Ohio Senate moves toward legal sports betting

Jun. 16—COLUMBUS — The Ohio Senate on Wednesday walked through the door opened by the U.S. Supreme Court three years ago, casting the first vote to join nearly 30 other states in legalizing betting on everything from the outcomes and point spreads of professional and collegiate games to individual player statistics.

The chamber also approved a separate bill to allow collegiate athletes to benefit financially from the use of their names, images, or likenesses without losing their amateur status or scholarships.

Both measures head for the House of Representatives.

Senate Bill 176, which passed 30-2, would potentially deal professional sports teams, casinos, racetrack slots parlors, veterans' organizations, fraternal lodges, and some bars in to a mix of new legal gaming options. It allows for a mix of brick-and-mortar facilities, online and mobile betting apps, and e-bingo.

"In a very, very divisive time in our society, sports is one of the few things that unite us," state Sen. Niraj Antani (R., Miamisburg), a bill sponsor, said. "And so if this bill brings a little more excitement to Ohioans watching a soccer game or a little more joy to fans watching a hockey game, then I think it's worth it."

The U.S. Supreme Court ruled in 2018 that states outside Nevada could allow legal sports betting, but Ohio has been slow to develop a plan as half the country, including most neighboring states, jumped in.

Ohio would tax the net revenue at 10 percent, generating roughly $20 million a year with 98 percent of proceeds going to primary and secondary education and the remaining 2 percent dedicated to gambling-addiction programs.

Assuming all goes smoothly and is not derailed by litigation, the first bets could be placed as soon as April 1.

The bill would allow up to 25 new Type A licenses for online and mobile sports betting, through which most sports wagers are expected to be made. Currently, there are 11 Type A licensees in Ohio — the voter-approved Las Vegas-style casinos in Toledo, Cleveland, Columbus, and Cincinnati, and seven racetrack slots parlors operated as extensions of the state lottery.

While these existing facilities would be seen as having an advantage going in, they would not be guaranteed a license for mobile betting and could get competition from out-of-state entities. The state licenses would cost $1 million for the first year and $500,000 for the second and third.

The facilities could partner with online bookmakers like Draft Kings and Barstool. Penn National Gaming, which owns Toledo's Hollywood Casino, has a relationship with Barstool.

The bill would also allow for up to 33 Type B licenses for bricks-and-mortar betting operations — essentially sports bars or other areas with big-screen televisions where bets could be physically placed over a beer and burger. Professional sports teams and major events would get priority for a limited number of licenses distributed according to county population.

Physical and mobile operations would be overseen by the Ohio Casino Control Commission.

While he voted for the bill, state Sen. Kenny Yuko (D., Richmond Heights), the chamber's Democratic leader, worried that it gives preference to professional sports teams and events. He said he fears it could shut out local casinos and racinos where gambling already takes place.

"The very same people who brought so much for Ohio, who shared that money with all 88 counties, who have done so much for our schools, we're kind of saying we can't help you," he said. "The bottom line is the very casinos that brought us here to having this conversation are kind of being forced out."

He said he hopes the issue could be addressed in the House.

A late addition to the bill would create up to 20 Type C licenses through which bars and restaurants with liquor licenses could pay $6,000 for licenses for up to two betting kiosks each. The vendors supplying those kiosks would pay a $100,000 application fee.

The bill would legalize so-called "e-bingo" games at veterans' halls and fraternal organizations. The up to 10 machines each would be extensions of existing bingo and charitable gaming. Supporters insist these would be regulated to ensure they aren't just another form of slot machine.

All of northwest Ohio's delegation supported the bill.

The Fair Gaming Coalition of Ohio — a group of bars, bowling alleys, other businesses that sell lottery products, and some K-12 education advocates — have fought for a much bigger piece of the pie than the Senate vision would allow.

"The intent of the Bill Seitz-Kirk Schuring bill is to make it appear as if sports betting would help small businesses, but structure it in a way that ensures they never get to participate and discourages them from participating," it said in a statement that referred to the Cincinnati state representative and Canton senator, respectively, who've led the way in developing the bill.

"We look forward to working with House leaders and Gov. Mike DeWine to craft a new version that is fair and ethical and helps Ohio finally achieve a constitutional school-funding formula," the coalition said.

The athlete marketing bill, Senate Bill 187, passed unanimously. It prevents public and private colleges and universities or athletic conferences from barring athletes from competition or undermining their eligibility for scholarships because they benefit financially from autograph signings, advertising, or other commercial ventures.