LAS VEGAS, March 8, 2022 /PRNewswire/ — Ohio lawmakers created a regulatory framework for sports betting that is arguably the best in the U.S., "free from any significant flaws or limitations that could stifle Ohio’s industry," according to new market analysis from PlayOhio, which tracks the state’s regulated online gaming and sports betting market.
"The state took its time in legalizing sports betting and then took a collaborative approach with existing casino stakeholders, local pro sports franchises, and the lottery program," said Eric Ramsey, data analyst who co-authored the PlayOhio.com market analysis. "The result is a structure that is the new standard in the U.S."
The Ohio Casino Commission is targeting a Jan. 1, 2023, launch of sports betting, making good on a legalization effort that began in the Buckeye State in 2018. The long lead time may have been a blessing in disguise, allowing lawmakers to fine-tune the law to near-perfection, according to the market analysis.
Among the highlights, the law:
- Authorizes both retail and state-wide online betting in Ohio.
- Allows betting on all professional and collegiate sports, plus esports and the Olympics.
- Gives professional sports teams and gaming facilities preferential consideration for licensure.
- Allows lottery retailers to host sports betting kiosks with limited offerings.
- Creates a tax rate of 10% of adjusted revenue.
PlayOhio projects that Ohio online and retail operators will generate between $9 billion and $12 billion in bets annually by the market’s third year. That would produce between $700 million and $900 million in gross revenue each year. With Ohio’s tax structure, which is 10% of an operator’s taxable revenue, such revenue would mean $70 million to $90 million in taxes for the state each year.
"This framework provides a firm foundation for operators to build what should be one of the nation’s largest, most dynamic sports betting markets," Ramsey said. "The state’s sports landscape and the affinity for land-based gambling among its residents and visitors additionally bode well for the future of sports betting in Ohio. Ohio appears poised to emerge as the second- or third-largest sports betting market in the country, clearly behind New York, but perhaps rivaling Nevada, New Jersey, and Illinois for No. 2."
Ohio built a best-in-class policy that fosters a competitive online environment while encouraging participation from the state’s existing land-based casinos.
In addition, the state placed minimal restrictions on the types of wagers sportsbooks can offer, nor there are no meaningful limitations on college sports betting.
"The law strikes a pragmatic balance between rewarding the state’s existing stakeholders – the casinos, racinos, and lottery – and incentivizing participation from the largest national sports betting brands," Ramsey said. "Every major operator in the country will seek licensure in Ohio, fostering the sort of competition that is essential to generating wagers in significant volume."
For real-time updates on regulated sports betting in Ohio, visit www.playohio.com/sports-betting-market-analysis/.
About the PlayUSA.com Network:
The PlayUSA.com Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over two dozen states, PlayUSA.com and its state-focused branches, including PlayOhio.com, produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, the PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.
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SOURCE PlayOhio.com
