Legal sports gambling has become a large revenue source for Ohio, but has also created a new set of challenges for the state.

Why it matters: The state's embrace of sports gambling in all its forms has paid off handsomely for its tax coffers.

State of play: Axios reviewed records and spoke to team officials, a top regulator and a problem gambling nonprofit for a comprehensive look at sports betting since the 2023 launch.

The big picture: We're far from alone — 38 states and D.C. legalized sports gambling as of February, each with different laws and restrictions.

Flashback: The 2009 legalization and 2012 rollout of casinos gave Ohio something of a blueprint, but this was even more complex.

• "Compared to standing up sports gambling, that was a walk in the park," Matt Schuler, the Ohio Casino Control Commission's executive director, says.

How it works: Ohio issues operating licenses for mobile apps and establishments like casinos, plus betting kiosks at small businesses.

The fine print: In addition, Ohio restricts the type of bets and how sportsbooks can market themselves.

• You can't bet on random events like coin flips or on player-specific prop bets for college sports.

Friction point: Major sportsbooks like DraftKings and Barstool have paid fines for breaking rules.

• "It was a bumpy start," Schuler says. "Sometimes, in new jurisdictions, operators will kind of push on the regulator to see how far they can go."

Follow the money: Ohioans wagered over $17.5 billion through the first 25 months of legal betting.

• That generated over $1.8 billion in revenue for sportsbooks and $330 million in state tax revenue.
• Nearly all of that money goes to the state's General Revenue Fund for schools.

What we're watching: The state takes a 20% cut of all taxable revenue.

• Gov. Mike DeWine wants to double it, but faces opposition.

Go deeper

The rise of sports betting has coincided with a statewide explosion of problem gamblers.

Why it matters: Gambling addiction can be as crippling as drug addiction, and Ohio invests 2% of its sports betting tax proceeds toward combatting it.

How it works: Nonprofit Problem Gambling Network of Ohio promotes resources like the problem gambling helpline, gamblers anonymous meeting locator and financial counseling.

• It also offers services for gamblers to self-ban themselves from casinos and betting websites, and launched the Ohio Gambling Telehealth Network.
• The state has its own responsible gambling initiative.

State of play: PGNO's leader sees shifts in how people become addicted.

Threat level: Slot machines have historically been the game most associated with addiction risk, executive director Derek Longmeier says, but mobile sports betting is even riskier.

• "What makes slot machines so addictive is how many repetitions you can have within a short amount of time," he says. "Now, you can do that … 24/7 in the palm of your hand."

Between the lines: Sports gambling hasn't been legal here long enough for a comprehensive study on its addiction impact, but warning signs already existed.

• Around 6% of Ohioans were at-risk or problem gamblers in 2012 when casinos first opened.
• By 2022, it was 20%.

Flashback: PGNO's growth during Longmeier's nine years at the helm demonstrates the magnitude of need.

• In 2016, his entire program was funded by a $20,000 grant, he says. The 2025 budget — funded by state grants and contracts, donations and gambling tax revenue — is $3 million.

Keep reading

Legalization has flooded our market with in-person sportsbook concepts, but the vast majority of wagers are being placed online.

Why it matters: Ohio businesses that once fought for retail licenses are seeing only a sliver of bets placed, while hundreds of gambling kiosks around the state generate virtually no revenue.

By the numbers: Just 2.7% of all money wagered statewide is done in person, with 0.15% collectively bet at hundreds of licensed lottery kiosks — 43 in Columbus alone.

Reality check: Schuler, of the Casino Control Commission, tells Axios the state expected online bets to make up at least 90% of wagers but didn't anticipate such an extreme split.

• He says those with higher hopes were likely imagining "visions of brick-and-mortar (sportsbooks) in Vegas," that aren't a reality elsewhere.

Between the lines: Schuler says in-person sportsbooks are largely a product of gaming companies owning both casinos and online apps.

Case in point: Penn Gaming owns the local Hollywood Casino and the ESPN Bet app. It's rebranded the casino's former Barstool Sportsbook to ESPN Bet.

The bottom line: Returns for in-person sports betting might be low, but Schuler says retail gambling isn't a cost issue or problem for state regulators.

While sports leagues and gambling operators partner up, athletes and team staff must avoid betting at all costs.

Why it matters: League rules are in place to uphold the integrity of games, and punishment can be career-ending.

Threat level: Over just the last two years, an Alabama baseball coach, an NBA player and an MLB umpire have been fired or banned for alleged gambling infractions.

• Cincinnati Reds legend Pete Rose was famously banned for betting on baseball. Decades later, he placed one of Ohio's first legal sports bets.

How it works: Each league has its own policies, but most ban participants from betting or disclosing private information.

• College players are banned from wagering on any NCAA sport or its professional equivalent.

Zoom in: Ohio State athletes are regularly provided educational materials about gambling, while Crew and Blue Jackets players receive education each year.

• There are no gambling kiosks in OSU, Blue Jackets or Crew arenas and spokespeople for all three tell Axios there are no plans for any.

Yes, but: For the professional teams, partnerships have blurred the lines.

• Fanatics is an official Blue Jackets partner with a sportsbook next door.
• The Crew partnered with short-lived sportsbook Tipico, featuring logos on jerseys and a "Tipico Sportsbook Club."

Share this story