Page 6 - March-April-CBA-Report

Cover Article
As the credit reporting agencies note, there are particular risks to using credit cards to fund online gaming.6 Deposits made with a credit card may be treated as cash advances. Cash advances typi- cally carry high interest rates. Using a credit card to make a deposit also affects a consumer’s credit utilization rate, which is the amount of available revolving credit in use. Credit reporting agencies use credit utilization to help determine a credit score. Failing to pay the card issuer for a betting deposit in full prior to the issuer reporting credit usage could have a negative impact on credit utilization and, therefore, on a consumer’s credit score.
All bettors should know that gaming income is taxable and must be reported as income.7 The tax on certain winnings may be withheld by the paying entity. Gaming losses may be deducted by a taxpayer who itemizes deductions, but only to the extent of the gaming winnings reported and only if tracked accurately with sufficient docu- mentation. As always, one should consult a tax professional for advice on this subject.
Though not a tax, bettors should also understand the fee that a propri-
etor charges simply to make a bet. Google “vigorish” if you want to learn more.
Bettors have recourse if they dispute whether they won a wager. If a proprietor refuses payment of alleged winnings, the proprietor must inform the bettor that he or she may file a complaint.8 The propri- etor must investigate and respond to the complaint within ten business days.9
There can be criminal consequences for violating Ohio’s sports betting laws. For example, it is a felony to bet on a sporting event under age 21 or to help someone under age 21 do so. It is also a felony to place a bet with knowledge not available to the general public, offer anything of value to affect the outcome of a sporting event, or use counterfeit currency to place a bet.10
The Law Governing Proprietors
Proprietors must be licensed by the OCCC to accept bets. There are three types of sports gaming licenses. The “Type A” license authorizes a gaming proprietor to offer sports gaming through one or
more online sports pools.11 Type A propri- etors must also operate under a “Type B” license or maintain at least one opera- tional place of business in Ohio.12 There can be no more than 25 Type A licensees in Ohio at once.13 Type A licensees may only contract with one mobile manage- ment service to provide an online app.14 Type A proprietors in Hamilton County include Hard Rock Casino, the Cincinnati Bengals, the Cincinnati Reds, FC Cincin- nati, and Belterra Park.
Type B licenses authorize a proprietor to offer sports gaming at a location speci- fied on the license.15 Type B licensees must conduct significant economic activity in the county in which it is located.16 There can be no more than 40 such licenses at once.17 The OCCC must give preference to professional sports organizations, casino operators, and video lottery sales agents in granting Types A and B licenses.18
“Type C” licenses authorize a propri- etor to offer sports gaming through a self-service or clerk-operated sports gaming terminal.19 Hamilton County has more than 50 bars and restaurants with kiosks to place sports bets.
Ohio law allows gaming propri- etors to manage their risk. Proprietors may reject or pool wagers, or lay off one or more wagers with another propri- etor.20 A proprietor may also offset losses or manage risk with a liquidity pool in another jurisdiction.21
Outlook for Sports Gaming in Ohio
Ohio bettors were busy on the opening weekend. On January 1 and 2 alone, Ohio had over 11.3 million betting transactions, the most of any state. Cincinnati had 1.9 million betting transactions, the most in Ohio. Ohio is slated to have between $8 billion and $12 billion in bets placed in 2023. Projections have Ohio in the top four states for future betting transactions.
Estimates of taxable revenue range from $30 - $50 million in 2023. Proprietors are taxed at a 10 percent rate on sports gaming receipts.22 This tax revenue will help pay for various educational programs and interscholastic extracurricular activi- ties and athletics, and to help alleviate the effects of sports gaming addiction.23
Hilton Cincinnati Netherland Plaza Hotel | Cincinnati, OH
THE INTERSECTION OF RACE IN THE CRIMINAL LEGAL SYSTEM
Race affects what happens in every criminal case, beginning with the initial police encounter on the street and the media attention, to pre-trial litigation, and throughout a trial. This program is designed to help criminal practitioners identify and confront issues of racial bias in our courts, in the media, within the law enforcement community, by prosecutors, and yes, even within the defense team. Attendees will hear from a variety of trial lawyers, top academics, civil rights lawyers and activists, and experts who will offer their personal perspectives, relevant data,
NACDL's 6th Annual Seminar
RACE MATTERS VI:
strategies, and ideas on why race matters in every criminal case.
NACDL.org/RaceMatters
May 10-12, 2023
NACDL.org/RaceMatters
#NACDLRaceMatters
Courtesy of the National Underground Railroad Freedom Center
Courtesy of the National Underground Railroad Freedom Center
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THE REPORT | March/April 2023 | CincyBar.org