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Ohio might soon join the list of states allowing legal online casino gaming, also known as iGaming. The new move is being led by Rep. Brian Stewart, who wants to bring this digital gaming option to people’s phones and computers across the state. This step is expected to open up a new source of money for Ohio, without increasing existing taxes.
Why Ohio Is Moving Towards Online Casinos
Ohio lawmakers recently removed some tax hikes that were part of the Governor’s earlier budget plan. For example, the idea of doubling the sports betting tax from 20% to 40% was taken out. Now, to balance the loss in revenue, Rep. Stewart is working on a bill to legalize online casinos as an alternative way to raise funds.
In his words, they are trying to “allow wider access to casino games through mobile devices and computers.”
This isn’t the first time online casinos have been discussed. In 2024, former Senator Niraj Antani had proposed a similar bill, tying licenses to Ohio’s 11 existing casinos and racinos. However, it didn’t pass. Now, with Stewart’s support and stronger backing, the idea is back on the table.
What the Study Commission Said
Ohio’s push for iGaming is based on a two-year-long study by the Commission on the Future of Gaming in Ohio, which wrapped up in July 2024. The members of the commission, including Reps. Jay Edwards, Jeff LaRe, and Cindy Abrams, supported the idea but advised that it should be done with proper rules and care.
The commission found:
- Online casinos won’t hurt land-based casinos.
- Instead, they can bring new players into the gambling space.
- States with online casinos saw a big rise in tax income.
What Other States Have Achieved
The success stories in other states show the huge money potential of online casinos:
- Pennsylvania made $1.5 billion from online casinos in 2024. It collected $2.66 billion in total gambling taxes due to high rates 54% on slots and 36% on sports betting.
- Michigan, with a lower tax rate (20-28%), still made $1.2 billion in online casino revenue and around $500 million in taxes.
Ohio wants to follow the same path. Some lawmakers are even thinking of using the tax money from iGaming to support schools and education.
Why This Could Help Ohio’s Budget
In 2024:
- Ohio’s 11 casinos made $1.1 billion.
- People in Ohio bet $8.9 billion on sports, earning operators about $899 million.
- But here’s the surprise illegal or offshore online sites made around $3.7 billion from Ohio users, according to a report by Yield Sec.
That means there’s a lot of money already being spent on unlicensed platforms. Legalizing online casinos can help bring that money back into the state, in a safe and controlled way.
Concerns From Casino Owners
Some owners of Ohio’s casinos and racinos are worried. They think online casinos might reduce the number of people visiting their locations. Some lawmakers have also raised concerns about growing the gambling market too fast or harming the state lottery.
That’s why Stewart’s bill is focusing on protecting physical casinos while also regulating the online ones. He wants to stop the money going to illegal operators and keep players safe by offering secure options.
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