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Ohio Okays Sports Betting, Plans to Issue Licences in 2022
By Jeff Osienya Dec 09, 2021 LegalityOhio’s legislature passed a bill to regulate in-person and online sports betting. Besides, betting on pro sports teams, esports betting, and wagering on college sports will also be allowed in the Buckeye State. Read on to discover what the bill entails.On Wednesday, December 8th, the Ohio state legislature passed HB 29 to regulate retail and online sports betting on professional and collegiate sports, alongside esports wagering. Following a delay of about four hours, the Conference Committee reported in favor of the bill in less than five minutes. From there, the Senate accepted the Conference’s report in under 10 minutes.
Later in the afternoon, the House okayed the measure to pass the baton to the office of Gov. Mike DeWine for final approval. The governor is expected to sign the bill into law in the coming days, especially since he has vocally been supporting the legalization of sports betting in the Buckeye State. His signature will culminate months of negotiations to steer Ohio into the next phase of sports and esports betting regulation – preparation for market launch.
Key Elements of Ohio’s Sports and Esports Betting Regulatory Framework
Under the just approved HB 29, the Ohio Casino Control Commission will be the oversight body responsible for supervising retail and online sports betting within state lines. The watchdog will have the mandate to award up to 25 Type A Sports Gaming Proprietor licenses (Type A) and 40 Type B Gaming Proprietor Licenses (Type B). Type A licenses will be awarded to online sports betting operators, whereas Type B licenses will be awarded to parties interested in offering retail sports betting in Ohio.
The legislators did not line out eligibility restrictions for the type of parties or entities who will receive any of the Type A or B licenses in HB 29. Still, the language requires the Commission to “give preference” to pro sporting organizations, brick-and-mortar casino operators, and racino operators. Meanwhile, according to the sports betting (online and retail) and esports regulation measure, factors that may affect the chances of an applicant’s license approval include aspects such as:
- Reputation
- Experience
- Financial integrity
- Nature of the current or intended physical presence of the applicant in Ohio
- Expenditures for physical infrastructure
Additionally, Type A license holders will be allowed to team up with “mobile management service providers,” i.e., operators of online betting platforms – who may run and manage online sports and esports betting operations on behalf of the licensees. Pro sports organizations, casinos operators, and racinos operators with Type A licenses will be allowed to subcontract up to two online betting platform operators. Any other Type A licensee will be restricted to partnering with only one mobile management service provider.
However, it’s vital no note that Type A licensees must fulfill two additional requirements if they are to receive approval for a second online betting platform operator, it has. For one, the licensee must prove that partnering with a second mobile management service provider will boost state revenue beyond the proceeds of the first one. Secondly, the agreement between the licensee and the second online betting platform operator will not prohibit another Type A license holder from securing a contract with the second platform operator.
And before partnering with an online betting platform operator, a Type A licensee will be required to acquire a Mobile Management Service Provider License from the Ohio Casino Control Commission. On top of that, the servers responsible for taking the online sports wagers must be securely located at a facility within the borders of Ohio state.
Further, HB 29 also requires that all Type A license holders must have a physical base of operations in the Buckeye State. To fulfill the condition of physical presence, a Type A licensee will have to choose one of two solutions follows:
- Offering retail sports betting as well, under a Type B license
- Have at least one physical place of business within state lines that employs multiple staffers regularly
What About the State Lottery’s Participation?
For sure, the newly approved sports betting bill in Ohio wouldn’t have been complete if there wasn’t a clause that lets the Ohio State Lottery have a taste of some of the action. Notably, HB 29 permits the State Lottery to accept sports wagers as part of its lottery program that serves the entire Buckeye State. But, of course, the Ohio State Lottery’s sports betting activity will still be under the oversight of the Ohio Casino Control Commission.
Moreover, under the sports betting regulation bill, Ohio’s Lottery has the permission to tale sports bets at clerk-operated or self-service kiosks at bars and restaurants. However, these bars and restaurants will have to acquire a Type C Sports Gaming Proprietor License from Buckeye State’s Casino Control Commission. These Type C licenses will be limited to 20.
As for the debut date for sports betting, HB 29 instructs that the Executive Director of the Commission must announce a designated state-wide launch date by January 1st, 2023. It is expected that licenses will be awarded sometime next year, and the official launch will take place in 2022 as well.
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