Fifteen different entities yet to carry through on state-licensed plans to be involved in offering Ohio sports betting have been granted a reprieve until June 30 to do so.
After that, they could have their licenses revoked by the Ohio Casino Control Commission if they don’t launch.
That’s the result of a vote taken by the commission last week to extend a year-long deadline given to licensees to begin their operations, according to commission spokeswoman Jessica Franks. In most cases, the original deadline for startup would have been Jan. 1, 2024 — one year from the date when legal sports betting began in the state.
The OCCC approved the six-month waiver almost simultaneously with starting the process of fixing a drafting error in what are known as “use it or lose it” regulations. The regulations and deadline are designed to ensure that those who obtain sports gaming licenses in Ohio carry out their roles in furthering the industry, which in its first nine months generated nearly $700 million in revenue from betting.
The state now takes a 20% tax cut from that revenue, after having doubled the original rate effective July 1.
Reds, Cavs, and Browns among tardy 15 5d1r3f
Franks said the commission decided to give licensees another six months to launch because various factors, including some beyond their control, could have affected their ability to find suitable partners, undertake all other necessary steps, and begin by Jan. 1, 2024.
As an example, the Cleveland Cavaliers obtained a license to be involved in wagering done through sports gambling apps but found out only late in 2022 that partner Fubo Gaming was shuttering its sportsbook operations. The franchise has not announced a new partner.
“The commission wanted to ensure a level playing field” among all the licensees, Franks said.
There are currently 19 sports betting apps available to customers in Ohio under partnerships that sports teams or venues or casino/racino gaming operators have with companies that provide what is known as Type A mobile betting. The Cavs, Cincinnati Reds, and JACK Thistledown Racino are three entities with Type A proprietor licenses that have not yet been used, and they could lose those if they’re not active by June 30.
The Cleveland Browns, Hall of Fame Village in Canton, Columbus Crew soccer franchise, Miami Valley Gaming racino, Geneva Sports LLC, Phantom Fireworks Inc., and Lori Roadhouse all obtained Type B proprietor licenses to operate in-person sportsbooks but have yet to do so, jeopardizing those licenses. There are 16 retail betting sites currently.
Rush Street Interactive (Bally’s operate mobile betting in Ohio, but they also obtained management services provider licenses to be involved in Type B retail betting, and those are not in use and need to be by June 30. Out the Gate Inc. has the same Type B license as those three and also has less than eight months to start.
Lastly, Elys Gameboard Technologies has the same deadline to make use of its Type C proprietor license to distribute sports betting kiosks to bars, restaurants, and other enterprises taking part in that type of small-scale betting overseen by the Ohio Lottery Commission.
Franks said that if the 15 entities aren’t operational by June 30, they wouldn’t necessarily lose their licenses and the $150,000 fee they paid for them immediately. They would be reviewed on a case-by-case basis by Executive Director Matt Schuler and the commission’s staff, with further individual waiver extensions possible.
