Details Emerging on Ohio Sports Gambling Bill

Legislators in Ohio have been slow to come around to the understanding that eventually, every state with the exception of Utah and maybe Hawaii is going to legalize sports betting. In many states, that could also lead to online sports betting with an extension into online casino gambling. With that said, it looks like now is the time in Ohio.

After the Ohio House introduced an initial sports betting bill in early May, the reception of the bill was less than enthusiastic. That led the Senate to legislate its own bill, that being Bill S 176, which represents the direction the state will be heading as they work to bring sports betting to Ohio residents.

Now that sports betting seems assured, details on the bill are emerging. Let's take a look at what's on the table now, pending possible future adjustments

Fees and Inclusion

It looks like there is a serious attempt among the powers to be to keep sports betting in the hands of companies that already have a relationship with the state. That won't sit well with small businesses that want inclusion, but that looks like where the state is headed.

For the right to provide sports betting and maybe online casino gambling services in the future, the price tag is going to be big. As of right now, the fee structure includes $1 million for three years worth of licensing per retail outlet or skin. The fact is that number would likely be prohibitive to small businesses.

In addition to the fee, the state would allow 20 mobile licenses (Type A), 20 retail sportsbooks (Type B), plus limited access for the state's lottery.

When Sports Betting Windows Will Open

Among sports fans, bettors, and bookmakers, there was hope Ohio could get legislation passed so the sports betting windows could be open by the start of the 2021 NFL regular season in September. The new sports betting bill makes clear that is not going to happen.

According to the bill, bookmakers would not be allowed to start taking bets until January of 2022. While missing the entire regular NFL season is a major blow, the prospect of the windows being open for the NFL playoffs and Super Bowl lessens the pain.

Exclusion of Outsiders

As stated above, the new bill makes clear that outsiders are not welcome. If a company wants to offer sports betting in Ohio, they had better already have a casino or racetrack already operational within the state's boundaries. That gives a company like Penn National Gaming (four Ohio casinos) a huge advantage. Presumably, top online bookmakers like BetMGM, DraftKings, and FanDuel will also get access to Ohio sports bettors.

That leaves small businesses (bars, bingo parlors, etc.) out in the cold. That's not surprising given that only Maryland and Washington D.C. have given such access. Just the same, it leaves a lot of outside interest disappointed that they won't be getting the opportunity to participate in what promises to be a big financial windfall.