Ohio lawmakers introduce separate bills to regulate online gambling

Ohio state Sen. Nathan Manning, R-North Ridgeville, introduced Ohio Senate Bill 197 last week and Ohio state Reps. Brian Stewart, R-Ashville, and Marilyn John, R-Richland County, introduced Ohio House Bill 298 this week.  There is overlap with the bills. Both pieces of legislation would regulate online gambling through the Ohio Casino Control Commission and internet gambling would start by March 31. 

Nearly all of the tax proceeds from internet gambling would go to the state’s general revenue fund and 1% would go to the Problem Gambling Fund. Both bills only allow an Ohio casino or racino to be licensed as an internet gambling operator. Someone would have to be at least 21 and physically in Ohio to participate in internet gambling. 

The lawmakers behind these bills say Ohioans are already participating illegally in online gambling.  

“It is important to highlight that online gambling is already occurring in the state of Ohio,” Manning said during his sponsor testimony last week in the Senate Select Committee on Gaming. “It is difficult to quantify an exact number, but it is clear there is significant illegal online gambling going on in the state, as there was illegal sports betting before it was legalized.”

Connecticut, Delaware, Michigan, New Jersey, Rhode Island, Pennsylvania, and West Virginia all have legalized online gambling. 

Senate Bill 197 

The 700-page bill would authorize three types of online gambling — internet gambling, iLottery, and online betting on horse racing. 

The bill levies a 36% tax on an operator’s internet gambling receipts. There would be a $50 million initial fee and a $5 million renewal fee for Ohio casinos and racinos. Manning predicts this could generate at least $500 million per year for Ohio. 

S.B. 197 would move all Ohio gambling regulations under the Ohio Casino Control Commission. This would nix the State Racing Commission and the Casino Control Commission would take over their responsibilities. 

Ohio Sen. Bill DeMora, D-Columbus, questioned the horse racing aspect of the bill.

“I don’t think the Casino Control Commissioner knows anything about how to regulate horse racing,” he said. 

In response, Ryan Soultz, vice president of governmental affairs for Boyd Gaming Corporation, said other states have found a way to have one regulatory body that oversees both. 

Trevor Hayes, vice president of government relations for Caesars Digital, supports the bill.   

“Our experience shows that regulated iGaming provides a significant new source of state tax revenue, provides consumers with a strictly regulated and fair gaming option, and protects vulnerable populations,” he said this week to the Senate Select Committee on Gaming. 

House Bill 298

When compared to the senate bill, H.B. 298 is smaller in scope. It would not allow online Ohio Lottery games nor would it legalize online betting on horse racing. 

“This bill would authorize Ohio to take the next logical step in generating state revenue by authorizing internet gambling in the state of Ohio,” Stewart said this week to the House Finance Committee. “It’s reasonable to take the next logical step, technological step, and allow Ohioans to play these games online, as well as in person.” 

The bill would impose a 28% tax on internet gambling receipts, which is the same as Michigan. 

Stewart and John estimate this could general between $400-$800 million a year in revenue. 

“There’s a lot of things that we want to do in the state of Ohio that require increased revenues,” John said. “This is one way that we can go about expanding the consumer base of players who prefer an online setting.”

Democratic lawmakers raised concerns in committee that this could lead to more people under 21 participating illegally in online gambling.

“If we can bring regulations to this market, then it is my feeling that we will be able to help, hopefully, curb the underage participation,” John said. 

There are more than 250,000 problem gamblers in Ohio and 1 in 5 problem gamblers attempt suicide, said Ohio state Rep. Dani Isaacsohn, D-Cincinnati. This data is from the 2022 Ohio Gambling Survey.

“Where is the line?” Isaacsohn asked. “At what point do we say this isn’t worth it anymore, that it’s not worth the additional revenue that could fund a tax cut or a stadium or whatever else it goes towards.”

John said regulating online gaming could help put measures in place to help people “before they get to the point of making a decision that they can’t return from.”