Lawmakers in Ohio are moving to ban credit cards from sports betting in a bid to clamp down on gambling harms arising in its population.
A draft rule proposed by Governor Mike DeWine’s administration and put forward by the Ohio Casino Commission reads: “remove credit cards as a permissible funding source for a deposit-enable account”. The rule-change proposal has been put forward for public comment. If passed, it could come into effect by the end of the summer.
Goal of bill to lower borrowing costs to fund gambling, says representative
Co-sponsor of the bill, state representative Gary Click, believes the bill will help remove a means of account funding “[Gambling addicts] lose and lose and lose, and then they figure out, how am I going to pay the bills? I just ran up my credit cards. Now I’m deeper in debt and nothing to show for it.”
Ohio launched legal sports betting in 2023 after lawmakers approved it in 2021, allowing both mobile wagering and in-person betting at the state’s four casinos. It became the 33rd state to legalize sports betting, a number that has since grown to 39 states and Washington, D.C.
In April, lawmakers introduced the “Save Ohio Sports Act,” a two-bill package that would also include two credit card ban proposals, mobile betting, bonus bet promotions and wagering on college sports. It would also prohibit prop bets, parlays and live wagering, citing integrity and responsible gaming concerns.
Ohio to join other states in implementing credit card ban
At least nine other states currently enforce these laws; Colorado, New York, New Jersey and Maryland are among those who have scrapped the payment option for would-be bettors.
The move comes amidst a more vigorous discussion within the state on how to tackle the issues presented by problem gambling in Ohio, which has been on the rise over the last few months.
A 2022 Ohio Gambling Survey, which s conducted every five years, found that gambling participation among Ohio adults had risen sharply, with nearly 83% reporting some form of gambling activity, up from about 75% in 2017.
The survey also found the rate of gambling disorder more than tripled during that period, increasing from 0.9% to 2.8% of adults, or about 255,000 people. In addition, roughly one in five Ohioans, representing about 1.8 million residents, were identified as at risk of developing a gambling problem.
In addition, a community poll conducted in Stark County last year found that 45% of respondents viewed gambling as a very serious or moderately serious problem in the area.
The survey also found that 41% of respondents either did not know where to seek help for themselves or others for problem gambling or left the question unanswered, underscoring what advocates say is a need for greater public awareness of available resources.
CFTC takes aim at Ohio’s stance on prediction markets
Meanwhile, the Commodity Futures Trading Commission (CFTC) has filed an amicus brief in the U.S. Court of Appeals for the Sixth Circuit in relation to the action Ohio is taking on prediction markets.
The amicus brief argues that Congress created a comprehensive regulatory framework overseen by the CFTC and that federal law preempts state laws governing CFTC-regulated markets.
In a press release, CFTC Chairman Michael Selig said: “The federal district court in Ohio took an improperly narrow view of the Commission’s jurisdiction, and we are asking the Court of Appeals to correct that error,
“As I’ve said repeatedly, the CFTC will not allow overzealous state governments to undermine the agency’s longstanding authority over these markets.”
Last month, Ohio Senator Bill DeMora introduced legislation that would require prediction market companies offering sports event contracts to obtain sports betting licenses and pay the state’s 20% sports betting tax, arguing Ohio is losing hundreds of millions of dollars in revenue.
Supporters of tighter regulation also cite concerns about insider trading and market integrity after federal prosecutors accused an Army Special Operations officer of profiting from bets tied to a secret mission in Venezuela and reports surfaced that traders made large wagers ahead of the U.S. strike on Iran.
