Ohio's big gamble
Jan. 1—LIMA — It's official: Ohioans can legally bet on sporting events as of midnight Sunday, and industry analysts expect Ohioans to spend billions of dollars doing just that in 2023.
"Ohio will be the most wide-open sports betting market we've seen in North America outside of the province of Ontario in Canada," said Christopher Boan, an assistant analyst for BetOhio.com.
A year ago, Ohio Gov. Mike DeWine signed legislation allowing sports gambling — a move made possible by a 2018 U.S. Supreme Court decision striking down a federal ban on states legalizing sports wagering. Ohio is joining more than 30 other states where fans can bet on sports.
The legislation creates three types of licenses that will be overseen by the state's Casino Control Commission. Those licenses govern mobile wagering such as on a phone app; gambling in sportsbooks run by casinos, racinos and professional sport teams; and bars, restaurants and other retail sites with self-service gaming kiosks.
Boan estimates that Ohio could see as much as $8.8 billion wagered in its first year of sports betting, or an average of $747 per resident, which would make Ohio the second-most lucrative sports betting market in the country behind New York state.
"This will be unprecedented," said Boan, who used Arizona as a model for his projections. That state saw $5.4 billion in wagers its first year.
Mobile dominates betting market
While Ohio is home to six professional sports teams and dozens of popular collegiate teams, the accessibility of mobile betting could be a key factor determining how lucrative the industry becomes here.
States where mobile and in-person sports betting are legal "are raking in a lot more money off the bat" than those that opted for retail betting only, Boan said, noting that in-person betting accounts for about 2% of the total handle, or the amount wagered before taxes and payouts.
The reason is simple: "A lot of people are more comfortable betting on their phones," he said.
Still, Ohio's casinos, racinos and professional sports teams are planning their own in-person sportsbooks.
Hundreds of grocery stores, gas stations, sports bars and bowling alleys from across the state have also been approved to operate sports gaming kiosks. The closest of those can be found in the lounge at Westgate Entertainment Center.
The hope, Westgate co-owner Andy Johnston said, is that some customers will linger or stop by to watch the game and place a few bets.
AIM Media Midwest, parent company of The Lima News, partnered with FanDuel Sportsbook for a sports betting website, AIMSportsBets.com.
Contribution to 'problem gambling'?
One in four sports bettors were considered problem gamblers or at risk of developing a gambling disorder as recently as 2017, according to a survey by the Ohio Department of Mental Health and Addiction Services.
The survey found that the risk of developing a gambling disorder while betting on sports was roughly equivalent to that of gambling at a casino, but problem gamblers generally wagered more at casinos than they did on sporting events.
Mobile applications will present a unique challenge, as they make gambling easier, said Dr. Joshua Grubbs, a psychology professor who studies gambling disorders at Bowling Green State University.
Still, Grubbs does not anticipate a sudden, dramatic change in gambling disorder diagnoses because of sports betting.
"The issue is that we are already struggling to meet the needs of people that currently have a gambling disorder," Grubbs said, noting that gambling disorders present a higher risk of suicide than many substance-use disorders.
"If you find yourself trying to hide it from somebody, you find yourself chasing your losses, those are pretty good indicators that something's wrong, and it's probably time to reach out to the Problem Gambling Hotline in Ohio or reach out to a mental health professional," Grubbs said.
Contact the Ohio Problem Gambling Helpline at 800-589-9966, 1-800-GAMBLER or visit the Problem Gambling Network of Ohio online at pgnohio.org.
Grubb added, "The fortunate thing is treatment works."
NEED HELP?
Contacat the Ohio Problem Gambling Helpline at 800-589-9966, 1-800-GAMBLER or visit the Problem Gambling Network of Ohio online at pgnohio.org.
KEY QUESTIONS
The state's Legislative Service Commission has estimated that sports betting will eventually become a multibillion-dollar industry in Ohio.
When does this start?
It begins as soon as the clock hits midnight after New Year's Eve. The Hard Rock Sportsbook in Cincinnati has invited Pete Rose to place the first legal bet there. Rose agreed to a lifetime ban from baseball in 1989 after an investigation found he placed numerous bets on the Reds while playing for and managing the team.
Where can people place bets?
Adults age 21 and older who are physically in the state will be able to place bets just about anywhere at any time. Most bets will be made through sports gaming apps on phones. Casinos and racinos are opening sportsbooks where you can make a bet and watch games. Pro sports teams and the Football Hall of Fame in Canton also are making plans to open sportsbooks. Gaming kiosks will be set up around the state in hundreds of licensed bars, restaurants, bowling alleys and grocery stores too.
While the biggest sports betting apps are expected to take wagers immediately, some of the sportsbooks and kiosks will delay their starts, so bettors may want to check before going. Kroger, the country's biggest traditional grocery chain, is delaying opening kiosks in its 42 licensed stores until well after the beginning of the year. The Ohio Casino Control Commission has said 16 companies would be ready to offer online betting on Jan 1.
Where and how will betting kiosks operate?
The Ohio Lottery Commission will oversee the rules and operation of the kiosks and plans to have a list of locations. The kiosks will have instructions for players and be limited to taking specific wagers: bets on point spreads, over-under, money lines and parlays.
What wagers are allowed?
Pro sports in the U.S., college sports, some international sports and even esports. People can also bet on auto racing, Olympic events and professional golf and tennis. But there's no wagering allowed on high school games, pre-recorded events or some prop bets, such as whether a certain player will be injured or how many penalties or timeouts are called.
Will winnings be taxed?
You bet. How much will depend on how much the bettor makes in a year. Online sportsbooks will track a person's winnings. If you win big, it's likely that you'll be sent a tax form. The IRS requires you to report gambling wins as income. Meanwhile, operators will pay a 10% tax on net revenue to help fund K-12 education and problem gambling programs.
—Associated Press
GAMING KIOSKS IN THE REGION
Westgate Lanes, 721 N. Cable Road, Lima
Southgate Lanes, 9700 N. Dixie Highway, Bluffton
Car-E-It Party Shop, 1206 E. Main St., Ottawa
Lucky's Tavern and Grill, 221 Crystal Ave., Findlay
Fricker's Findlay, 1410 W. Main Cross St., Findlay
Fricker's Van Wert, 735 Fox Road, Van Wert
Olympic Bowling Lanes, 430 W. Ervin Road, Van Wert
Astro Lanes, 1113 Apollo Drive, Wapakoneta
TP Lanes, 300 E. Lake Ave., Bellefontaine
Source: Ohio Lottery Commission
The Associated Press contributed to this story.
