Online casinos could be legalized in Ohio soon due to increased momentum following the introduction of two separate bills this month. Sen. Nathan Manning introduced Senate Bill 197 to the Ohio General Assembly, while Rep. Marilyn John and Rep. Brian Stewart brought forth House Bill 298. The push for online casinos in the Buckeye State comes with the goal of increased tax revenue and job creation.
Both Senate Bill 197 and House Bill 298 require users to be 21 years or older. Senate Bill 197 restricts weekly deposits to $500 and gaming sessions to five hours. House Bill 298 does not allow promotional credits at online casinos. While these are strict conditions, projected state tax revenue still looks promising.
Sen. Manning projects approximately $500 million in annual tax revenue from online casinos with Senate Bill 197. Rep. Stewart has a more optimistic projection of up to $800 million from iGaming with House Bill 298. In addition to tax revenue, online casinos can create more jobs because technology for live dealer games would need to be developed.
Neighboring state Pennsylvania has already reaped the rewards of online casinos, earning over $900 million in tax revenue. There were also new jobs created, specifically in technology and marketing, as operators needed high-end tech along with promotions to drive interest in their platforms.
The momentum is building for Ohio to benefit similarly, but there are some detractors to iGaming legalization in the Buckeye State.
At the May 20th hearing when House Bill 298 was introduced, Democratic Rep. Dani Isaacsohn warned how online gambling could have mental health consequences, explaining that gambling has the highest rate of suicide among addictions.
However, Senate Bill 197 involves 1% of tax revenue allocated to problem gambling to emphasize player safety and responsible gaming. If projections of over $500 million are accurate, that works out to $5 million towards addressing problem gambling.
Despite optimistic projections for tax revenue along with a commitment to responsible gaming, the Ohio iGaming market could be challenging for new operators.
Ohio’s online casino market would have high tax rates. Senate Bill 197 proposes to tax existing operators at a 36% rate. This includes brick-and-mortar casinos in Ohio that would feature an online platform.
But newcomers would be taxed at 40%, the highest rate for online casinos in the United States, ahead of Pennsylvania. New operators would also have to pay a licensing fee of $100 million in initial fees and $10 million in renewal costs, twice as much as existing platforms.
House Bill 298 would be a bit more appealing for operators, featuring a 28% tax rate, which is comparable to what is seen in Michigan. However, some of the most reputable operators are already established in the Buckeye State, so they won’t have to deal with increased licensing fees and tax rates.
BetMGM has a brick-and-mortar location in Ohio with MGM Northfield Park, so they don’t have to pay double the licensing fees and tax rates available to newcomers. As one of the leading operators, there’s a chance that BetMGM could secure a strong position in market share if online casino legalization comes through.
This doesn’t mean that BetMGM will necessarily secure top spot in Ohio, but it gives them a high floor when it comes to overall performance.
If either Senate Bill 197 or House Bill 298 gets approved, the goal is to have online casinos up and running in Ohio by spring 2026. With two bills being introduced in the same month, the expectation is that it’s only a matter of time.
Bill 197 is more likely to pass because it’s broader in scope, legalizing three types of online gaming: online casinos, iLottery, and online betting on horse racing. With higher tax rates imposed by Bill 197 as well, this makes it the likely preferred option for the state as a whole.
