Ohio Could Also Become Michigan Rival In Sports Betting

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In Toledo, Ohio, a small controversy arose recently when Michigan golfers were prohibited from crossing the state border for a round of golf.

At that time, Michigan Governor Gretchen Whitmer imposed a ban on golfing, while Ohio took measures to prevent the spread of COVID-19 by closing three Toledo courses to individuals from Michigan.

The rivalry between residents of Michigan and Ohio has been enduring and occasionally contentious.

As Ohio contemplates the introduction of legal sports gambling, the ongoing dispute may extend its influence to the sports betting industry.

The objective for Michigan sports betting revenue is to avoid replicating the current state of the Michigan vs. Ohio State football series in any rivalry.

Ohio considering legalized sports gambling

Last year, sports betting legislation was initially proposed, and among the states contemplating it is Ohio.

According to an article released on Saturday by Cincinnati.com, the measure is no longer considered a priority due to the widespread shutdowns caused by the coronavirus pandemic.

One of the two introduced bills, co-sponsored by State Rep. Brigid Kelly, has undergone nine hearings in the state’s House of Representatives. Meanwhile, the second bill is currently being reviewed in the Ohio Senate.

Both proposals would need to be approved by the committee before being presented to the entire congressional body for voting. Following that, they would also need to go through committee and full votes by the other legislative body, and ultimately be signed by Governor Mike DeWine.

Sticking points in the competing bills

According to Cincinnati.com, the most significant points of disagreement in the Buckeye State appear to revolve around college sports and the regulatory body.

The House bill incorporates a letter of opposition to college sports betting, signed by all 13 Division I college athletic directors.

The Ohio Lottery Commission would be granted regulatory control by the bill, whereas the Ohio Casino Control Commission would receive the same authority under the Senate bill.

State Rep. Dave Greenspan has co-sponsored Kelly’s bill in the House, which encompasses mobile betting and in-person wagering at casinos and racinos.

Looking around at Michigan’s borders

Indiana is the sole state among Michigan’s three bordering states to have legalized sports betting, while its nearby neighbors, Illinois and Pennsylvania, have also implemented this practice.

There is no scheduled legislation in Wisconsin this year regarding the issue, despite its proximity to Michigan’s Upper Peninsula.

ESPN.com recently identified Wisconsin, along with Idaho and Utah, as one of the three states that have not yet introduced any legislation last month.

In the meantime, Michigan casinos are facing increased border competition from establishments in Windsor, Ontario, situated across the Detroit River.

Since 1994, Caesars Windsor has been in operation and introduced sports betting in 2006. However, currently, only parlay-style betting is available at the establishment, although there are ongoing efforts to broaden the options to include single-event betting.

Border casinos have particular intrastate interests

In the future, casinos might engage in their own version of border wars.

The three Four Winds Casino establishments in southwest Michigan are already in competition with the Blue Chip Casino in Michigan City, located in northwest Indiana, as well as the fourth Four Winds location in South Bend.

Despite the legalization of sports betting, the Michigan casinos, including Four Winds, have not introduced this feature yet. While Blue Chip offers sports betting, Four Winds has not made any announcements regarding its plans to incorporate this form of gambling.

It takes approximately one hour to drive from Ohio’s Hollywood Casino Toledo to the trio of Detroit casinos, which include Greektown Casino-Hotel, MGM Grand Detroit, and MotorCity Casino.

Currently, Michigan has the advantage for prospective sports bettors due to the opening of retail sportsbooks in Detroit’s casinos in mid-March. The launch of mobile sports betting throughout the state is anticipated to take place in early 2021, with efforts from MGM officials to expedite the process.

Regional tax comparisons could be a guide

Critics are expressing concern over the newly implemented sports betting rules in Tennessee due to its unprecedented 10% hold requirement. This particular requirement has the potential to discourage operators from participating in the market.

When evaluating its tax rates, Ohio would closely monitor these developments and consider its neighboring states as well.

Indiana imposes a 9.5% tax on revenue, whereas Michigan levies an 8.4% tax on revenue, with an additional 3.25% for Detroit city taxes.

Sports betting is available in Ohio’s neighboring states, West Virginia and Pennsylvania. In West Virginia, the tax rate for sports betting is 10%, while in Pennsylvania, it is 36%.

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