Lawmakers in Ohio Pondering Legislation to Legalize Web-based Gambling Establishments
Updating Ohio's Gambling Landscape: The Push for Online Casinos
Representative Brian Stewart is spearheading an initiative to sanction online casinos within Ohio. This move aims to introduce legal online poker and other casino games in the Buckeye State. With tax revenue expansion a priority following scrapped gambling tax increases from Gov. Mike DeWine's budget, Stewart seeks new financial avenues, inspired by last year's recommendations from the Study Commission on Ohio's Gaming Future.
Though exercising caution, Reps. Jay Edwards, Jeff LaRe, and Cindy Abrams advocated that such gaming types, under the right regulatory framework, could flourish with minor impact on current systems. Other states have reported substantial increases in tax revenues and higher gambling participation, allocating some funds to K-12 education systems, a benefit not negligible to Ohio.
Ohio's Current Casino Scene
Currently, Ohio maintains 11 land-based casinos, netting approximately $1.1 billion in 2024. The budding demand for Ohio online casinos is palpable, with their absence leading to locals resorting to unregulated platforms in high numbers. Estimated annual revenue for sweepstakes casinos and other unlicensed operators in Ohio amounted to $3.7 billion last year.
Such booming numbers in neighboring states that have legalized online gaming — Pennsylvania and Michigan — further emphasize the potential revenue Ohio could reap. For instance, Pennsylvania yielded $1.5 billion in online casino revenue in 2024, while Michigan generated $1.2 billion in online gambling income in its first year after 2021 legalization, with lower tax rates leading to around $500 million in state collections.
The Buckeye State's Betting Habit
The emergence of Ohio sports betting in 2021 and the introduction of the first online sportsbooks in 2023 has fueled a hunger for wagers among Ohioans. Despite legalization, unlicensed operators overshadowed the revenue generated, with over $1.5 billion in 2024. Texas, without legal online sports betting, is the only state to see more revenue from unlicensed operators.
With an initial 20% tax on sports betting set to rise, legalizing online casinos could offer an alternative route for bolstering state funds. A previous casino bill by former Senator Niraj Antani proposed tying licenses to the state's 11 casinos and racinos, although it stalled. Stewart might find success in expediting the process of legalizing online casinos as compared to the prolonged legalization of sports betting, which took over 3 years and 30 bill iterations.
[1] Governor Mike DeWine's budget[2] Study Commission on the Future of Gaming in Ohio[5] Revenue data from Pennsylvania and Michigan gaming commissions.
- In the Buckeye State, Representative Brian Stewart is steering an initiative to legalize online casinos, intending to include online poker and other casino games.
- Ohio currently operates 11 land-based casinos, yet the demand for online casinos is significant, with locals turning to unregulated platforms due to their absence.
- The absence of Ohio online casinos resulted in approximately $3.7 billion being funneled into annual revenue for sweepstakes casinos and other unlicensed operators in Ohio last year.
- States like Pennsylvania and Michigan, which have legalized online gaming, have reported substantial increases in tax revenues and gambling participation.
- In 2024, Pennsylvania yielded $1.5 billion in online casino revenue, while Michigan generated $1.2 billion in online gambling income in its first year after 2021 legalization, with lower tax rates leading to around $500 million in state collections.
- Ohio's emergence of sports betting in 2021 and the launching of the first online sportsbooks in 2023 has fostered a growth in wagers among Ohioans.
- Facing an increase in the tax on sports betting, legalizing online casinos could serve as an alternative avenue to augment state funds, mimicking the expedited legalization process of sports betting compared to the 30 bill iterations it took previously.
