First Sports Betting Bill Finally Introduced In Ohio

• House Bill 194 sets up the regulatory mechanisms for Ohio sports betting.
• There is no mention of online or Internet sports betting in HB 194.

COLUMBUS, Ohio – For the past few months of the Ohio legislative session, sports wagering has been on the docket, but only as a placeholder. Yesterday, the official House proposal was formally put forward in the form of House Bill 194.

The bill, sponsored by Rep. Dave Greenspan (R-16) and Rep. Brigid Kelly (D-31), has some bipartisan support, though it is impossible to know just how much momentum it’s likely to generate this late in the cycle. There is also a sports betting bill placeholder in the Ohio Senate, but that has yet to be fleshed out with any real proposals.

As it stands now, Greenspan’s legislation would increase the Ohio lottery commission’s membership from nine to 11, with three of those members required to have “gaming experience.”

Under the bill, sports wagering would be managed by the Ohio Lottery, but sports wagering would not be a lottery product, per se.

In many states that fold sports betting into their lotteries, the pastime isn’t taxed. Instead, the full revenue merely goes to the state, less the overhead operating costs paid to retailers and contractors.

In Ohio’s case, the state would allow legal sports betting vendors to apply for licenses to offer sports wagering, with the state taxing their revenues at a rate of 10%. This is in line with the national average, and monies so generated would be earmarked for the state’s casino tax revenue fund.

Online Sports Betting Not Included

Notably absent from HB 194 is any mention of online or Internet-based sports wagering. Further, there is no indication as to where sports wagering would be physically available in the state.

The legislation establishes “sports betting agents” as the operative service providers, hinting that these would be primarily limited to existing gambling venues.

Ohio is home to four commercial land-based casinos and seven racinos. These venues would likely be the first in line to receive sports betting licenses should HB 194 be signed into law.

It is conceivable (but by no means guaranteed) that electronic, self-service sports wagering kiosks would be made available at traditional lottery retailers in Ohio. These would include bars, convenience stores, and similar venues.

That said, it’s basically a sure thing that online sports wagering will eventually make its way to the Buckeye State. According to a 2017 study by Oxford Economics, Ohio sports betting offered with “limited availability” (i.e. at select physical locations only) would generate roughly $203 million in GDP and some $13.4 million in state tax revenue in a mature market.

However, if Ohio sports wagering is available over the Internet and via iPhone and Android apps, those numbers increase tremendously.

With “convenient availability,” the mature-market GDP number jumps to $762 million, while the state’s tax take would sit at about $61.1 million.

Clearly, it is in Ohio’s long-term interest to allow sports betting over the Internet. It will merely take some time to get there, with customers relegated to using offshore books in the meantime.

News tags: OH HB 194 | Ohio | Ohio sports betting