While initial excitement surrounding the launch of Ohio sports betting, recent developments indicate that the market is evolving quickly, with some major sportsbooks exiting while others thrive. These changes highlight the volatile nature of a maturing market, as well as the increased pressure on operators to remain competitive.
Challenges in Ohio’s Market: Exits and Tax Pressures
Despite Ohio’s impressive sports betting growth — boasting a 48.1% year-over-year handle increase in June 2024 — several sportsbooks have struggled to maintain a foothold. SuperBook Sports and Betway both exited the Ohio market in 2024, and Betfred, a UK-based bookmaker, followed suit by closing its Ohio operations on August 31, 2024. This retreat is symptomatic of the challenges smaller operators face as Ohio’s larger sportsbooks, such as FanDuel OH and DraftKings OH, continue to dominate the market.
Betfred, in particular, was unable to compete in Ohio’s increasingly crowded landscape. By May 2024, Betfred had captured just 0.10% of Ohio’s $792.1 million online sports betting market, a far cry from the expectations set when it launched in partnership with the Cincinnati Bengals in 2023. The company’s struggles were compounded by regulatory shifts, including Ohio’s House Bill 33, which doubled the sports betting tax rate from 10% to 20%.
The tax hike, implemented in 2024, drew criticism from key figures, including GOP Representatives Jay Edwards, Jeff LaRe, and Cindy Abrams, who argued that it stifled growth and deterred investment. They stated in a July 2024 report,
“The General Assembly implemented a substantial tax increase on sports gaming companies who had already invested millions of dollars into kickstarting the industry in Ohio.”
With Betfred’s exit, Ohio will be left with 13 active sportsbooks, a significant drop from the early days of sports betting when multiple operators vied for market share.
NFL Season and Market Maturity: New Opportunities and Consumer Trends
Despite these challenges, Ohio is poised for a record-breaking NFL season in terms of betting engagement. A recent study from Optimove highlights that 84% of NFL bettors in Ohio plan to wager during the 2024-25 season, a 14% increase from the previous year. This growth reflects the broader national trend of heightened sports betting interest during the NFL season, with 71% of bettors indicating that they will place bets weekly. This level of engagement suggests that Ohio’s sports betting market, while undergoing consolidation, still holds tremendous potential for large operators to capitalize on high demand during peak seasons like the NFL.
The Optimove report also revealed that Ohio bettors lack brand loyalty, with 68% using two or more sportsbooks. FanDuel and DraftKings lead in popularity, but the report underscores that brand loyalty is fleeting, as 23% of bettors in 2023 expressed no preference for a particular operator. This insight suggests that while large sportsbooks dominate the market, the competition remains fierce, and promotions such as free bets are pivotal in attracting bettors.
Looking Forward: Legislative and Regulatory Uncertainty
While the NFL season brings optimism, Ohio’s sports betting future is still subject to regulatory pressures. Lawmakers have recently debated the potential repeal of the college prop betting ban, which could further shape betting trends. However, as of now, no action has been taken, and support for a repeal appears minimal.
Ohio’s sports betting landscape is clearly in flux, with the exits of smaller operators contrasting with growing consumer engagement during major sporting events. As the market matures, it will be interesting to see how the remaining sportsbooks adapt and how future legislative changes impact the state’s betting ecosystem.
