Some Ohio casinos could be left out of the sports betting market

If the Ohio sports betting bill is approved as it is, certain casinos interested in opening sportsbooks in the state’s most populous counties would be left out, reports Saturday Tradition.

The bill, which was approved on June 16 by the Senate and sent to the House for consideration, gives preference to the state’s professional sports teams if they wish to apply for a Type A or Type B sports betting license. The bill also puts limits on the amount of Type B licenses, those for brick-and-mortar sportsbooks, in Ohio counties by population. This would likely shut out existing casinos from Type B licenses if professional sports franchises are given preference.

Daniel Reinhard, Senior Vice President of Governmental Affairs for JACK Entertainment, said that shutting gambling companies out with an artificial cap in these counties, which are also the state’s most populous, does not make sense. “We’re going work very hard in the House, and we’ll continue to work with the Senate, to work through this particular issue. But as the bill stands today we cannot support it,” he said.

The bill sets limits on the number of Type B licenses for counties with populations greater than 100,000. Counties with 100,000 to 500,000 shall have no more than 1 Type B license, counties with populations between 500,000 and 1 million shall have no more than two Type B licenses and counties with populations of more than 1 million will have no more than three Type B licenses. All population figures were based on the 2010 U.S. census.

There are 11 casinos and racinos in the state eligible to apply for sports betting licenses. Many of these casinos are located in counties with professional sports teams and could potentially be shut out of sportsbook licenses if trumped by interested franchises.

JACK Entertainment currently has two casinos in Cuyahoga County, and the Cavaliers, Browns, and Indians are also in the county. All of those franchises have expressed interest and submitted testimony in favor of Ohio sports betting. If all of the franchises are awarded Type B licenses, the existing casinos would be shut out.

“It’s unfair to those businesses, and it’s extremely unfair to those Ohio employees who staff all those buildings and work in those buildings,” Reinhard commented, “Too much work has gone into the bill to scrap it, but it should be held over the summer to work through these license capping issues”. 

“I think they had a goal to get some geographic diversity in the state, I understand that, but the unintended consequence of shutting us out is just not something that will work for the gaming companies. We’ll continue to push hard and make that argument,” he said.

The original Senate bill introduced in early May excluded casinos and racinos altogether. An “omnibus” amendment added to the bill the day of the Senate vote prescribed the licensing limits and priority status for professional sports teams.

Co-sponsor Sen. Niraj Antani, a Miamisburg Republican, was critical of casino organizations in the state. The professional sports coalition also lobbied for a piece of the action.

The statement also pointed out there are sports books in development at or near sports venues in other states. “The professional sports teams are businesses just like other businesses,” Antani said. “They didn’t force their way into Ohio through a constitutional amendment. Casinos were lobbying very hard, lobbying more than anyone else. If they had their way, they would be the only ones in this bill.”

If signed into law, committee chairman State Senator Kirk Schuring (R) said the bill will go into effect this October and the state would begin accepting applications for sports betting licenses on Jan. 1, 2022, with the goal of awarding licenses no later than April 1, 2022.