Lawmakers debate who should benefit from sports betting

COLUMBUS — As Ohio lawmakers consider regulating sports betting nearly three years after the U.S. Supreme Court opened the door, businesses across the state are seeking to ensure that the state's four casinos and seven racetrack slots parlors won't be the only players. All of Ohio's neighbors, with the exception of Kentucky, have already moved to legalize and regulate wagering on the outcomes of games, point spreads, individual player statistics, and other elements of professional and collegiate sports. "[Casinos] know that the online platform and the mobile apps will capture anywhere from 90 to 95 percent of the market," said David Corey, executive vice president of the Bowling Centers Association of Ohio, representing 150 businesses and their 5,000 employees. "...Then they say they will capture another approximately 5 percent of the in-person betting at the casinos and racinos," he said. "So all we're really asking for is 5 percent of the pie here. That's why this is so ludicrous. They won't even let the lottery and small businesses...have 5 percent of the market." Lawmakers are working again to reach agreement on how to proceed with sports betting after failing to do so last session. Much of the debate has been over whether sports betting should be regulated by the Ohio Casino Control Commission — which watches over Las Vegas-style casinos in Toledo, Columbus, Cleveland, and Cincinnati — or the Ohio Lottery Commission — which regulates racetracks' slots parlors and retail Keno, lottery, and multistate lotteries via retail outlets. Profits from the lottery commission generally go to K-12 education while casino tax revenue is distributed among schools, host cities, counties, and horse-racing purses. "If popular sports betting is allowed only at casinos, Ohio lottery profits would most likely decline, and schools would have to fight even harder for adequate funding," said William Phillis, executive director of the Ohio Coalition for Equity and Adequacy of School Funding. Lawmakers are debating whether to limit sports betting to the casinos and racinos while existing businesses that offer lottery products — retail stores, bars, restaurants, and veterans and fraternity organizations — argue this should be an extension of that business. Rep. Brigid Kelly (D., Cincinnati) is preparing to introduce a new bill, a variation on one that passed the House last session but stalled in the Senate. The new bill would regulate sports betting through the casino commission. A state tax rate of 8 percent had been proposed in the prior version. The Senate Select Committee on Gaming, meanwhile, has been holding general hearings on what such a bill should look like. Eric Schippers, a senior vice president for Penn National Gaming, recently told the committee that "it is critical that the operation of retail and mobile sports betting be limited to existing licensed gaming operators, who have invested billions in economic development in Ohio, and our designated skin partners." By "skin partners," he meant online sportsbook licenses tethered to casinos or racinos. Penn holds a 35 percent stake in Barstool Sports that delivers online original content. It has launched Barstool Sportsbook apps in Michigan and Pennsylvania. Penn National operates four of Ohio's 11 major gambling facilities — Hollywood Casinos in Toledo and Columbus as well as racinos in Dayton and the Mahoning Valley. It also operates in neighboring Michigan and Pennsylvania. "We believe allowing two or three skins per licensee in Ohio would mean far more upfront license fees and revenues to the state," Schippers said. He said the casinos and racinos are tightly regulated and required to undergo extensive federal anti-money laundering training. "Operating such a complex security system is expensive and extremely labor intensive," he said. "We spend millions of dollars annually on surveillance equipment, surveillance personnel, and security officers at each of our properties to maintain a safe and secure environment for our customers." Legal sports betting is not expected to be a huge financial windfall for the state, measuring in perhaps the mid-tens of millions a year. But Corey said it could be a boost to small businesses like bowling alleys where customers could come in to place bets and then possibly buy a beer or meal or bowl between professional and college games. "I can't imagine a more even and fair approach than to structure sports gaming through the Ohio Lottery," said Lima Mayor David Berger, a Democrat. While both Republican legislative leaders hail from his backyard, the Democratic mayor said he has not discussed this issue yet with House Speaker Bob Cupp or Senate President Matt Huffman. ___ (c)2021 The Blade (Toledo, Ohio) Visit The Blade (Toledo, Ohio) at www.toledoblade.com Distributed by Tribune Content Agency, LLC.