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SPORTS BETTING

US – Ohio’s sports betting laws could be the best yet in the US

By - 9 March 2022

Ohio lawmakers have created a regulatory framework for sports betting that is arguably the best in the US, “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 1 January 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 and gives professional sports teams and gaming facilities preferential consideration for licensure. It also allows lottery retailers to host sports betting kiosks with limited offerings and creates a tax rate of 10 per cent of adjusted revenue.

PlayOhio projects that Ohio online and retail operators will generate between $9bn and $12bn in bets annually by the market’s third year. That would produce between $700m and $900m in gross revenue each year. With Ohio’s tax structure, which is 10 per cent of an operator’s taxable revenue, such revenue would mean $70m to $90m 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.”

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