Despite the fact that sportsbooks aren’t yet allowed to operate in Ohio, the state is already making millions from license fees.
In the state of Ohio sports wagering will finally get the green light on the first day of January, however the state is already collecting massive amounts of cash from operators that are signing up for licenses.
The state has already collected nearly 10 million dollars in application fees, and is expecting to triple that number by the end of the year. After a successful application an operator will be required to pay a license fee, which will vary by the type of the license. Additionally, the operators will also be required to pay annual fees to keep their licenses valid, which could total up to 5 million dollars for the state.
Lastly, the licenses granted by the state will be valid for no more than 5 years, thus operators will need to go through the whole process of applying and reinstating their licenses again in the future. Furthermore, it is expected that the sports betting industry will generate over 50 million dollars in taxes for the state of Ohio every year.
Looking at the fees closely, an online sports betting license, codenamed “Class A”, can cost an operator as little as half a million dollars, or as much as 2.5 million dollars. Online gambling platforms that want to partner with a sports team will have to pay 1.5 million dollars for a license, however the ability to work with two teams will cost about 5 million.
The online sector is going to represent the majority of the money made from licensing and other fees, as retail licenses are vastly cheaper. A “Class B” license will cost an operator either 50 or 100 thousand dollars, costing less if the business already has an online license. Annual fees for brick-and-mortar establishments will be more affordable as well, at 10 thousand dollars a year.
