Ohio's Regulatory Flexibility Could Extend Lifeline to Sportsbook Projects

A Time Extension on the Horizon for Ohio Sportsbook Licenses COLUMBUS, Ohio — As the deadline looms for sports betting license holders in Ohio, the state’s regulatory body is deliberating on a rule change that could provide much-needed leeway. This change could particularly benefit entities struggling to commence operations by the established deadline.

Currently, license holders are required to start operations by July 1; failure to do so results in license revocation. However, the Ohio Casino Control Commission is contemplating a modification that would allow the executive director to decide whether to extend this deadline on a case-by-case basis.

Local Sportsbook Initiative at Covelli Centre Faces Challenges

Among those affected by the potential rule change is Phantom Fireworks, a Youngstown-based company. The company, which holds a Type B sportsbook license, is endeavoring to establish a betting parlor. They have proposed an expansive new development at Covelli Centre to facilitate this. Despite their efforts, they are unlikely to meet the deadline.

A recent communication from the commission to sports gaming stakeholders revealed that an amendment is under consideration. This amendment would relax the stringent “use it or lose it” policy, providing the executive director with the authority to grant extensions if a licensee’s setup is progressing, albeit more slowly than planned.

Period and Licensing Context

The commission has opened a window until May 7, after which it will decide whether to proceed with the rule change or introduce modifications. The regulatory process for such changes typically extends over six months, as noted by Jessica Franks, a spokesperson for the commission.

In 2022, the commission awarded various sports gaming licenses, with betting officially starting on January 1, 2023. The licenses are categorized into three types: Type A for digital platforms like Hollywood Gaming at Mahoning Valley Race Course; and Type C for kiosks in bars and restaurants.

Phantom Fireworks’ Ambitious Plan for Covelli Centre

In March, Phantom Fireworks discussed a partnership with city officials to build a 20,000-square-foot addition to Covelli Centre. This new space would include both a restaurant and a sportsbook. Michael Podolsky, deputy general counsel for Phantom, outlined that the project would cost roughly $7.5 million, with the city potentially contributing $5.5 million for construction. Phantom would then invest an additional $1.5 to $2 million to equip the facility.

Podolsky emphasized the project’s necessity and the need for an extension given the scale of the development. He also highlighted that the original “use it or lose it” policy was intended to prevent monopolization of licenses, ensuring fair competition. He stated, “If we continue down this path, having it open within the current time frame is not possible. We would need an extension of the deadline.”

Future Prospects and Local Impact

If the commission grants an extension, it could significantly affect local sports enthusiasts and the economic landscape of Youngstown. As this regulatory story unfolds, stakeholders and residents are keenly watching, hopeful for a favorable outcome that will bring both entertainment and economic benefits to their community.

Source:

“Proposal Would Buy Time for Sportsbook Project at Covelli Centre”, businessjournaldaily.com, April 30, 2024.