Ohio's sports betting boom and its effects

Farah Siddiqi

By John Hilber / Broadcast version by Farah Siddiqi reporting for the Kent State NewsLab-Ohio News Connection Collaboration.

In the first two days after sports betting was legalized, Ohio saw over 11.3 million bets placed - nearly one for every Ohio resident, according to the Cincinnati Bar Association.

Within a year, Ohioans had bet $7.65 billion on sports.

Sports betting became legal in Ohio effective Jan. 1, 2023. Since then, sports betting has driven a significant increase in state tax revenue and sports viewership - along with reports of problem gambling, experts say.

"The number one driver [of legalizing sports gambling] is a tax revenue opportunity," said Stephen Shapiro, a professor in the Department of Sport and Entertainment Management at the University of South Carolina. "In states where it is not legal, it's illegal gambling, and the state is seeing no benefit from that. So that's revenue that did not exist before, and it could be used for a variety of benefits for the state."

In 2023, Ohio collected more than $936 million in tax revenue from sports betting. Gamblers have to pay a 10% tax on all winnings. According to the Ohio Department of Taxation, the state uses the taxes to fund different Gross Casino Revenue Funds and efforts to help with gambling problems.

Apps like FanDuel and DraftKings facilitate many sports bets in the 38 states that have legalized it. By using apps, gamblers aren't limited to traditional bets on the margin of victory or bets on who wins or loses outright - they have many options per sporting event, like multi-stage parlays, event-based bets and individual performance bets.

"Traditionally, someone could have bet on this game, and they watch the game in its entirety, and they win or lose based on the outcome and the score - it's one bet," Shapiro said. "Now, in this particular game, the Packers get the ball, and they drive down the field and score a touchdown, and there were 20 opportunities to bet during that one drive."

Gambling means more people watching sports, experts say

Now legal in most of the United States, sports betting has shown some benefits for professional sports leagues.

"People are definitely watching sports that they have not watched before due to gambling - there is no question about it," Shapiro said. "It leads to more consumption and consumption of sports that you're not typically watching."

That may be because gambling can heighten viewers' excitement.

"Gambling, for the most part, provides people with the opportunity to get excited because of the possibility of winning," said James Whelan, a research professor in the Department of Psychology at the University of Memphis. "There are social reasons to gamble, but in the end, the idea of doing something risky is getting rewarded by winning money,"

Ted Baugh, the vice president of Corporate Partnerships and Premium Hospitality for the Cleveland Guardians, said Major League Baseball is trying to help everyone associated with the sport navigate legal gambling, including players and fans alike.

"It is constant education," he said. "It is constant reminding that it is legal, but don't be stupid. It is more about what is good for the fan and what is legal."

As gambling expands, so does problem gambling

According to Ohio for Responsible Gambling, the Problem Gambling Helpline in Ohio received 10,637 calls in 2023 compared to 6,835 in 2022.

"Everybody with a gambling problem comes at it a little differently," Whelan said. "For many of these people, there are other things going on in their life that also feed into why they may become overly involved in gambling, even though gambling is harmful to them."

Whelan encourages gamblers to monitor themselves by asking, in part: "When am I in harm's way? When am I getting hurt by this, and I need to back off?"

Whelan said the majority of people who want to control their gambling can benefit from cognitive-behavioral intervention treatments. Cognitive-behavioral therapy aims to change a patient's behavior by changing how the patient thinks about the actions.

"Have a good time, enjoy yourself, set limits and stick with them," Whelan said.


This collaboration is produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.