Ohio is yet another state that has jumped into the sports betting bandwagon. This comes after Governor Mike DeWine finally signed into law a bill legalizing retail and online sports betting. Nonetheless, sports bettors still have to wait for a regulatory framework so that they can finally place their bets while in Ohio.
Despite the excitement surrounding the legalization of sports betting, there are a number of Ohioans who remain sceptical about what the future holds. Many fear that sports betting will come at a cost for families. However, studies have shown that sports betting can be beneficial to states and teams when regulated. Here is why;
Ohio sports teams stand to gain
The Buckeye State is home to several professional teams in basketball, football, soccer, baseball, and hockey. Having a number of teams means you catch a game regardless of the season in Ohio. Sports betting will give Ohioans a chance to support their teams. Here they can choose to wager on the Cleveland Guardians, Cincinnati Reds, Cleveland Cavaliers, or the Columbus Blue Jackets.
Even so, professional teams will gain the most from revenue generated from the betting operators consuming the league’s media and products. In addition, teams will gain through sponsorship and advertising.
Partnerships with Ohio teams
The scramble for a place in Ohio sports betting has seen operators partner with Ohio teams. So far there are three partnerships between the professional teams and various sportsbooks. Fubo Gaming and The Cleveland Cavaliers is a partnership that will see the team become an official betting partner. This will give Cavs fans a chance to experience a more tailored betting experience.
Apart from this, the opening of a 3,000 sq. ft sports lounge will be another incentive of the partnership. This will serve as a great destination for sports fans where they will watch NBA games and other major sporting events.
The Cleveland Browns have also made a long-term agreement with Bally Bet. This will see the sportsbook establish a fan-first kind of betting experience for sports betting in Ohio. Also, the partnership will lead to the establishment of a lounge at FirstEnergy Stadium.
Increased revenue for the state
Sports betting is expected to bring in a new revenue stream for the state. Revenue expected from licencing of the casinos, racinos and mobile operators will sum up to $10 million. On the other hand, the state can expect up to $24 million from taxes by the end of the first year.
Compared to New York, Ohio will have the most considerate and affordable tax rate. Sportsbooks will have to pay a tax rate of 10% compared to New York’s 51%. However, in contrast to the norm of paying taxes on a monthly basis, sportsbooks will have to pay their taxes daily.
In an interview, Governor DeWine explained that legalizing and regulating sports betting is a good move. This is because Ohioans are already betting in off-shore sites, hence the legalization will bring in some income to the state.
Public and K-12 education are expected to be the biggest beneficiaries of sports betting. This is because 98% of the revenue is will be allocated to the public education sector while the remaining 2% will be channelled to help problem gamblers in the state.
The sports betting industry will be massive in Ohio. With 25 online sportsbooks, 40 retail sportsbooks and several kiosks, residents can expect several employment opportunities that will be beneficial. New career opportunities will crop up in technology, customer service, trading in odd-making, marketing and risk management.
Thousands will be employed directly and indirectly in casinos and online casinos. This will help reduce unemployment and improve the living standards of these employees and their families.
The media is a perfect example of an industry that will gain immensely. This is because sportsbooks are poised to spend millions on advertising ads. With ads being one of the ways sportsbooks can grow their revenues, these companies will go up and beyond in creating the most convincing ads.
Apart from ads, publishers and online sites are can look forward to earning cash and affiliate commissions.
As Governor Mike DeWine stated, legalization and regulation are the only ways for both state and sports bettors to gain from sports betting. With legalization, the state can finally have new streams of revenue that were previously lost to off-shore sites. Moreover, regulation will enable the state to have a working framework that will help problem gamblers. Sports bettors can also enjoy a safe gambling environment.