Ohio Eases Sportsbook Licensing Regulations

Ohio has made it easier for sports betting companies to get a license.

The Ohio Casino Control Commission has changed its rules for sports betting licenses to be more lenient for those who haven't yet started their businesses. This is part of an effort to make the state's sports gambling program, which began on January 1, 2023, work better.

Updated Guidelines for Unclaimed Licenses

Before, in Ohio, if you had a sportsbook license, you had to start using it to take bets within a year or it might be taken away. But that rule has changed. Now, Matthew Schuler, the head of the OCCC, can decide at any time during the five-year term of the license if it should be revoked.

Now, you won't lose your license just because you aren't using it.

What This Means for People with Licenses

• No forced launch within 12 months of receiving a license.
• The OCCC will not automatically revoke unused licenses after a year.
• Licenses are valid for five years, with usage at the discretion of the OCCC executive director.
• Operators faced with unforeseen delays have breathing room to start their sportsbooks.

The changes are good news for some businesses that still haven't started their sports betting services. This includes the Cleveland Cavaliers from the NBA, Jack Thistledown Racino, and the NFL Hall of Fame Village, all of which have licenses they haven't used yet.

Ohio Sports Betting in Numbers

In its first year, people in Ohio bet more than $7.65 billion on sports. The companies that offer betting kept $937 million of this money. The government takes 20% of the profits for taxes, and this money mainly helps fund schools. Despite the large amount of money involved, not all the available betting licenses were used. This led to some changes in the rules.

Market Response and Impact

In Ohio, most people placing bets online use FanDuel or DraftKings, as these two companies control 70% of the market. BetMGM is next with an 8% share. Since Ohio has made it easier for companies to get a license, more companies might start offering betting services, giving customers more options.

Ohio still has Type A and Type B sports betting licenses up for grabs. This could lead to more companies starting sports betting operations there, which might help the state's gambling industry grow.

Laws and How Money is Shared

Ohio now taxes sports betting at 20% after raising it from 10%. This tax money is mainly used for public education, which gets 97.5%, while 2% helps with gambling addiction and 0.5% supports veterans. The state aims to create a successful betting industry that also helps fund these important areas.