Ohio’s newly launched sports betting market has burst onto the scene, with more than $1 billion worth of bets placed in just one month. The initial figures suggest that Ohio’s sports betting industry could become a competitive market.
Eilers & Krejcik Gaming, a leading research firm in the gambling industry, predicted that Ohio will bring in around $845 million in tax revenue each year. However, analysts caution that it could take several years for the market to mature and for Ohio to reach this target.
1st Month of Sports Betting in Ohio
In January, the 14 retail locations and 16 online sportsbooks in Ohio generated revenue of $208.9 million. This figure doesn’t account for the $320 million in promotional credits awarded to bettors by online operators.
Ohio law currently prohibits sportsbooks from deducting promotional gaming credits from their taxable revenue. As a result, the state received $20.9 million based on the 10% tax lawmakers established.
The Ohio Lottery also released its first revenue report from sports betting kiosks installed in various bars, restaurants, and other qualifying establishments across the state. In January, the 772 kiosks took a total of $850,336 in bets, generating $116,040 in gross gaming revenue. The Ohio Lottery captured $28,376 of that revenue.
Despite the impressive start, it is still too early to make comparisons with other states’ sports betting markets. Analysts will need at least a year’s worth of data before they can analyze Ohioan’s betting habits thoroughly.
Leading Sportsbooks in Ohio
FanDuel and DraftKings Ohio sportsbook continued to the US sports betting scene, with a combined $838.2 million handle in Ohio. But Bet365 ($38.6M) and Barstool (45.9M) were also among the top five sports betting operators in the state. Caesars Sportsbook, on the other hand, came in sixth at $31.5 million.
One interesting observation from these numbers is that Bet365 relied most on promotional credits to drive traffic, with $16 million in credits and bonuses wagered representing 41.4% of its monthly handle. This was the highest ratio of any sports betting operator in Ohio.
In contrast, Caesars Ohio and Barstool were less reliant on promotional credits, as those made up less than 12% of their reported handle.
Online Dominates Ohio Sports Betting Market
When Ohio lawmakers passed sports betting legislation in December 2021, they included provisions for both retail and online sports betting. But with nearly 98% of the bets made online in January, it’s clear that Ohioans strongly prefer betting on sports from their phones and computers.
The dominance of online betting is not unique to Ohio. In fact, other states such as Pennsylvania and New Jersey have seen a similar trend. However, the success of online sports betting in Ohio highlights the importance of having a strong digital presence in today’s gambling industry.