Temporary Reprieve for Sports Betting Laws & Regulations

Temporary Reprieve for Sports Betting Operators in Ohio

By Lisa Spencer Senior Editor Updated: 09 December 2023

Lisa Spencer Senior Editor

As a Senior Editor at Betting.US, Lisa Spencer is a valuable member of our expert team. With a Master’s degree in Applied Mathematics, Lisa is adept in gambling theory and analyzing odds. She contributes by writing online sportsbook reviews and finding competitive markets to help our readers make an informed choice.

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It has been revealed that Ohio has set a new deadline of June 30, 2024, for sports betting operators that haven’t started their operations to begin, extending the original January 1 deadline.

The decision, made by the Ohio Casino Control Commission (OCCC), offers a lifeline to a variety of operators that have not yet started offering sports betting in the state. Failure to launch by mid-2024, however, could result in the revocation of their licenses.

Jessica Franks, a spokesperson for the commission, explained that this move aims to ensure active participation by license holders in the industry, which has already generated nearly $700 million in revenue in its first nine months. She said:

The commission wanted to ensure a level playing field.

This extension stems from a vote by the commission to prolong a year-long deadline initially given to licensees. The original deadline was set as January 1, 2024, marking one year since the start of legal sports betting in the state.

Use It or Lose It Regulations to Encourage Licensees

The OCCC’s decision is part of the state’s “use it or lose it” regulations. These regulations, along with the deadline, are designed to encourage licensees to fulfill their roles in advancing the industry. Ohio has benefited significantly from sports betting, with the state now claiming a 20 percent tax on the generated revenue, a figure that doubled from the original rate effective July 1.

Among the fifteen lagging behind in launching their operations are prominent sports teams like the Cleveland Cavaliers, Cincinnati Reds, and Cleveland Browns. The Cavaliers faced a setback when their partner, Fubo Gaming, ceased sportsbook operations, leaving them without a partner for sports betting apps.

Others include the Columbus Crew soccer franchise, Miami Valley Gaming racino, and various others holding different types of licenses, ranging from mobile betting to in-person sportsbooks and sports betting kiosks.

It is reported that the OCCC’s leniency is the result of various challenges faced by these entities, including issues beyond their control. These issues have hindered their ability to start operations as planned. The commission’s approach is to ensure fair competition among all licensees.

The current sports betting market in Ohio includes 19 sports betting apps and 16 retail betting sites. Operators like Rush Street Interactive (BetRivers), Tipico, and Bally’s are already active in mobile betting and also hold licenses for Type B retail betting, which are yet to be used.

Each Case to Be Reviewed Individually

For those operators that are still not active in the state, the extended deadline of June 30 is crucial. However, failure to ensure they are up and running by this date will not immediately result in the loss of their licenses and the $150,000 fee that they paid for them. There will still be some leeway for further extensions, but this will depend on the circumstances.

Officials from the OCCC, which is led by Executive Director Matt Schuler, said that the commission will review each case individually, with the possibility of further individual waiver extensions.