When the first wagers were taken in Ohio in January 2023, there were 16 online sports betting apps. Shortly after, it grew to 19. Now that number stands at 16. Over the past few months, more and more “Tier 2” sports betting companies have ceased their operations in Ohio.
December 2023 marked the end of the first full year of legal sports betting in Ohio. According to the Ohio Casino Control Commission Report, Ohioans wagered more than $7.67 billion in the first-year sports betting was legal in the Buckeye State with $7.44 billion of that coming via mobile betting apps alone. [1]
However, over the past few months, four sportsbooks have ceased their operations in Ohio – Tipico, Betfred, Betway, and Superbook. [2] These closures are no surprise. For example, in October 2023, Tipico, Betfred, Betway, and Superbook accounted for just 1.15% of the $725 million wagered in bets. [3]
But what’s next for the smaller online sportsbooks? Are they too going to close by the end of the NFL season? Are they going to offer crazy promotions in an effort to steal customers from the likes of the industry’s large market leaders? If made legal, the answer may be iGaming and iCasino.
As of Summer 2024, lawmakers in Ohio are considering the idea of iGaming and iCasino. Several members of the Ohio House of Representatives met as recently as July 12, 2024, to discuss the issue. As it stands, iGaming and iLottery are still illegal in Ohio, but that could soon change.
Simply put, iCasino is casino gambling, such as slots and table games, available on personal devices. iCasino/iGaming is currently legal in eight states, and Ohio appears poised to become the ninth. [4] iCasino/iGaming is currently available and legal in Connecticut, Delaware, Michigan, New Jersey, Nevada (poker only), Pennsylvania, Rhode Island, and West Virginia. Michigan, Pennsylvania, and New Jersey (the big three) each generated over $1.7 billion in taxable revenue through their combination of sports betting and iGaming and iLottery. [5] According to the Legislative Service Commission, if iGaming and iLottery were legalized in Ohio, the State could expect to generate an additional $500-600 million in annual tax revenue.
With the surge in taxable revenue for the state, Ohio stands at the threshold of a new era in iGaming and iLottery.
Flannery | Georgalis has a team of attorneys experienced in the highly regulated gaming industry and will continue to monitor the legality of iGaming and iLottery in the State of Ohio.
The Report of the Study Commission on the Future of Gaming in Ohio can be found here. [6]
[1] Ohio Totals $7.67 Billion Handle In First Year Of Sports Betting (sportshandle.com)
[2] Why Smaller Sportsbooks Are Leaving Ohio Market (betohio.com)
[3] December 2023 Ohio Sports Gaming Revenue Report.pdf
[4] Where Are Online Casinos Legal? Tracking All 50 States (actionnetwork.com)
[5] Study Commission on the Future of Gaming in Ohio Committee Meeting – July 12, 2024, | Ohio House of Representatives
[6] Study Commission on the Future of Gaming in Ohio Committee Meeting – July 12, 2024, | Ohio House of Representatives