Ohio Governor Mike DeWine has declared legalizing sports betting as his biggest mistake. DeWine signed off on legislation to approve sports betting in 2021, but has become increasingly disenchanted with the industry amid scandals and a rise in problem gambling. 

“What I did not anticipate — and I should have — is the massive, massive amount of money that these gambling companies would come in with their advertising and they flood the airways,” DeWine said at last week’s Columbus Metropolitan Club forum.

“More Ohioans are gambling and losing money, and athletes are being abused online as a result of sports betting,” he added.

Ohio launched its sports betting market in 2023, and the state allows wagering on esports through licensed sportsbooks if the events are approved by the Ohio Casino Control Commission. 

Ohio law specifically recognizes “esports events” as regulated competitive video-game contests, meaning sportsbooks can legally offer esports markets alongside traditional sports betting.

Microbetting Playing With Fire

DeWine has been particularly outspoken about his opposition to microbetting. Microbetting is in-play wagering during sports events, such as the next pitch in baseball or the next map in esports. 

After two Cleveland Guardians players were arrested for suspicious betting activity on their pitches, DeWine called for a ban on the markets. Unable to secure the agreement of the MLB and sportsbooks, he eventually settled for a stake limit of $200. 

He said a prohibition of the bets “needs to be holistic, it needs to be universal,” adding that sports leagues are “just playing with fire” by allowing the bets. “I mean, they are just asking for more and more trouble, their failure to address this.”

In-play betting is dominant in esports, with as much as 86% of wagers placed on Dota 2 coming from live wagers. This is far above the 55% rate across all sports. 

Niche esports events are also attracting more betting, which can increase integrity risks as players in lower-tier events are tempted to manipulate their performances for betting purposes. 

Will Other States Heed DeWine’s Warning?

With DeWine declaring legalizing sports betting as his biggest mistake, it may lead to other states questioning whether to expand legal gambling options. 

In nearby Kentucky, Governor Andy Beshear vetoed a wide-ranging gambling bill last month. Efforts to expand gambling in Minnesota and Mississippi also stalled this year, although Wisconsin is set to launch online betting after approving a bill last month. 

DeWine warns the states that have not yet launched online markets against opening that can of worms. Now that it’s live and legal in Ohio, there’s little chance of reversing the law. DeWine’s term as Governor is set to come to an end next year.

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Gambling interest groups are spending big in campaigns ahead of the Pennsylvania primaries this month. 

The Super PAC Win for America, which is funded by sportsbooks FanDuel, DraftKings, and Fanatics, has now given over $5 million to Win for Pennsylvania. 

The money is largely used to back incumbents’ campaigns after gambling groups successfully lobbied to prevent increases in the state’s sports betting tax. Pennsylvania takes 36% of sportsbook revenue in taxes. 

The Win for America PAC primarily supports Republican candidates. Money has been used in Pennsylvania to back the campaigns of Sens. Lisa Baker, Camera Bartolotta, and Chris Gebhard, according to a report from Spotlight PA. 

Sportsbooks Thankful For No Tax Increase

Primarily, gambling companies are backing the candidates who declined to raise taxes on the industry in last year’s budget. 

After the budget passed with no increase, the Sports Betting Alliance (SBA) ran ads thanking Gebhard and Senate Majority Leader Joe Pittman for “standing with PA sports fans and against raising taxes.”

The SBA, which includes the three sportsbooks funding Win for Pennsylvania, as well as bet365 and BetMGM, argues that increasing sports betting taxes would “force the companies to pass on the costs to consumers.”

Companies largely passed on the costs to consumers when hit with a new per-bet tax in Illinois last year. The SBA has sued the city of Chicago after it added another levy on top of the new betting surcharge. 

Esports Betting Push Could Be Renewed

Republican politicians have also introduced legislation to expand legal betting in Pennsylvania, including allowing esports gambling. 

Rep. Ed Neilson introduced HB1636 last year, which would legalize esports betting and give the Pennsylvania Gaming Control Board the power to authorize other events as it sees fit. 

The legislation was referred to the House Gaming Committee in June last year, but has not made any progress since. 

If the gambling-backed incumbents win re-election, it could help renew the push for esports gambling to be authorized. 

Pennsylvania Proposes Regulating Esports Prediction Markets

In the meantime, residents can wager on esports prediction markets, but the state has also introduced legislation to regulate this. 

A group of Democrats introduced HB2497 last week. The bill proposes charging prediction market platforms a $1 million license fee and imposing a 20% tax on revenue. 

The legislation would also allow the Board to restrict certain markets relating to “sensitive matters,” including elections, military conflicts, judicial rulings, and natural disasters.

It would not, however, restrict esports or other markets on sporting events. 

Skill Gaming Industry Spending On Rival Campaigns

Another key gambling interest in the elections is coming from the skill gaming industry. Sen. Bartolotta, who has been backed by the sportsbooks, said skill games proponents are “trying to take the Senate of Pennsylvania hostage” through campaign spending.

Citizens Alliance, a conservative political group funded almost entirely by skill game developer Pace-O-Matic, has spent millions of dollars in campaigns against Bartoletta, Baker, and Gebhard. 

Gebhard introduced a bill that would restrict and tax skill games across the state. Cliff Maloney, CEO of Citizens Alliance, said the group is  “working to hold Senate Republicans accountable that proposed a new tax on certain small businesses.”

Like Bartolotta, Gebhard spoke out against the campaign against him. He stated, “Seeing the sheer power of third-party money, we probably should be having a conversation on: ‘Is this a positive for the system and the people of Pennsylvania?’”

The primaries on Tuesday will give an indication of which group has spent its money wisely.

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Bally’s will become the second active online sports betting platform in Rhode Island after the company secured a license in the state. 

Rhode Island launched sports betting in 2019, but offers users only one option, Sportsbook Rhode Island. The state extended its deal with IGT to operate the platform earlier this year, but also opened the door for another company to enter the market. 

Bally’s was confirmed as the new licensee on Wednesday, with Lottery Deputy Director Michael O’Rourke admitting it was not a competitive application process. Only one other operator applied, Rush Street Interactive. 

“Bally’s is thrilled to have been awarded a second sports betting license by the State of Rhode Island,” said spokesperson Patti Doyle. “We appreciate the confidence and trust the State has placed in our ability to provide a best-in-class product – built for scalability, innovation, and the evolving demands of modern bettors – which will generate additional revenue to benefit the Rhode Island taxpayers.”

High Tax Rate Puts Off Applicants

“There was a hope we’d get more companies to reply, but they didn’t,” O’Rourke told NBC 10. The prohibitive 51% tax rate on gambling revenue may have put many companies off. 

“I think that was part of the reason some of the companies did not respond,” O’Rourke admitted. 

Rhode Island’s tax rate is the highest in the country, along with New York and New Hampshire. New Yorkers wager more than any other state, which is some compensation for the high tax rate. Rhode Island, with a population of just over 1 million, is a less attractive proposition. 

Bally’s already operates the state’s two licensed casinos in Lincoln and Tiverton, meaning it already gets a cut of the sports betting revenue. 

Under the state’s revenue-sharing structure, the state receives 51% in taxes, the online operator collects 32%, and the physical sportsbook gets 17%. With a foothold in the state already, Bally’s seemed the obvious choice to launch an online platform. 

Esports Betting Could Be Launched At Bally’s

Sportsbook Rhode Island does not currently offer esports betting, but Bally’s online platform, Bally Bet, offers odds on most major events. 

The platform will go live in Rhode Island in November, and esports could feature on the app. Bally’s has had a keen interest in esports over recent years and made a $100 million offer to acquire Allied Esports in 2021. In the end, it lost out to private investment firm Element Partners.

In the same year, Bally’s successfully completed its acquisition of Gamesys, which fuels its online betting engine. The company’s technology allows it to manage thousands of micro-bets per second and offer a wide range of in-play esports markets. 

Bally’s is looking to expand its online presence with the acquisition of evoke, the parent company of popular online platforms William Hill and 888. The company is rumored to be the frontrunner as the struggling UK-based gambling group looks for buyers.

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Sportsbook supplier DATA.BET has declared the esports betting industry to be booming. The company reported revenue for the quarter doubled year-on-year, with turnover from esports gambling also up over 70%. 

In a prior report, DATA.BET said growth was particularly strong in low-tier esports events, which are boosting sportsbooks’ profits. 

The latest company release said that Q1 this year saw double-digit growth in profit, turnover, bet counts, and active users for betting on CS2, Dota 2, League of Legends, and Valorant. 

Niche Markets Driving Profits

However, it again highlighted that other events are seeing more dramatic increases in betting. Niche disciplines collectively delivered a 245% increase in profit compared with Q1 2025, noted the company in its Q1 report.

Strong betting markets included Rocket League and Rainbow Six, driven by the addition of new markets.

“High margin efficiency has been a real catalyst this quarter,” said Bohdan Holovnov, Head of Esports at DATA.BET. “Partners have increasingly recognized that esports can deliver meaningful commercial returns, encouraging them to scale up promotional campaigns and drive more traffic into the vertical.”

“That feeds directly into more new users, higher turnover, and stronger margins. At the same time, we continue to offer the broadest match and discipline coverage on the market, and the impact is also reflected in the rapid growth of combo bets across our partner platforms.”

The company introduced new features this quarter, including allowing partners to embed betting markets directly onto mobile live streams. It noted that combo betting has grown rapidly, which is traditionally an area of high margin for sportsbooks. 

Latin America Attracting Esports Bettors

Rainbow Six betting was particularly strong in Latin America, where DATA.BET said it “has solidified its position as a premium sportsbook solution supplier.”

Several countries are opening up newly regulated markets, and the region is a target for betting companies. Betsson reported strong growth in the region in its Q1 earnings, and hopes a recent partnership with Paraguayan operator JugaMax will fuel further gains. 

Riot Games has experimented with new formats to engage teams in Latin America. For example, inviting teams that missed out on the Masters Santiago qualification, alongside second-tier squads from regional Challenger leagues, to compete at the Valorant EMEA Clash 2026.

The tournament filled a gap in the event schedule and led to strong new-player acquisition, with newcomers accounting for 55.4% of total bets placed.

Increased Wagering Increasing Integrity Risks

Increased wagering on low-tier events can increase the risk of match-fixing, as amateur players are tempted to manipulate their performances for betting purposes. 

As markets expand, players may believe it may be easier to go undetected, but the Esports Integrity Commission (ESIC) warns that it is closely monitoring markets. The organization issued a wide range of sanctions last month. 

DATA.BET has been a partner with ESIC since 2019 and alerts the organization to any suspicious betting activity. 

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