Ohio Gaming Commission Loosens Sports Betting Permit Requirements
The Ohio Casino Control Commission (OCCC) has made it easier for holders of sports betting licenses in the state who haven't started their operations yet by removing the requirement for them to use their licenses within a year of issuance or face revocation.
Originally, the OCCC regulations stipulated that sportsbook licensees had to start accepting bets within twelve months of getting their licenses. However, the OCCC has now changed this provision, allowing sportsbook operators to keep their licenses as long as they don't accept any bets. The validity period for these licenses is still five years, and the OCCC's Executive Director, Matthew Schuler, has the authority to revoke the licenses anytime during this period if bets haven't been accepted.
The change simply removes the requirement to revoke unused licenses.
Sports Betting in Ohio
Legal sports betting began in Ohio from January 1, 2023. The state permits in-person operations at racetracks, casinos, and other retail locations, as well as online betting. So far, the OCCC has given six-month extensions to the previous launch rule to operators who needed more time before beginning their operations. Schuler said that the recent changes mean the OCCC will no longer be legally bound to take any action after a year from the issue of the licenses, or consider extension requests.
This policy change is a relief to some sports betting licensees who haven't started their online and/or retail betting businesses. Among those are the NBA Cleveland Cavaliers, Jack Thistledown Racino, and the NFL Hall of Fame Village in Canton.
At a recent commission meeting, Schuler revealed that a few sports betting licenses were still unused. The Cleveland Cavaliers, who possess both Type A and Type B licenses, have used only the retail license through their partnership with Caesars Sportsbook. They had previously planned to partner with Fubo Sportsbook for an online facility, but that was halted when Fubo Sportsbook closed down in late 2022.
Similarly, Jack Thistledown faced problems with their online betting initiative. Although they operate a retail sportsbook called BetJack, the racino's plans to launch an online sportsbook with WynnBet were abandoned when Wynn Resorts ceased its online sports betting operations last summer.
Sports Betting in Ohio: The Numbers
In Ohio's first full year of regulated sports betting, sportsbooks accepted over $7.65 billion in bets. This resulted in a hold rate of approximately 12%, yielding $937 million in profit for sportsbook operators.
However, FanDuel and DraftKings held the majority share of the market, accounting for more than 70% with FanDuel alone accumulating 45.1% of that figure. BetMGM was the third-largest in the market with a 7.9% share.
Ohio's lawmakers boosted the state's tax on gross sports betting revenue from 10% to 20% last summer. The majority of sports betting income is allocated to public education, at 97.5%, with the remaining 2% for problem gambling programs, and 0.5% going to a veterans initiative.
Given the backdrop of the new sports betting market, the OCCC's decision to remove the pressure for sportsbooks to launch within a year of license issuance will likely help those struggling to navigate administrative hurdles.
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Source: www.casino.org
