On December 9, Ohioan lawmakers voted to legalize sports betting. Governor Mike DeWine first has to sign the bill in order for it to become a law, but he’s expressed willingness to do so. In this article, we explore the legal battle to get this bill on the senate floor. We will also review the contents of the bill.
Background
It took many years for Ohioan lawmakers to be able to vote on a sports betting legalization bill. There were many reasons why they couldn’t do it any earlier. The main obstacle, however, wasn’t conservative opinion regarding sports betting, it was the federal government.
The Professional and Amateur Sports Protection Act of 1992 or PASPA banned sports betting nationwide, with the exception of a few states. For instance, Oregon, Delaware, and Montana were allowed to continue their sports lotteries, while Nevada could keep its sportsbooks. States which had legal casino industries also had a one-year window to apply for sports betting licenses.
In 2018, the Supreme Court overruled PASPA in the Murphy v. National Collegiate Athletic Association case. The justices ruled that PASPA violated the 10th Amendment of the U.S. Constitution. The 10th Amendment postulates that the federal government only has the powers granted to it by the Constitution; everything else is left to the states or the people.
Therefore, the federal government exceeded its powers by ratifying PASPA. The Supreme Court ruling consequently allowed for each state to legalize sports betting on its own. Many states such as New Jersey, Michigan, and Louisiana have already done so.
Three Long Years
Ever since that important Supreme Court case happened, Ohioan lawmakers have been trying to make sports betting legal in their state. The last three years have seen many attempts for a bill legalizing sports betting to be put on the House’s floor.
Just this summer, the proponents of this measure tried to add the legalization of sports betting to a bill regarding veterans’ ID cards. This idea was swiftly rejected by the House, which likely wanted to separate the two issues to see the genuine support for the measure.
There were other obstacles as well. The most obvious one is lawmakers and different organizations opposing legalization due to the harm it might cause to Ohioans. One chapter of the NAACP formally opposed the measure as they claim it would turn young people to gambling.
There have been issues even with people and groups agreeing with the measure. For instance, various organizations have been negotiating with lawmakers to include them in the legislating process and to reap more benefits.
In the end, Sen. Kirk Schuring, R-Canton, who is at the lead sponsor of the bill, said that it was pointless to keep arguing and negotiating as the state was only losing money in the process. He noted that Ohioans who want to bet can simply go to Indiana or Michigan. Indiana has added $412 million to its GDP since it legalized sports betting in 2019.
The Bill
The bill in question is called House Bill 29. The House passed it with 72 to 12 votes, while the Senate with 31 to 1. Both Democrats and Republicans are in favor of it. Although the bill is not yet a ratified law, it will most likely be signed by Gov. DeWine who said of sports betting legalization that “It’s time to do it.”
Now let’s talk about the contents of the bill. To begin with, the bill is set to legalize sports betting in brick-and-mortar sportsbooks, as well as online (websites and mobile apps). There is cap as to how many sportsbooks could operate in each county based on the size of its population. There could be outright sportsbooks, as well as kiosks bars and restaurants.
There are going to be three types of licenses – Type A, B, and C. Type A is for casinos, racinos and sports teams that would allow them to operate an online sports betting operation. There would be up to 25 Type A licenses and two “skins” for each operator. The first skin would cost $3 million and allows for one betting website and the accompanying mobile app. The second skin would cost $10 million.
Type B license is for brick-and-mortar stores for in-person betting. The fees would cost between $50,000 to 100,000. Finally, Type C license can be obtained by bars or restaurants that want to put sports kiosk on their property with a limit of $700 paid in winnings to an individual per week; clerks could, however, pay in cash to the customer.
These businesses are going to be taxed at 10%. Most of the tax revenue would go towards public and private schools, while the rest would be allocated to problem gambling services, as well as services for veterans.
Last but not least, you must be over the age of 21 to bet in Ohio. Once the bill comes to effect, Ohio would have until January 1 2023 to set up the whole operation in motion.