Ohio Eyes Online Casino Legalization, Big Revenue

Ohio is poised for a major shift in its gaming landscape as lawmakers actively consider new legislation that could redefine the state's casino industry. The evolving rules and revenue potential point to a future where online gaming becomes an integral part of Ohio's economic framework.

Key Takeaways

• Ohio lawmakers are reviewing bills that could legalize online casinos.
• The proposed legislation may generate between $400 million and $800 million in annual tax revenue.
• Distinct provisions such as a flat tax on gross gaming revenue and a ban on sweepstakes casinos highlight the legislative differences.

Ohio lawmakers are currently reviewing a second bill for legalizing online casinos, which comes on the heels of proposals aiming to harness digital gaming revenues. The proposed measures are not only set to create a lucrative market but also to allow existing brick-and-mortar casinos and racinos to apply for online gaming licenses, thereby integrating traditional and digital formats. One of the bills, introduced by Rep. Stewart, suggests a flat tax rate of 28% on gross gaming revenue, while its counterpart proposes a renewal fee of $10 million compared to $5 million in the Senate version. Notably, HB 298 includes a stringent provision to ban sweepstakes casinos, a move rooted in concerns over their legality, and it clearly classifies certain online sweepstakes as illegal unless expressly allowed by law. Meanwhile, the Senate bill expands the scope of potential gaming formats by including online lottery and digital parimutuel betting, underscoring divergent approaches as other states also consider similar bans on social gaming platforms amid burgeoning iGaming expansions.

These legislative discussions are setting the stage for significant shifts in how gaming revenue is generated and regulated, positioning Ohio as a potential leader in the evolving legal framework for online casinos.