Ohio Emerges as the Most Engaging State in the Sports Betting Landscape
Ohio's sports betting market is generating considerable interest and controversy, with the state recently raising the tax rate on operators from 10% to 20%. This bump in taxation, implemented just six months after the market's launch, has raised eyebrows in the industry.
Governor Mike DeWine, in a nod to a popular advertising slogan from the early 2000s, might have said, "When we raise taxes, we prefer it to be on sportsbook operators." Meanwhile, bet365, a leading sports betting company, and Fanatics, a well-known sports merchandise giant, view Ohio as an attractive testing ground for their sportsbooks.
However, the tax increase has sparked concerns among some industry analysts and operators. Stephen Krombolz, Senior Vice President of Business Development for Tipico, expressed this concern, stating that long-term investments in a market can be challenging when the goalposts change unexpectedly. Lloyd Danzig, Managing Partner of Sharp Alpha Advisors, went a step further, suggesting that the higher tax rate unfairly targets smaller operators.
Brendan Bussmann, Managing Partner of B Global, was similarly critical, stating that the tax increase could stifle the growth of local businesses while allowing offshore operators to continue thriving. Bussmann also expressed doubt that the tax increase would reduce advertising, which was the Governor's stated reason for raising the tax rate.
Despite these concerns, Fanatics and bet365 have chosen Ohio as a key testing ground for their sportsbooks. Fanatics launched softly in the state this year, and bet365 has made a significant push into the market, ranking third in handle in June.
The future of Ohio's sports betting market will be closely watched, particularly as the football season approaches. Industry participants will be keeping a close eye on advertising trends, the performance of newcomers like Fanatics, and the continued presence of behemoths like bet365. Only time will tell how these developments will shape the market and the state's revenue.
The Ohio Casino Control Commission has been actively involved, issuing fines and demonstrating a proactive approach to regulation. In particular, Fanatics faced scrutiny for a promotional offer deemed objectionable by the commission. The company promptly complied with the request to discontinue the promotion.
Located in the heart of the Midwest, Ohio offers a diverse sports landscape with numerous professional teams, making it an attractive market for sportsbook operators. The state's recent actions have positioned it as a market to watch, with potential implications for the broader sports betting industry.
- In light of the increased tax rate, Lloyd Danzig, Managing Partner of Sharp Alpha Advisors,commented that the higher tax rate may unfairly target smaller sports-betting operators.
- Despite the concerns over increased taxes, sports-betting companies like bet365 and Fanatics continue to view Ohio as an attractive testing ground for their sportsbooks.
- Given Ohio's diverse sports landscape and its recent actions, the state has been positioned as a market to watch with potential implications for the broader sports-betting industry.
