Sales by convenience stores would boost funding for education
As Ohio debates the best path to enter the legal sports betting arena, it is imperative that we do it right the first time. That means crafting a system that maximizes money for the state and enhances the business climate.
Today, legislators are debating two separate approaches: Senate Bill 111 would put the casinos in charge but does not specify how the proceeds would be spent; House Bill 194 would place sports betting under the Ohio Lottery Commission so profits would go to education.
The lottery offers the best path forward.
Ohio already made a major blunder by allowing casinos to write their own rules and create their own monopoly through a 2009 ballot issue. Casinos falsely sold the measure as a way to generate quick cash and boost economic development. Consider the recent comments of Matthew Schuler, executive director of the Ohio Casino Control Commission: “All of them (casino projections) were wrong.’’
The lottery has exceeded its projections every year for the past 10 years and has provided more than $650 million per year in the past five years for our schools.
Schools could see an even bigger windfall if the House bill is amended to allow retailers that sell lottery tickets to offer limited sports betting. Estimates show that such a change could generate up to an additional $100
million annually — much more than the $30 million projected under the House bill as introduced.
The sports betting debate comes as legislators struggle to find a way to pay for a new proposal to change the way the state funds public schools. Even under the best circumstances, the new funding plan is expected to be phased in over several years, making sports betting that grows over time a logical way to help pay for it.
Leading the procasino effort is state Sen. John Eklund, a Chardon Republican who recently told The Dispatch, “I cannot envision a single advantage that the Lottery Commission has in regulating sports gaming that the Casino Commission doesn’t have. I think there is a palpable difference between the games that the Lottery Commission is responsible for now and something like sports gaming.”
I strongly disagree. Experience is a significant advantage. The lottery brings nearly a half-century track record of proven success. A 2017 Pew Charitable Trust study, for example, showed that half of the 44 states with lotteries lost revenue in 2014 and 2015 because of competition from casinos and other forms of gaming. With a robust network of nearly 10,000 invested retailers and the implementation of innovative strategies, Ohio Lottery, however, experienced the contrary.
Yet, the House bill excises this network of dedicated lottery retailers and limits in-person sports wagers to Ohio casinos, racinos and military veteran and fraternal halls.
I represent nearly 6,000 retail convenience stores that employ more than 85,000 Ohioans. Most sell lottery products and have for decades. Convenience retailers must pass background checks and complete training specifically designed to prevent sales of age-restricted products to minors and protect against youth access. They are eager and already well-equipped to offer limited sports betting options.
Convenience retailers have no desire to turn their stores into mini-casinos. These multigeneration, family-owned small businesses are invested in the communities they serve. They sponsor Little League teams, support local charities and are a vital link in stopping human trafficking. To offer casino-style sports betting in a convenience store flies in the face of “convenience” and is inconsistent with retailers’ neighborly mindset. It is precisely why retailers agree that casino-style sports betting should be confined to existing casinos and racinos.
Casino-backers have failed to articulate what, if any, public purpose they wish to promote. The lottery, however, supports public education and develops our future workforce. Permitting lottery retailers to offer sports wagering would generate a much-needed $100 million windfall for Ohio schools. To me, the lottery does not just offer the best path forward. It offers the only winning solution.