and other businesses to apply for one of up to 58 sports betting licenses; 33 are designated for brick-and-mortar stores and 25 for online and mobile betting. Originally the bill offered 40 licenses. The license fee would be $1 million. The Ohio Casino Control Commission, which would oversee and regulate sports wagering, would select who gets a license.
Sports betting licenses would be distributed to brick-and-mortar businesses throughout the state based on a county’s population. For example, Franklin County with more than 1 million residents could have three Type A licenses, while Hamilton County would be limited to two Type B licenses. State Senator Kirk Schuring said, “That’s our way of saying we want to spread the economic value that we think goes with the B license.”
An unlimited number of Type C licenses would go to businesses with a liquor license and would cost $6,000 each. However, they would be limited to two kiosks per store. The kiosks could offer spreads and over/under bets. The Ohio Casino Control Commission would limit how many vendors can provide those kiosks. Each vendor would need to pay a $100,000 application fee.
Ohio’s professional sports teams, the Memorial Tournament and a NASCAR event in Ohio would get preferential treatment when they apply for licenses; they still would have to meet the criteria for a license.
The proposed legislation also would allow electronic instant bingo at veterans and fraternal organizations, with 10 machines per location; ban tax deductions for promotional play credit for five years, then tax deductions at 20 percent, not the current 10 percent; and allow wagers on competitive video games if participants are 18 and older.
The bill now moves to the House, then to Governor Mike DeWine for his signature. DeWine has said sports betting in Ohio is “inevitable.”
In a related development, the Senate Workforce and Higher Education Committee approved a bill allowing college athletes to earn money based on the use of their names, images and likenesses. Under the College Athlete Compensation Bill, universities or college athletic conferences could not punish athletes if they are compensated based on their sports performance. The compensation could include a book-signing at a bookstore or a deal with a local restaurant, for example. Exceptions would include sponsorships for marijuana, alcohol, tobacco and casinos, according to bill sponsor state Senator Niraj Antani. Athletes would have to notify universities 15 days ahead of signing endorsement contracts. Ohio State University football coach Ryan Day urged quick passage of the bill to make sure Ohio schools would not face a recruiting disadvantage with other states that have similar legislation.
Since 2019, at least 16 states have approved legislation allowing college athletes to make money through advertisements, sponsorship deals and other types of promotions. Five of those bills, approved by Alabama, Florida, Georgia, Mississippi and New Mexico, will become law July 1.
