Householder Arrest Could Slow Ohio’s Efforts To Legalize Sports Betting

Ohio’s Attempts to Legalize Sports Betting Could be Delayed by Householder Arrest

Posted on July 31, 2020

The apprehension of Larry Householder could potentially create another obstacle in the path of Ohio’s attempts to legalize sports betting.

The influential GOP politician has held the position of Speaker of the House in Ohio since January 2019.

On the morning of July 21, Householder and five others were arrested by federal authorities.

Since then, all his contributions to the state’s legislature during his tenure are being scrutinized.

The sports betting bill from the House, which was recently forwarded to the Senate after being stagnant for months, is included in this. The arrest of Householder is attracting unwelcome scrutiny, especially as the bill is already under close examination.

Householder arrested for bribery

What is Householder alleged to have done?

In brief, he accepted bribes from energy corporations. However, the extensive explanation is a bit more complex.

Householder initiated an aggressive campaign to bail out two nuclear power plants in Ohio shortly after he assumed his role as speaker.

The plan worth $1.3 billion was contentious, with Householder managing to insert it at the eleventh hour.

Prosecutors have stated that Householder’s campaign for the bailout was a result of a $60 million bribery scheme.

It is alleged that the money came from Energy Harbor, an Akron-based company that owns the two power plants.

The concept is that Householder has been getting quarterly payments of $250,000 for a while now.

It is alleged that those payments assisted him in ascending to power within the state, and in gratitude, Householder rescued the power plants.

David DeVillers, US Attorney, claims he has never witnessed a case like this in Ohio before.

This is probably the biggest bribery and money laundering scheme ever executed against the citizens of Ohio. It was nothing less than bribery, pure and simple. It was a case of quid pro quo; it was pay to play.

Allegedly, Energy Harbor also channeled approximately $38 million towards Householder’s nonprofit organization, Generation Now, in addition to transferring over $500,000 directly into his personal accounts.

In light of recent events, Householder’s contributions in the House are being reassessed. Considering his strong support for the House’s sports betting bill, it could now potentially be at risk of being discarded.

What is the future for sports betting in Ohio?

Currently, there are two distinct sports betting bills under consideration in Ohio. One is backed by the Senate, while the other has the support of the House.

The disparity between the two lies in the determination of who would oversee the industry and the designation of the money’s destination.

The House bill proposes that the Ohio Lottery Commission supervise sports betting, with the proceeds going towards education. Conversely, the Senate bill suggests that the Ohio Casino Control Commission should manage it, with the funds being directed into Ohio’s general revenue fund.

Gov. Mike DeWine backs the Senate bill. The balance may now be shifting in its favor due to the Householder situation, which is causing further scrutiny of the House’s bill.

Initially, the aim was to present a finalized bill to DeWine by this fall. However, as weeks pass, this is appearing increasingly less likely.

The next stage in the process involves the Senate conducting hearings on the two bills in one of its sessions.

The last session took place on July 21, coinciding with Householder’s arrest. However, there was no advancement in sports betting by the Senate that day.

The next opportunity to initiate proceedings will be during the Senate’s sessions on Aug. 18 and 19.

Until then, Indiana’s eastern neighbor is in a state of uncertainty. It is hoped that for the state’s gamblers, the Senate will make some progress towards legalization in the upcoming months.

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Jake Garza

Jake Garza works for Catena Media as a US Gambling Industry Analyst, focusing on Midwest sports betting and casino content. Before delving into the legal gambling industry, he was a professional sports writer, covering teams like the Cincinnati Bengals, Indianapolis Colts, and Indiana Pacers. Currently, Garza holds the position of Managing Editor for PlayIndiana and PlayOhio, having previously worked with brands such as PlayIllinois and PlayMichigan. Since 2019, he has been reporting on the gambling industry and collaborates with a team of journalists to deliver extensive coverage of the legal US gambling industry.

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