Ohio Faces a Tight Deadline to Pass a Sports Betting Bill in December

Two weeks after an election where states like Maryland and South Dakota finally okayed legal sports betting, Ohio has also shown its resolve towards making the sports betting dream come true. Last Wednesday, the Senate General Government and Agency Review Committee held the third hearing for Senate Bill 111, the sports betting draft legislation that has been lingering in Columbus, the capital of Ohio for over a year.

During the hearing, members of the committee spent a couple of minutes conferring about the bill, and at the end of the session, there wasn’t any opposing testimony filed. John Eklund, a Republican Senator of District 18, who is also the co-sponsor of the bill took the opportunity to give the committee a refresher of the steps that had been undertaken towards accomplishing the mission of regulating sports betting in the Buckeye State.

Strong Support from the Largest Gaming Stakeholders in the US

Owing to the hindrances of the ongoing Coronavirus pandemic, six supporters of the sports betting legalization bill, counting representatives of Penn National Gaming, FanDuel, DraftKings, MGM, Boyd Gaming, and iDEA Growth weren’t present for the hearing. Nevertheless, the six proponents of sports betting made it a point to submit written testimony to voice their support for the draft bill ahead of the Wednesday meeting.

Adam Suliman, the Vice President of Jack Entertainment, a company known for operating two of Ohio’s casinos was the only representative who was able to show up in person and give his testimony. Expressing his enthusiasm towards the prospects of regulation of sports betting in the state, Suliman said; 

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“We are excited about the prospect of adding physical sportsbooks and related amenities at our properties here in Ohio. We are preparing to make significant capital investments and create new jobs at our facilities. Our customers tell me regularly that they are looking forward to a day in the near future when they can wager legally on their favorite sporting event. It feels like we are very close to providing them with that opportunity, and for that, we are appreciative.”

Sports Betting in the Buckeye State Remains in a Stalemate

While Wednesday’s hearing appears to have been generally successful, it in fact does nothing for the process of moving the bill forward. Since the House overwhelmingly approved a bill for regulating sports betting in the state months ago in May, there has been trivial progress in the Senate. Ohio’s senate hasn’t made any effort towards taking up the House’s sports betting bill, HB 194, or deliberating on the Senate Bill that was facing the Wednesday hearing.

Lawmakers in the state haven’t agreed on a selection over several critical aspects of regulating sports betting in the state, including a gaming watchdog for the state and operator access. The current version of HB 194 tables the idea that the Ohio Lottery Commission would be fit as an oversight body, whereas the Senate’s SB 111 calls for the Ohio Casino Control Commission to be the state’s gaming Ombudsman.

Besides, legislators in the Buckeye State have also failed to see eye to eye over the number of acceptable licenses to be awarded and the entities that will be given the mandate to offer sportsbook services. As things stand right now, commercial casinos and racinos (hybrid racetracks) will possibly be allowed to take sports wagers, but there’s no clarity on the number of online operators that would be allowed to serve bettors or how many of them will be affiliated with land-based gaming facilities.   

Aside from the lack of consensus among lawmakers, it is also worrying to note that two of the primary sponsors of sports betting in Ohio failed their re-election bids in the November ballot. Senator Sean O’Brien, a Democrat of District 32, and Representative Dave Greenspan, a Republican of District 16 were ousted, whereas Eklund the last sponsor standing will be completing his 9-year term at the end of this year.

What Does This Mean for Sports Betting in Ohio?

All things considered, there’s still a slim chance for the legislature to cross the finish line. But then, if the current sports-betting proposals included in SB 111 and HB 194 fail to pull through by December, the Buckeye State will have to go back to square one with a fresh bill, and new sponsors in 2021 legislative sessions.

Right now, HB 194 proposes an 8% taxation rate and a 5-year license fee worth $100,000, and more importantly, there’s no provision for a mandate for official league data. The latest version of the House bill also slashed the number of licenses from three to two for each casino and racino operator in Ohio, implying that the state would have a total of 22 sportsbooks, 11 less than what the bill had initially proposed in September.