Potential Economics Goals and Repercussions of Ohio Betting Legislation

One of the most controversial topics when it comes to the economy is the legalization of sports betting in the United States. Since sports betting has grown into a billion-dollar industry, you can ask yourself, “how can there be a downside?” 

There are only economical benefits. However, like anything else, there is a case to be made that there are drawbacks when it comes to its economic impact.

In this piece, we take a look at the economics of Ohio betting legislation, and we dive into how perks such as generous Ohio sports betting promo codes could affect the economics and goals of the state and operators.

The Economical Growth Of Sports Betting In The United States

Legal sports betting in the United States was born on May 14, 2018. On this date, the Supreme Court struck down the PASPA, which then opened the door for individual states to establish and regulate their own laws when it comes to legal sports betting. Since that time, we have seen the entire sports betting industry change and evolve as the years have gone by. 

Before mobile sports betting was legalized, the sports betting and gambling industry as a whole, for that matter, was centered around Las Vegas and to a lesser extent, Atlantic City. That is no longer the case. Though notable gaming brands like MGM Grand and Caesars Entertainment remain staples in the space, the legalization of online sports betting has opened the floodgates for brands that include FanDuel and DraftKings to rapidly make a splash. 

Once only known as staples in the Daily Fantasy Sports space, both FanDuel and DraftKings are also known for mobile sports betting. They seemingly made their impact overnight. 

According to the Michigan Journal of Economics in an article written on January 12th, 2022, mobile sports betting sites have made north of $5.6 billion in three years with over $700 million in tax revenue. Keep in mind that when this study was done, fewer than 30 states had legal sports betting in one form or another, including retail and online. 

Furthermore, the legalization of sports betting is also projected to add an astonishing $22.4 billion to the U.S. Gross Domestic Product (GDP). This includes a projected addition of 200,000 jobs and roughly $11 billion back to employees tied to the sports betting space.  

When it comes to projected growth over the next 10 years, Goldman Sachs expects the legal sports betting market to see a 40% annual growth. 

The Economical Impact Of The Legalization Of Sports Betting In Ohio

As you can see above, sports betting has been a substantial money maker for the United States economy. This will only translate to the economy of Ohio in the wake of its January 1st, 2023 launch of legal sports betting in the Buckeye State. 

According to the Ohio Legislative Service Commission, legal Ohio sports betting is projected to render over $24 million in tax revenue by June 30, 2024. This revenue will come from a projected $9 billion-$12 billion in bets placed by Ohioans in the first 12-18 months. 

Just in its first year alone, it is projected that the Buckeye State will place roughly $8 billion in bets. If those projections come to fruition, it would immediately make the state of Ohio one of the most impactful sports betting markets in the United States despite it being one of the newest to introduce the practice of legal sports betting online. 

One of the biggest ways sportsbooks will gain new bettors is by deploying generous Ohio sports betting promos. Without new bettors registering for new accounts on a daily basis, bets can not be placed and revenue can not be made. Sportsbooks know this, which is why these offers are in place.

The Repercussions Of Legalized Sports Betting In Ohio 

One of the primary repercussions of legalized sports betting in the United States has nothing to do with revenue or economic gain. Instead, it correlates with mental health. Importantly, addiction. Gambling addiction to be exact. 

According to Yale Medicine, gambling addiction occurs in roughly one percent of Americans. Although the onus of gambling addiction can not be entirely placed on sports betting since poker, slot machines and your everyday state lottery also fall into the gambling niche, it will most certainly play a role. 

That estimated one percent of Americans who suffer from gambling addiction will vary. For example, if someone lives closer to a casino or a horse racing track, that number will be higher than for those who do not. 

This is where the legalization of online sports betting comes to play. With mobile sports betting, there are no geographical limitations. As long as you are located in a state or region that requires legalized sports betting, you can legally bet on sports on your computer or mobile device. 

If you are an everyday sports bettor with control this is a non-issue. But for an addict, this can spell doom for the individual person as well as the overall gambling addiction rate. 

For the state of Ohio, this is no different. 

 

There are costs when it comes to addiction. Addiction in any form may cause some families to lose their homes. Some addicts may also not be able to afford to feed their families, depending on how deep into the addiction they are as well as their overall financial situation. There is also the aspect of treatment. All of these situations can ultimately come down to government funding in one form or another. 

Per experts from the University of Cincinnati, roughly 250,000 people already suffer from gambling addiction in Ohio. This is a number that is expected to increase with the introduction of legalized sports betting, especially since Ohio is the seventh-largest state in population. 

Per reports, the state of Ohio will do its part to help those with a gambling addiction. Ohio will gain 10 percent in tax revenue from live sports betting and online sports betting. Two percent of such will be allocated to the treatment and prevention of gambling addiction. 

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This content contains sponsored advertising content and is for informational purposes only and not intended to be investing advice.