Governor Floats Ohio Sports Betting Credit Card Ban

Ohio legislators initially swung big at restricting Ohio sports betting. Ohio governor Mike DeWine’s latest attempt appears to take a far more modest view — which many sportsbooks were getting to on their own.

DeWine’s administration has put forth a draft rule change through the Ohio Casino Control Commission. Per Ohio law, Ohio residents now have until May 15 to comment on the proposal. After the comment period, the commission would hold a public hearing before sending the proposal on to a state legislative review. If it passes that step, the ban would then become legal in the Buckeye State.

It’s the latest attempt by Ohio legislators to rein in sports betting. But this one appears far less restrictive than other efforts by both DeWine and state legislators. Previously, the legislature proposed eliminating all online forms of Ohio sports betting, which would have restricted bettors to making wagers at a brick-and-mortar casino.

That would have cut deeply into Ohio’s revenue, given that 98% of all bets in the Buckeye State are placed online. Rep. Gary Click (R-Sandusky) was one of three sponsors of that bill, which hasn’t gained much traction in the state legislature.

Click spoke favorably on DeWine’s credit card ban proposal, perhaps a signal that he’s willing to take what he can get rather than push for his initial sweeping change.

“(Gambling addicts) lose and lose and lose, and then they figure out, how am I going to pay the bills?” Click said. “I just ran up my credit cards. Now I’m deeper in debt and nothing to show for it,”

Is the Ohio Sports Betting Credit Card Ban Necessary?

Given the state of the industry, probably not. In April, Caesars became the latest sportsbook to stop accepting credit card deposits, joining the likes of FanDuel, DraftKings, BetMGM, Fanatics and Bet365. Caesars had been pushing its rewards credit card, but with the United States turning against using credit cards to gamble, it decided to proactively stop accepting that form of payment.

That means that none of the six largest sportsbooks in Ohio accept credit card deposits. A few sportsbooks, such as theScore and Betway, continue to accept credit cards for Ohio sports betting.

However, most bettors prefer other forms of payment to play. According to PaySafe, only 27% of Americans who gamble prefer using a credit card. Credit card transactions for betting must be classified as cash advances, leading to high fees that eat into the bettor’s deposits. Debit cards carry no such restrictions, and Ohio’s suggested restriction wouldn’t affect debit card deposits.

Why Is Ohio Pursuing This Change?

Banning credit cards gives Ohio legislators something they can bring back to voters ahead of the upcoming election. With the votes probably not there to pass sweeping gambling legislation, a credit card ban still gives the appearance of a step forward. Even though most bettors and sportsbooks in Ohio wouldn’t be affected, it still puts forth the image that the state is taking concerns seriously.

It’s also a good way for Ohio to restrict sports betting without damaging its revenue. The state takes in about $2 billion a year from gambling revenue, as Ohio currently taxes sports betting at 20%. By taking a step sportsbooks operators were already moving toward, Ohio can protect most of its revenue while taking an action many people agree with.

Finally, the timing is much easier. Even if the votes were there to pass Click’s bill, the Ohio legislative session is open through December. With Ohio voting in November, there’s probably not enough time to get such a large bill through before voters have their say. A credit card ban could take effect in the summer, which incumbents could then use in their pitch to voters.

What Is the Timeline?

After May 15, it’s unclear. Most likely, a public hearing would be set for early June, with the change becoming legal in July. If successful, Ohio would become the 10th state to enact a full ban of credit card deposits for legal sports betting.