A state legislative commission reviewing a recent report on gaming in Ohio expressed the possibility of bringing iGaming and iLottery to the Buckeye State along with several other topics included in the study.
Let’s take a closer look at the study and how it might impact top-rated sportsbooks.
Pros & Cons of iGaming
Mobile sports betting has been a winner in Ohio as evidenced by the $7.6 billion wagered after just over a year in operation while the sportsbooks claimed $935 million in taxable revenue. Of that figure, the state demanded its share and earmarked 98% of the taxable profits, or $193.8 million, for the state’s schools and scholarship programs.
The governor pushed for a doubling of the tax rate from 10% to 20% in July 2023, just seven months after mobile betting launched in the Buckeye State. That has proven to be a bonanza for the state’s tax coffers, much to the chagrin of the sportsbook operators. Yet, some believe raising the rate so early on was disingenuous to the sportsbooks that had invested heavily in advertising and promoting the product based on the previous 10% tax rate.
Regardless, the success of Ohio’s mobile sports betting industry is undeniable, which has led three Republican lawmakers on an 11-panel commission to articulate their thoughts included in a 350-page report titled The Study Commission on the Future of Gaming in Ohio. iGaming and iLottery were two popular subjects that generated “a lot of discussion” according to the report.
The Digital Dilemma
But with this news came concern from retail casinos and lottery outlets scattered across the state. Online casino gambling, or iGaming, has been seen as an existential threat to land-based casinos, while iLottery would make it far easier for the average customer to circumvent the retail outlets and purchase those tickets online.
The three lawmakers, Representatives Jay Edwards, Jeff LaRe, and Cindy Abrams wrote, “While we understand their hesitation to expand due to an uncertain impact, we believe that iLottery and iGaming could be a net benefit to the state of Ohio.
“Looking at other states who have implemented either or both iLottery and iGaming, we see significant increases to tax revenues generated with greater participation but also that in-person sales continued to increase. That can largely be contributed [sic] to more people participating in the market on their phones and becoming more comfortable/knowledgeable about doing it at a physical location.”
“These tax revenue benefits to the state and funding that could be provided to our K-12 education system cannot be overlooked,” they added.
College Player Prop Ban
Ohio, like many other states following the advice of the NCAA, has banned college player prop betting due to the purported deleterious effects on student-athletes, some of whom have been the target of abuse by bettors wagering on their individual performances.
When those performances don’t meet statistical expectations, there have been reports of harassment. Moreover, the case has been made that college athletes are more susceptible to bribes, forcing them to tank their performances as most don’t earn the millions of dollars that professional athletes make.
However, the three representatives addressed this as well stating, “Reports of harassment and potential threats are unacceptable at any stage of athletics. Such acts should be investigated and prosecuted accordingly. But the response from the OCCC (Ohio Casino Control Commission) to simply ban prop-betting on individual collegiate athletes looks to solve the problem without addressing the issue. We recommend that the OCCC’s policy be rescinded and prop betting on college athletes be restored.”
Whether the state’s lawmakers and the OCCC will change course on college prop betting is unclear, as is the state’s possible adoption of iGaming. But both subjects are in the conversation and will likely continue to be debated moving forward.
