United States: Summary Of Ohio Sports Gaming Law
03 January 2022
Taft Stettinius & Hollister
To print this article, all you need is to be registered or login on Mondaq.com.
On Dec. 22, 2021, Governor Mike DeWine signed into law House Bill 29 (the “Law”), which legalizes and regulates retail and online/mobile sports gaming in Ohio. Below is an overview of the substantive terms of the Law.
- Licensing and Regulatory Oversight. The Law grants licensing and regulatory authority over all sports gaming in the state to the Ohio Casino Control Commission (the “Commission“).
- Sports Gaming Licenses Authorized. The Law authorizes three types of sports gaming proprietor licenses – Type A, Type B, and Type C.
- Type A Sports Gaming Proprietor License (Type A License)
- A Type A License allows its holder to offer sports gaming via a computer website or mobile application.
- Initially, the Commission may issue up to 25 Type A Licenses. After issuance of 25 Type A Licenses, the Commission may issue additional Type A Licenses to eligible applicants who can demonstrate a market need for additional Type A License holders.
- To qualify for a Type A License, an applicant must either:
- Hold a Type B Sports Gaming Proprietor License; or
- Maintain an operational place of business in Ohio with multiple employees.
- Type B Sports Gaming Proprietor License (Type B License)
- A Type B License allows its holder to offer sports gaming at the licensee’s qualified sports gaming facility (i.e. retail or in-person wagering).
- The Commission may issue up to 40 Type B Licenses.
- To qualify for a Type B License, an applicant must conduct “significant economic activity in the county in which the sports gaming facility is to be located.”
- Each Type B License allows for sports gaming at one facility specified in the license.
- Type B sports gaming facilities are subject to the following location restrictions:
Number of Sports Gaming Facilities Permitted
No sports gaming facility may be located in the county except if the Commission determines that such county had at least 5,000,000 tourist visitors during the most recent documented calendar year. If so, then such county may have one sports gaming facility > 100,000 but Not more than one sports gaming facility may be located in the county, except that there may be two sports gaming facilities in the county if a video lottery sales agent (i.e. a racino) operates in the county. > 400,000 but Not more than three sports gaming facilities may be located in the county. > 800,000 Not more than five sports gaming facilities may be located in the county.
- Type C Sports Gaming Proprietor License (Type C License)
- A Type C License allows its holder to offer sports gaming through self-service or clerk-operated gaming terminals at one or more licensed type C sports gaming host facilities. Such facility is known as a host facility.
- The Commission may issue at least two and not more than 20 Type C Licenses; provided, if only one eligible person applies, the Commission shall issue only one Type C License.
- A Type C Licensee shall contract with the Ohio Lottery Commission to operate sports gaming on its behalf in exchange for a portion of the state’s proceeds from the sports gaming.
- A Type C Licensee may only offer the following types of wagers on sporting events as approved by the Commission:
- Spread wagers;
- Over-under wagers;
- Moneyline wagers; and
- Parlay wagers based on not more than four component wagers.
- Host facilities must hold a D-1, D-2, or D-5 liquor permit and a Type C sports gaming host facility license (a “Host Facility License“). The Commission shall issue a Host Facility License to any eligible Host Facility License applicant recommended by the Ohio Lottery Commission.
- A Type C licensee may install up to two kiosks at a single licensed host facility, with potential for additional kiosks at the Commission’s discretion.
- Each kiosk is limited to accepting no more than $700 in a calendar week from any individual player.
- A Type C licensee and host facility may enter into a written agreement specifying the terms of their relationship, including the sharing of the sports gaming proceeds. There is no statutorily mandated split.
- Type A Sports Gaming Proprietor License (Type A License)
- License Preferences. In issuing Type A and Type B Licenses, a preference will be given to applicants that are professional sports organizations, casino operators, and video lottery sales agents (i.e. racinos).1 Professional sports organizations include Ohio’s sports teams operating in the NFL, NHL, MLB, NBA, and MLS,2 as well as Muirfield Village Golf Club and the Mid-Ohio Sports Car Course.
- Other Licenses.
- Mobile Management Services Provider License. A Type A licensee may enter into a contract with a licensed mobile management services provider to provide online sports gaming services on behalf of the Type A licensee.
- Management Services Provider License. A Type B licensee may enter into a contract with a licensed management services provider to provide retail sports gaming services at Type B licensee’s sports gaming facility.
- Other (Mobile) Management Services Provider Requirements.
- Type A and Type B licensees are generally authorized to contract with one licensed (mobile) management services provider, as applicable, to offer sports gaming on the licensee’s behalf
- A mobile management services provider or management services provider license must be licensed by the Commission before it may enter into a contract with a Type A licensee or Type B licensee, as applicable.
- The Commission must approve any contract between a (mobile) management services provider and Type A licensee or Type B licensee, as applicable.
- A Type A licensee may contract with two mobile management services providers if the Type A licensee: (1) is a professional sports organization, casino operator, or video lottery sales agent (i.e. racino); and (2) demonstrates that the second contract would generate an incremental economic benefit to the state without preventing another Type A proprietor from securing a contract with a mobile management services provider. [Note: This suggests that preferred Type A licensees could be permitted to operate up to two ‘skins.’]
- Each mobile management services provider license and management services provider license entitles the holder to contract with one Type A licensee or Type B licensee, respectively.
- The Law requires the Commission to adopt a rule setting a maximum number of mobile management services provider licenses and management services provider licenses a person may hold at any one time.
- Type C licensees are not permitted to contract with a mobile management services provider or a management services provider to offer sports gaming on behalf of such Type C licensee.
1 Currently, four casino operators and 11 video lottery sales agents (racinos) operate in the State of Ohio.
2 Currently, eight professional sports organizations are in the state – Cincinnati Bengals (NFL), Cleveland Browns (NFL), Cincinnati Reds (MLB), Cleveland Indians (MLB), Columbus Blue Jackets (NHL), Columbus Crew (MLS), FC Cincinnati (MLS), and Cleveland Cavaliers (NBA).
To read the full article click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
POPULAR ARTICLES ON: Media, Telecoms, IT, Entertainment from United States
Frankfurt Kurnit Klein & Selz
I love our blog. My colleagues are so smart and entertaining and really keep abreast of developments in the advertising law arena.