The kiosks, which were installed in bars, restaurants, and grocery stores across the state in January 2023, have generated just over $4.3 million in bets since they were launched. OH Lottery officials estimate overseeing and operating costs of $650,000 annually, which means OH Lottery will be losing money since it’s only collected $103,000 in revenue from those bets through April.
OH Lottery kiosk losses are due to a number of factors, including:
- Low participation: Only a small percentage of Ohioans have used the kiosks to place bets.
- High fees: The Lottery charges operators of the kiosks a 10% fee on all bets placed.
- Competition: The kiosks face stiff competition from other forms of sports betting, including mobile apps and casino-style sportsbooks.
The Lottery’s losses are a setback for the agency, which had hoped to generate millions of dollars in revenue from the kiosks. The agency is now considering a number of options to turn things around, including reducing the fees it charges operators and expanding the number of locations where the Ohio betting kiosks are available.
In the meantime, the Ohio Lottery is likely to continue to lose money on its sports betting kiosks. The agency must take steps to address the factors that are contributing to its losses if it hopes to turn things around.
One contributing factor to the Lottery’s losses is low participation. Only a small percentage of Ohioans have used the kiosks to place bets. This could be caused by several factors, including:
- Lack of awareness: Many Ohioans are not aware that the kiosks exist.
- Convenience: Ohio betting apps and casino-style sportsbooks offer a more convenient way to place bets.
- Trust: Some Ohioans may not trust the Lottery to operate a fair and honest sports betting system.
The Lottery also charges operators of the kiosks a 10% fee on all bets placed. This high fee makes it difficult for operators to earn a profit, and it may be discouraging some operators from offering the kiosks in their establishments.
The kiosks also face stiff competition from other forms of sports betting, including mobile apps and casino-style sportsbooks. Mobile apps are akin to having a sportsbook in your pocket, and bets can be placed from anywhere, and casino-style sportsbooks offer a more immersive and social experience.
The Lottery’s losses are a setback for the agency, but it is not too late to turn things around. The Lottery can address the factors that are contributing to its losses by:
- Raising awareness: The Lottery needs to do a better job of educating Ohioans about the kiosks and how to use them.
- Reducing fees: The Lottery could reduce the fees it charges operators, which would make it easier for operators to make a profit and encourage more operators to offer the kiosks.
- Expanding locations: The Lottery could expand the number of locations where the kiosks are available, which would make them more convenient for Ohioans to use.
If the Lottery takes these steps, it could turn things around and start generating revenue from the kiosks. However, if the Lottery does not take action, it is likely that the kiosks will continue to lose money.