COLUMBUS, Ohio — The rule for Ohio’s sports betting licenses is “use it or lose it.” But regulators are looking to make that rule much softer, which could help companies with unused licenses like the Cleveland Cavaliers and Canton’s Hall of Fame Village.

Today a company can have its license revoked if it goes 12 months without accepting a wager. But under the newly proposed rules, the Ohio Casino Control Commission’s executive director can decide whether to revoke the license.

It essentially turns revoking a license from something regulators must do into something they have the option to do, explained Jessica Franks, the Commission’s spokesperson.

The change means that a company could go the length of the license period, typically five years, without accepting any bets — and not lose its license.

While sports betting has been legalized for 16 months in Ohio, several companies have yet to use all their licenses, including the Cleveland Cavaliers, JACK Thistledown Racino and Hall of Fame Village in Canton.

The Cavs opened an in-person sportsbook with Caesar’s, but their mobile-betting partner Fubo Sportsbook shutdown late in 2022 — leaving the basketball team without an app.

JACK Entertainment accepts bets at two betting lounges and on its BetJACK app. But the company has a second and currently unused mobile-betting license.

State records list WynnBet as JACK’s partner, but Wynn has shut down its mobile app in most states.

And while the Hall of Fame Village has Jake Paul’s Betr app, the company said it will only open a physical sportsbook if it can find the right partner.

The Cleveland Browns also have not opened a physical sportsbook yet, despite having a license. But a random $20 worth of bets placed in December, per state data, means that clock has already been reset.

Regulators already gave license holders one extension. Formal rule changes can take six months, Franks said, so another extension is likely to come before this rule change.

There are still mobile-betting licenses available. But in some counties, physical sportsbook licenses are limited and already spoken for. Cuyahoga County is limited to just five physical sportsbooks, with only the Browns’ betting lounge not open.

Stark Enterprises applied for a physical sportsbook license in Cuyahoga County, for example, and is in a holding pattern unless another company loses its license. Cleveland.com reached out to Stark for comment.

While the regulator’s change may let companies “park” a license, it likely won’t be an anti-competitive issue, said Chris Grove, Partner Emeritus for Eilers & Krejcik Gaming, a leading research firm in the gambling industry.

Just under 98% of bets in Ohio through February were placed on apps, not at physical sportsbooks. And most of those bets were on two apps, FanDuel and DraftKings.

“As the economic appeal for new entrants lessens, their willingness to invest in sports betting or prioritize sports betting lessens as well,” Grove said.

The lack of economic incentives is likely one reason many apps or sportsbooks have not launched yet in Ohio, Grove said.

Another issue is Russia’s continued invasion of Ukraine. Much of the technical supply chain for sports betting, and other digital businesses, is in that region Grove said.

Ohio’s betting companies took in $7.7 billion worth of bets and $935 million of revenue in 2023. So far, they’ve seen year-over-year growth in 2024.

Sean McDonnell is the business reporter for cleveland.com and the Plain Dealer. You can reach him at smcdonnell@cleveland.com.