Gambling: Update and Outlook on Sports Betting in Ohio
Over two years ago, in May of 2018, the U.S. Supreme Court began the pathway of opportunity for individual states to legalize sports gambling.
A 6-3 vote on an initial case, brought forward by the state of New Jersey, erased restrictions from a 1992 federal law prohibiting state-authorized sports betting. The exception for a long while was Nevada as the only state where someone could legally wager (in person) on outcomes of a sporting event.
Since that time, others around the country have consistently started joining Nevada on that list. Now 18 states officially feature regulated sports gambling avenues while another handful (North Carolina, Tennessee, Virginia, Washington) recently passed bills throughout the early stages of 2020.
Ohio has since taken one step closer to joining the party, passing a sports-betting bill by a lopsided count of 83-10 in the final days of May. That bill still needs to make its way through the Ohio Senate, with a few deviations possible before any legal wagers can be placed. For example, the House bill is proposing the Ohio Lottery Commission as the administrator while a separate Senate bill prefers the Casino Control Commission to regulate.
Ohio currently has four stand-alone casinos located in Toledo, Cleveland, Columbus and Cincinnati. The House bill would allow sports betting at not just those primary casinos, but also places such as the seven racinos throughout the state, fraternal halls, mobile apps and online.
"Sports betting could be another amenity at our Hollywood properties and help generate additional visitation, as well as drive incremental tax revenue for Ohio," said Penn National Gaming, which runs the Columbus and Toledo Hollywood properties, in a prepared statement last month. "We welcome the opportunity to discuss legal sports betting with legislators in Columbus and other key stakeholders."
JACK Entertainment runs the casinos in Cleveland and Cincinnati. While different companies operate under various regulations or framework, properly situating rules and aligning activity (knowing current alternatives) would be a must. People in Ohio are already wagering on sports illegally through bookies and offshore accounts, while others simply travel to nearby states and spend money there.
According to Legal Sports Report, as of June 1, reporting numbers show neighboring states such as Pennsylvania ($169 million), Indiana ($72 million) and West Virginia ($30 million) making considerable money. Their ability to offer online wagering has likely been an even bigger separator during the pandemic shutdown.
Ohio appears poised to also begin generating millions in tax revenue for the state, with net profits likely taxed at 10 percent. The current House bill would designate 80 percent of those tax dollars toward K-12 education and the additional 20 percent to support gaming addiction. Conversely, the Senate bill illustrates a lower tax rate with money going into a general fund.
State Representative Dave Greenspan, a joint sponsor of the bill with Brigid Kelly from Cincinnati, recently helped offer a guesstimated timeline as officials try and roll out legalized sports gambling sooner than later.
“I don’t believe we will have a June hearing in the Senate,” said Greenspan, a Westlake native, to 92.3 The Fan in Cleveland recently. “So we come back in September and start aggressive discussions to, hopefully, adopt a bill that both chambers and the governor are satisfied with. The implementations we have seen from other states are about 4-5 months. Along that timeframe, I would hope we can engage in sports wagering before March Madness.”
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