Top 5 Reasons Ohio Sports Betting Market Will Be Among Largest in US

Ohio sports bettors have been waiting patiently for online sportsbooks to go live and the wait is finally over. As of Jan 1, 2023 online sports betting will be live and bettors can take advantage of some insane Ohio sportsbook promo codes from the top operators. 

As analysts take a look at the potential of this new betting market, many have high expectations that the Buckeye State will become one of the largest betting markets in the country. Let’s explore the top 5 reasons why Ohio bettors will be betting heavy in 2023.

11 Out of 16 Operators Will Be Live January 1, 2023

Even though it has been a long process to finally get a launch date for online betting in Ohio, it’s been a scramble for operators to get their licenses in time for launch. As of the writing of this article, there are 18 brands that will be going live on Jan 1st. 

As anyone would expect, all the top betting brands will be open for business: BetMGM Ohio, Caesars Sportsbook Ohio, PointsBet, WynnBET, DraftKings, FanDuel, Bet365, BetFred, Superbook, Tipico and Barstool. 

Brands like PlayUP, Parx, Underdog Sports, Fantatics, BetRivers, Unibet and Bally’s are still working towards their launch efforts but it does not look like they will make it by the Jan 1st launch date. 

Ohio Sports Betting Projections for 2023 

Analysts have high hopes that Ohio bettors will take full advantage of legal sports betting i in 2023, regardless of the possible nationwide recession. Projections range between $9 and $12 Billion USD in potential bets placed for the year taxable at 10% rate. 

Is this number realistic? With 12 million residents in Ohio, the numbers projected are conservative and could be easily exceeded. This could make the Buckeye State one of the largest markets in the country.

Ohio Created 3 Types of Betting Licenses

The state legislature was creative when legalizing betting. The idea was to give operators different opportunities to capitalize on sports betting in different settings therefore creating different licenses for each. That inspired type A, type B and type C licenses depending on the venue. 

Type A is online betting only. Operators that are focused on offering bettors their online platform either via their website or app will need to apply for this type of license in order have a legal sportsbook in Ohio. 

Brands such as BetMGM, Caesars Sportsbook, Fanduel and DraftKings fall under this category as their target is online betting and sports betting through their apps.

Type B covers casino in-person betting and betting at sports venues. PointsBet will be known as Hollywood Gaming at Mahorning Valley Race Course and MaximBet will be at Jack Cleveland Casino handling their sports betting offerings.

Type C covers betting kiosks in bars and restaurants and are ran by the state lottery. With College Football Bowls coming up, Super Bowl and NBA, these betting kiosks in bars and restaurants will be a big hit to make those last minute bets. 

Bars and restaurants will not only be the businesses that will be able to take advantage of these kiosks, gas stations, bowling alleys and grocery stores will have the ability to put in these kiosks to offer their customers online betting.

The State of Ohio Needs Tax Revenue

Ohio legislators took a wait and see approach as they saw how other states launched sports betting and how taxation was handled. Seeing the negative impact of a 51% tax rate for sportsbook operators in New York, Ohio took a more conservative approach and landed their tax rate at 10%. Their goal is to attract operators to the state and create another tax revenue stream that public education and youth sports programs can benefit from. 

Since football and basketbal will take 68% of all bets in the state, taxes should be rolling in pretty consistantly for at least 6 to 8 months out of the year. NHL and MLB will will cover the rest of the months.

Sportsbooks will be able to deduct promotional costs from the total taxation number in 2027 which is a silver linning for operators. 

Kentucky Sports Betting is Not Legal Yet

Usually states that legalize sports betting lean on surrounding states to attract out of state bettors. Kentucky sports bettors will be key as Ohio kicks off legal sports betting on Jan 1st. Projections are modest but during March Madness, the states expects to see an uptick in tourism from residents of Kentucky wanting to bet legally throughout the tournament.