The Ohio Select Committee on Gaming held a hearing on sports betting May 19. They got an earful from organizations who felt left out of the mix under consideration.
David Corey, executive vice president of the Ohio Bowling Centers Association, called the part of the legislation dealing with the lottery and betting pools unworkable. Bettors would be able to pick winners—either singly or as part as larger groupings—for $20. All the money goes into a pool, with the lottery taking $5 out of each wager. Whoever wins splits the pot.
According to Corey’s longwinded objection: “Let’s say the Browns are playing the Steelers, and the Browns are favored by 20 points. Since the pool idea is just betting on the winner with no odds or point spread involved, almost everyone will bet the favorite in that situation. So you’ve got 10,000 people that bet the $20, 8,000 people bet on the Browns and 2,000 on the Steelers. You have $150,000 in the pool for the winnings.
“If the Browns win, those 8,000 bettors who bet on the Browns would only get a payout on their $20 bet of $18.75. After the first week of this no one is going to use this. They’re going to figure out it’s basically a scam. Now if the Steelers win, those bettors would get a $75 payout. It’s novel, it sounds good, but it’s the most unusable and unworkable thing I’ve ever seen.”
Corey prefers sports betting options at lottery kiosks, which has the support of the lottery and the Ohio Grocers Association, according to Sports Handle.
“Please allow the lottery and its retail partners to implement new games under the strict protocols to which they already adhere,” said Kristi Mullins, the president of the grocers’ group.
Sports teams have concerns of their own.
Under the legislation, there would be 40 non-lottery sports betting licenses issued. The three year licenses would cost $1 million each. Twenty of them are Type A for mobile only and 20 are Type B for brick-and-mortar only. Type B permit holders would be allowed to apply for Type A licenses, and there is no limit to the number of mobile partners a Type A license holder can have. Confused?
Of those licenses, 20 would go to 11 casinos and racinos, and partner with online and mobile app-based betting services, such as DraftKings. Another 20 would go to in person betting such as sports bars that offer prop bets.
If a location wants online and in-person betting, the owners would need to obtain two licenses, according to the Cincinnati Enquirer.
“We believe there are opportunities to improve upon the current legislation,” said Jeff Healy, of the Cincinnati Reds.
Healy requested a system where pro sports teams and the casinos and racinos could control a license with a sportsbook partner. He also wants to limit the number of mobile skins per license.
“The 20 Type A licenses should be limited to one skin, or brand, so there are only 20 online mobile skins operating in Ohio,” he said. “Twenty skins are more than enough.”
Healy also asked when it comes to Type B licenses, sports teams, casinos, and racinos should go to the front of the line.
As drafted, the bill provides “no pathway for Ohio’s professional sports business,” added Ted Tywang of the Haslam Group, which owns the Browns. “Provisions would flat-out prevent participation based on our business structure and league rules, and also create an unhealthy monopoly.”
A collective of teams under the banner of the Ohio Professional Sports Coalition reminded lawmakers that its members produce the games that make sports betting possible. “It’s important that our businesses have fair market access to mobile and physical sports betting applications included in the Senate bill.”
- Todd Jones, representing the Association of Independent Colleges and Universities of Ohio, asked for language to prevent bettors from wagering on small-college sports as well as club-level competition. As written, the bill permits both bets.
Sports betting would be regulated by the Ohio Casino Control Commission with a 10 percent tax. Revenue from taxes would aid schools, with 2 percent going toward problem gaming and addiction services. License fees would be distributed in the same way. The bill also permits electronic bingo at veterans or fraternal organizations.
Lawmakers hope to pass it before the end of June. But if approved, the state could face a legal challenge as the constitution bans most gambling.
