Sports Betting Has Come to Ohio
Sports gaming is finally coming to Ohio. The legislature passed House Bill 29 which authorizes sports gaming in Ohio no later than January 1, 2023. The new version of the bill that came out of months’ of negotiation within the conference committee provides numerous opportunities for entities wishing to enter Ohio’s sports gaming market.
Types and Number of Licenses Available
Ohio will provide three types of gaming licenses:
- Type A, online sport gaming proprietors;
- Type B, brick and mortar sports gaming proprietors; and
- Type C, lottery sports gaming proprietors.
Each type of license will be limited though there is the possibility the Casino Control Commission could issue more than the initial limit of type A licenses. Initially, there will be no more than 25 type A licenses, 40 type B licenses, and 20 type C licenses.
Bars and Sports Gaming
Type C licenses will authorize type C sports gaming proprietors to offer lottery sports gaming. Lottery sports gaming means sports gaming conducted by a Type C sports gaming proprietor on behalf of the state lottery commission and offered through type C licenses hosts. Any D-1, D-2, or D-5 liquor permit holder may apply to be a type C license host. A type C license host will be allowed to have, initially, up to two sports betting kiosks or clerk operated sports gaming terminals where limited bets will be allowed. Type C sports gaming proprietors will only be allowed to offer the following types of bets:
- Spread wagers;
- Over-under wagers;
- Moneyline wagers; and
- Parlay wagers that are based on not more than four component wagers.
Type C self-service terminals or clerks will not be allowed to accept wagers aggregating more than $700 in a calendar week from any one participant.
The law sets out initial and renewal license fees for each license type but have left the application fee to be set by the Casino Control Commission. License fees vary not only by license type but also within certain license types depending on whether or not the applicant is a professional sports organization or how many skins the applicant may have or how many license types the applicant may have.
The law also sets out various criteria each applicant must meet at a minimum but also leaves some room for the Casino Control Commission to establish rules and criteria for the application process.
Casino Control Representatives have stated that though sports gaming is finally coming to Ohio it will be later rather than sooner. The Commission will have to craft rules, offer them for public comment, and then get them approved. This process is expected to take at least five to six months. Realistically, this means hopeful market participants will not be able to even apply for a license until summer or fall of 2022.
The Ohio Casino Control Commission has already issued its first set of proposed rules which can be found here.
Feel free to contact us if you have any questions.