Ongoing Hearings on Legalized Sports Betting in Ohio as Grocery Stores Push for a Share of the Revenues
Sports Betting Goes Live in Ohio
After years of deliberation and regulatory discussions, sports betting is now legal in Ohio. The state officially launched its sports betting market on January 1, 2023, under a regulatory framework established by House Bill 29 and subsequent legislation.
The Ohio sports betting market operates under a three-tier license system:
- Type A licenses are issued for online sportsbooks, with a limit of 25.
- Type B licenses are granted for retail establishments, with a limit of 33.
- Type C licenses are given for kiosks in liquor-licensed venues.
Notably, professional sports teams that meet certain qualifications receive priority when applying for licenses.
Key points discussed during the Ohio Senate Select Committee on Gaming hearings and related regulatory discussions include:
- Restrictions and Prohibitions: Political bets and player prop bets tied to college athletes are prohibited. Ohio regulators are currently considering banning so-called microbets, such as first-pitch wagers in MLB, due to concerns about the integrity of sports linked to ongoing investigations in Major League Baseball (e.g., involving Cleveland Guardians pitchers). Governor Mike DeWine has requested the Ohio Casino Control Commission review and remove player-specific microbets that focus on highly specific in-game player events.
- Taxation: Initially, the sports betting tax was set at 10%, later doubled to 20% in 2023 following HB 33. In early 2025, proposals to increase tax rates further to 40% were rejected.
- Revenue Allocation Suggestions: Senate Republicans proposed in mid-2025 that unclaimed sports betting funds be used to finance sports projects, including a new stadium for the Cleveland Browns.
- Ongoing Regulatory Development: The Ohio Casino Control Commission continues to establish rules for market operation and integrity, including engagement with major sports leagues to protect their interests regarding prop bets.
Ohio residents can now place legal sports bets, with grocery stores potentially becoming part of the sports gaming system, similar to existing lottery operations. The process toward legalizing sports betting in Ohio faced several stumbling blocks, including a partisan battle over COVID-19 and different bills passed by the Assembly and Senate. However, the state has now established a regulated market with a focus on integrity safeguards, taxation policies, and active legislative and regulatory oversight.
[1] Ohio Legislative Service Commission. (2023). House Bill 29. Retrieved from https://www.ohiolegislature.gov/legislation/legislation-summary?id=GA134-HB-29 [2] Ohio Legislative Service Commission. (2023). Substitute House Bill 33. Retrieved from https://www.ohiolegislature.gov/legislation/legislation-summary?id=GA134-HB-33 [3] Ohio Casino Control Commission. (2023). Sports Wagering in Ohio. Retrieved from https://occc.ohio.gov/sports-wagering-in-ohio/
- Ohio residents, with the launch of the sports betting market, can now engage in legal sports-betting activities, with grocery stores potentially entering the sports gaming system, similar to existing lottery operations.
- Under the three-tier license system in Ohio, investors can apply for Type A licenses to operate online sportsbooks, Type B licenses for retail establishments, or Type C licenses for kiosks in liquor-licensed venues.
- During the Ohio Senate Select Committee on Gaming hearings, there was a discussion on restricting certain types of bets, such as player prop bets tied to college athletes and so-called 'microbets' like first-pitch wagers in MLB, due to concerns about their impact on sports integrity.
