Ohio Regulators Evaluating “Use or Lose” Sports Betting License Rule

• The Ohio Casino Control Commission is proposing an amendment to its sports betting licensing system
• Type A, B, and C license holders may be affected by this new rule
• If approved, license holders and operators who have not launched sports betting during their license term will not be eligible for renewal

If you don’t use it you may be losing it in Ohio.

The Ohio Casino Control Commission notified its stakeholders late last week that it is proposing an amendment to the state’s sports betting licensing system that would disallow license holders to reapply for a license if they have not launched sports betting during their license term.

The commission is accepting formal written comments on the amendments until Tuesday, May 7, at 5 p.m.

More Flexibility to Revoke Licenses

The Ohio Casino Control Commission has proposed the following amendment for its type-A, type-B, and type-C sports betting license holders:

“A type A (B or C) sports gaming proprietor may not apply to renew its license if it did not actively offer sports gaming to the economic benefit of the state under the license during the preceding license term and must wait a minimum of one year from the expiration of the license before seeking another license.”

The same amendment will be applicable to management service providers (sports betting operators) that have not launched sports betting in the state during its term.

The commission noted in its proposed amendment that it will allow greater flexibility to regulators to determine whether or not to revoke a sports betting license.

“The Ohio Casino Control Commission is proposing amendments to Ohio Adm. Code 3775-4-02 through 3775-4-06. The scope of the amendments are to address the ‘use or lose’ requirements in R.C. 3775.02 for Type-A, -B and -C Proprietors, Management Services Providers, and Mobile Management Services Providers, by providing greater flexibility to the Executive Director up to the length of the license period in determining whether to revoke a sports gaming license.”

Several License Holders Have Yet to Launch Sports Betting

Ohio has three different sports betting license types; type A (online sports betting), type B (retail sports betting), and type C (retail sports betting kiosks). The Ohio Casino Control Commission has awarded 22 type-A licenses, 23 type-B licenses, and seven type-C licenses.

Currently, out of the 22 type A licenses, only three haven’t yet launched sports betting in the state. The following license holders (and their sports betting operating partners) have yet to launch in Ohio:

• JACK Thistledown Racino, LLC (WynnBET – Ceased operation)
• The Cincinnati Reds (Underdog Sports Wagering)
• Cleveland Cavaliers (No partnership noted)

The Cavaliers had originally partnered with Fubo Sportsbook, but the company ceased operations in October 2022.

Out of the 22 type-B retail license holders, seven have yet to launch in the state. The following holders (and their partners) have yet to launch:

• Pro Football Hall of Fame Village (No partner listed)
• Cleveland Browns (Bally’s)
• Murfield Village Golf Club (No partner listed)
• SPIRE Institute (Out the Gate, Inc.)
• Phantom Fireworks (No partner listed)
• Lori’s Roadhouse (No partner listed)
• Crew SC Stadium Company (Tipico Ohio)

All type-C license holders are currently offering kiosk sports betting in the state.