Paving the Way for Online Casinos in Ohio: A New Revenue Stream
Potential legislation could introduce online casinos in Ohio
Ohio is edging closer to the legalization of online casino gaming, thanks to a bill being drafted by Representative Brian Stewart, head of the House Finance Committee. This innovative move targets generating new state revenue without flexing the tax muscle.
In line with this financial revision, the proposed bill considers allowing Ohioans to enjoy casino games on their smartphones and computers.
The legislation is part of a broader strategy to revamp Ohio's budget without imposing unpopular tax hikes. Rather, legalizing online gaming appears as a strategic means to acquire additional funds in sync with contemporary consumer trends.
A two-year study on iGaming and iLottery, instigated via a budget clause, laid the groundwork for this bill. Commissioned in 2020, the study concluded that legalizing online gambling in other states has bolstered tax revenue thanks to robust public demand. Supporters of the findings include legislators like Jeff LaRe, Cindy Abrams, and former Rep. Jay Edwards.
The commission's findings suggest that online gambling doesn't cannibalize land-based casino businesses; instead, it tends to attract a fresh audience seldom or never associated with physical gambling establishments. Stewart's bill taps into these findings, aiming to grow the gambling industry while preserving land-based venues.
Despite the prospective benefits, casino and racino owners in Ohio have displayed apprehension, fearing a potential decrease in foot traffic due to the advent of online casinos. Lawmakers assure them that they'll collaborate with stakeholders to strike a balanced solution that safeguards existing gaming businesses.
Moreover, there is a growing sentiment that the revenue from online casinos could serve purposes beyond just boosting the budget. Some argue that these funds could support K-12 education, particularly schools that struggle to make ends meet.
Timing is crucial for Stewart, as the Ohio Senate reviews a revised House budget that's rid of proposed tax hikes on sports betting, marijuana, and cigarettes. However, the new version omits an income tax reduction, which had been a constant feature for the past seven years. Stewart's bill may offer a politically safer approach to filling revenue gaps without imposing additional tax hikes or cuts to crucial services.
Enlightening Facts:
- A prior commission found that online gambling expands the gaming market without adversely impacting land-based venues 1[3]4
- Stewart's proposal might direct tax money from iGaming towards public education 3
- House Republicans have already abolished several tax hikes from the budget, including those on sports betting 6
[3]: https://www.forbes.com/sites/johnkoetsier/2022/02/18/why-ohio-could- legalize-online-gambling-this-year-as-many-as-10-states-could-follow-suit/?sh=7a1263635830
- Representative Brian Stewart, chairman of the House Finance Committee, is drafting a bill to legalize online casino gaming in Ohio, aimed at generating new revenue without increasing taxes.
- The bill proposes allowing Ohioans to play casino games on their smartphones and computers, aligning with contemporary consumer trends in gaming.
- The bill is part of a broader strategy to revamp Ohio's budget, without imposing unpopular tax hikes, and to acquire additional funds in sync with the gambling industry and fintech trends.
- A two-year study on iGaming and iLottery conducted by a commission supported by legislators like Jeff LaRe, Cindy Abrams, and former Rep. Jay Edwards, found that legalizing online gambling in other states has boosted tax revenue thanks to robust public demand.
- Stewart's bill aims to grow the gambling industry while preserving land-based venues, tapping into findings that online gambling tends to attract a fresh audience seldom or never associated with physical gambling establishments.
- Casino and racino owners in Ohio have expressed apprehension about the potential decline in foot traffic due to the advent of online casinos, but lawmakers assure them that they'll collaborate with stakeholders to find a balanced solution that safeguards existing gaming businesses.
