On the Clock: Ohio Races to Launch Legal Sports Betting in 2020

With less than two months left in this calendar year, the state of Ohio finds itself in a race to get their legal sports betting platform launched before the end of 2020. While some hurdles exist, most of the heavy lifting has been done for the state to move forward.

Ohio House Bill 194 was approved in May of this year but the onset of the coronavirus and a few logistical hiccups along the way have bogged down the process. With both sides of state Congress having agreed to legalize sports gambling, there is still some tweaking, which had been interrupted by the Election Cycle, left to do. While many are hopeful to be betting on the Cincinnati Bengals, the Cleveland Browns, and Ohio State Buckeyes before the calendar turns, there is precedence from other states that points to a summer launch for their legal betting platform.

What Is at Stake in Ohio

The state of Ohio has a population of 11.54 million residents, which ranks as the seventh most populated state in the US and is home to teams in all four major North American sports leagues and perhaps the most high-profile NCAA team in the country. The sports betting market, which is already home to 11 casinos and racetracks will be huge once operational.

Research firm Eilers & Krejcik Gaming points to a rabid sports fanbase and predicts a “hypercompetitive online sports betting market that we estimate will generate GGR of $607 million once mature”. The firm says: “We estimate that Ohio is the sixth-ranked U.S. state in terms of sports fandom, and the seventh-ranked state in terms of college football fandom”.

Then there is the much-needed tax revenue. “Under our bill, the resources from sports betting would go toward education and with everything that has happened, in particular, related to COVID-19, we think it’s especially timely that there will be additional resources to go to that because there have been cuts to education,” said Representative Brigid Kelly, a sponsor to OH HB 194, in June.

What the Platform Figures to Look Like

Bill 194 looks like the best path forward for the legal sports betting platform in Ohio although the latest draft has a few issues that will be discussed later. As it stands, Ohio will likely adopt a relatively low and competitive 8% tax rate, a $100,000 fee for a five-year license for casinos and racinos and will go ahead without an official league data mandate.

One of the remaining cogs in the legislation plan is just who will run the platform. The House Bill wanted the Lottery Commission while the Senate Bill called on the Casino Control Commission (CCC).

Bill 194 actually has room for both.

The Issues

Election Night in the US claimed three of Ohio's biggest sports betting legislation supporters - Rep. Dave Greenspan and Sen. Sean O’Brien and Sen. John Eklund. What that means is essentially starting over again with a new bill and sponsors next year or proceeding with the bill in the lame-duck legislative session. Ohio Senate President Larry Obhof, who sets the Senate agenda is a strong opponent of a sports betting platform in the state to boot.

The latest draft of Bill 194 has presented a new issue that could affect the caliber of providers entering the Ohio market. The new draft will cut the number of sports betting licenses to two for each casino and racino operator in the state, instead of 3, and award a total of 22 licenses, which also represents a decrease from 33.

In the End...

It generally takes a sports betting platform about 6 months to get off the ground. Although Ohio got a bit of a head-start, they are certainly a ways away from nailing down just what their platform will look like. That said, the end of the year is still the goal for launch.

Sports Betting Heavyweights BetMGM and PointsBet have already signaled their desire to enter the Ohio market right off the bat. That's great news for Ohio. The bad news is that there is no firm timeline for sports betting for Ohio citizens.

General consensus is that it is time for Ohio to catch up to their neighbors Indiana, Illinois, Iowa, Pennsylvania, and Michigan in terms of legal sports betting. Bettors in Ohio, until the platform goes live will keep heading to their neighbors or use offshore sportsbooks. So, the pressure is on.