Ohio Sports Betting Market Analysis
With the signature of Ohio Gov. Mike DeWine placed on the bill just before Christmas, Ohio is the latest state to join the ever-swelling ranks of legal sports betting jurisdictions. And with that, one of the most coveted states is off the board.
But just how strong a sports betting market will Ohio be? That’s a difficult question to answer, as the state has several factors working in its favor and against it.
It’s safe to say Ohio sports betting will be in the Top 10 when it eventually launches in early 2023. Still, cracking the Top 5 may not be in the cards for the Buckeye State, despite it having the fourth highest population of legal sports betting states, trailing only New York, Pennsylvania, and Illinois.
Here’s a look at the factors that will determine Ohio’s level of sports betting success.
Reasons Ohio Will Be a Strong Sports Betting State
Ohio may have legalized sports betting at the eleventh hour, but the state didn’t pass a lame duck. Ohio’s sports betting legislation is one of the best passed to date. It creates a competitive market with reasonable operator burdens, doesn’t impose unnecessary hurdles like in-person registration, and does a better job than most states on the responsible gambling front – a low bar for sure, but a bar Ohio easily clears.
Ohio will also use a synchronized launch, which means a glut of advertising in the leadup and at launch, as operators jockey for position in the market.
And then there are the state’s intangibles. With 11.7 million residents, Ohio is the seventh most populous state. Ohio bests New Jersey and Michigan and is just behind Pennsylvania and Illinois on population alone.
Ohio also boasts a slew of professional sports teams, with six franchises in the four major US sports – ranking it sixth in the nation in that category:
- Baseball (MLB): Cincinnati Reds and Cleveland Guardians
- Basketball (NBA): Cleveland Cavaliers
- Football (NFL): Cincinnati Bengals and Cleveland Browns
- Hockey (NHL): Columbus Blue Jackets
- Soccer (MLS): Columbus Crew and FC Cincinnati
Reasons Ohio Won’t Be a Strong Sports Betting State
The Buckeye State has a large population, but it ranks 34th in terms of median income, with a median household income of $56,700, well below the national average of $67,500. However, it should be noted that Michigan ranks 32nd and has been a sports betting success story.
And unlike some other states, Ohio is all but surrounded by other legal sports betting states, which means it won’t pull from border populations.
The Bottom Line
In terms of revenue, Ohio sports betting will likely look a lot like Michigan.
Ohio has the edge in population, with a 15% edge (11.7 million compared to 9.9 million).
The two states are similar economically, but the population edge Ohio has quickly evaporates when you account for Michigan’s online casino and poker industries, which allow the state to cross-sell sports betting to these players.
Overall, Ohio looks to be a good but not great sports betting market. That won’t improve when other big states like Florida, Texas, and California enter the fray. And then there are the smaller but economically advantaged states like Massachusetts waiting in the wings. When these states are online, Ohio could be battling to stay in the Top 10.
Steve Ruddock is the content director for BettingUSA and the Editor-in-Chief of Gaming Law Review.
Steve has covered the legal and legislative developments in the US gambling sector for more than a decade for online and print publications.
