At long last, Ohio has joined the ranks of other states seeking to capitalize on the growing market for sports betting. In December, Governor Mike DeWine legalized sports betting in Ohio by signing House Bill 29 into law. This legislation will regulate sports betting in Ohio through sports gaming proprietors licensed by the Ohio Casino Control Commission (“OCCC”). Early reports suggest that Ohio could achieve nearly $1 billion in gaming revenue in the first year alone.
Come January 1, 2023 (or sooner), Ohioans will have access to sports betting online, at dedicated gaming facilities, and in the form of lottery sports gaming at bars and restaurants. Although it was initially expected that the OCCC would begin the licensure application process on April 1, 2022, rules governing the various licenses are still being proposed and finalized. The application process is currently expected to open in the summer/fall of 2022, but now is the time for businesses to evaluate whether they may qualify for a license and begin to prepare for the necessary submissions.
As mentioned above, Ohio will recognize three types of licenses to facilitate various sports betting opportunities:
- Type A Sports Gaming Proprietor – Takes bets through websites and mobile applications.
- Type B Sports Gaming Proprietor – Operates a dedicated retail sports gaming facility.
- Type C – Includes two sub-categories:
- Type C Sports Gaming Proprietor – Contracts with Sports Gaming Hosts to provide sports gaming through self-service or clerk-operated terminals at approved Type C host facilities.
- Type C Sports Gaming Host – Owner of a facility with a D-1, D-2, or D-5 liquor permit (i.e. bars and restaurants) that is approved by the OCCC to host self-service or clerk-operated terminals for sports gaming.
Type A and Type B licenses are limited and have hefty license fees associated with them. Although the same is true for Type C Sports Gaming Proprietors, becoming a Type C Sports Gaming Host is the most attainable and least expensive.
To become a Type C Sports Gaming Host there is a non-refundable license fee of $1,000 (compared to the $100,000 fee for a Type C Sports Gaming Proprietor). The associated license will be valid for a term of 3 years that can be renewed. Because the Type C licenses utilize a different method of “lottery sports gaming”, the Ohio Lottery Commission (“OLC”) has additional oversight and regulatory authority. Accordingly, there will be rules for Type C licenses from both the OCCC and OLC, which are still being proposed and finalized.
Given the lower cost of entry, there are naturally more restrictions under discussion for Type C Sports Gaming Hosts. For example, the current rules impose a limitation of two (2) sports gaming kiosks per licensed facility, with each kiosk being limited to accepting not more than $700 in a calendar week from any individual sports gaming participant. Even with these restrictions, a Type C Sports Gaming Host license still offers a bar/restaurant the opportunity to implement a potential new stream of revenue that has never been available here before, and overall, the implementation of legal sports betting in Ohio will open the door for a multitude of new revenue streams for individuals and businesses alike.
The Ohio Casino Control Commission will be accepting applications for Type-C Sports Gaming Hosts on July 15, 2022. The deadline to submit applications is August 15, 2022.
The attorneys in McCarthy Lebit’s Hospitality and Liquor Law practice group are continuing to stay apprised of developments relating to the rules and application process for sports betting in Ohio. We are available to assist with the upcoming application process, answer any questions, or discuss needs that your business may have. For more information or assistance, please reach out to request a consultation or visit Charles’ bio for his contact information to reach out to him directly.
