Ohio Sports Betting on Verge of Legalization: House and Senate Approve HB29

After months of delays and a lengthy review process, Ohio is finally making some headway towards establishing legal sports betting. On Wednesday, the House and Senate approved House Bill 29 by an overwhelming majority, paving the way for the state’s future legal market. Ohio is the seventh-most populated state in the country with 12 million residents, millions of whom are die-hard sports fans, and several storied sports franchises such as the Browns, Bengals, Cavaliers, and Buckeyes. It now seems imminent that Ohioans will be able to bet on their favorite teams in the not-so-distant future.

HB29 Specifications and Cause for Delay

House Bill 29 initially passed through both chambers, but an amendment added in the Senate created some additional discussion surrounding the incorporation of mobile betting. The original version of HB29 called for casinos to have two sports betting skins and sports teams and leagues to have just one. Now, neither entity is guaranteed a second skin, but they are permitted to get approval from the Ohio Casino Control Commission. The first skin will cost $3 million, and the second skin will cost a whopping $10 million; both licenses would be for five years. In order to be approved for the second skin, the licensee must prove it will have an incremental economic benefit.

In addition to the specification on online skins, HB29 sets forth a 10% tax on sports betting revenue, which is just about the national average. Sportsbooks can deduct their promos and bonus bets to lessen their tax burden until 2027. HB29 allows for 40 retail sportsbooks, up to 25 mobile applications, and many liquor permit holders to offer kiosks at their locations. Retail sportsbooks must be located in a county with at least 100,000 residents. HB29 removes the official league data mandate that many states have.

HB29 also establishes the Ohio Casino Control Commission (OCCC) as the regulatory body for sports betting. Some individuals had lobbied for the Lottery Commission to oversee the industry, including Cincinnati Mayor John Cranley, who stated that allowing 10,000+ small businesses to participate in sports betting that already sell Lottery products would help the entire state of Ohio economically.

When Will Sports Betting Market Launch?

Now that the Ohio Senate and House have approved sports betting, Governor Mike DeWine will sign the bill into law. DeWine has been outspoken about his support for the legalization of sports betting, so that is not expected to take long. After DeWine gives his approval, the OCCC will be tasked with vetting the potential retail sportsbooks and approving licenses to national partners of local casinos, sports teams, and liquor permit holders. Provisional gaming licenses can be awarded through June 30, 2023.

Ryan Butler of Wagers.com has reported that sports betting can begin on April 1, 2022, although it would likely be in a retail-only capacity until approved online licenses. There are expected to be at least two dozen online licenses in the state. Representative Bill Seitz said it is unlikely those licenses will be handed out before January 1, 2023. Retail sportsbooks will be permitted at certain casinos, stadiums, and other approved venues.

We may still be a few months away from the launch of the Ohio market, but make no mistake about it – this is a landmark moment for Ohio sports fans and is certainly cause for celebration.