Ohio Plays Its Ace: New Legislation Moves Buckeye State Closer to Online Casino Expansion
House Bill 96 Would Establish a 15% Tax Rate on Local Online Casinos
Buckeye State Antes Up While Others Fold
Ohio just put its chips in the middle of the table with a bold move to regulate online casinos.
While other states like Indiana, Maryland, and Wyoming folded their hands on similar proposals, earlier this year, House Finance Committee Chair Brian Stewart is going all in with House Bill 96. The bill would regulate the local market for casino games like poker, blackjack, and slots on mobile gambling apps across the state.
This comes as Ohio builds on the momentum from its successful sports betting launch in January 2023. The Buckeye State brought in $143.3 million in tax revenue in the first year. Now, lawmakers want to extend that winning streak to online casino gambling.
“A journey has to start somewhere,” former State Senator Niraj Antani said about his earlier attempt with Senate Bill 312, which was the blueprint for Stewart’s current gambling regulation proposal. That bill ran out of time when the session ended last year.
However, HB 96 picks up where it left off with a structure designed to compete with established markets like Pennsylvania, Michigan, and New Jersey. Those jurisdictions, known as “The Big Three,” have been making casino news headlines with record-breaking monthly and annual figures in recent years
While other states have stalled on discussions around online gambling regulations, Ohio is moving full steam ahead. While New York and Illinois are still stuck in committee debates, Ohio could be the eighth active iGaming market in the US.
What’s in the Bill
Stewart’s proposal would impose a 15% tax rate on gross gaming revenue (GGR), lower than Ohio’s 20% sports betting tax. According to Stewart, it would be somewhere between Pennsylvania’s 52% slots tax and New Jersey’s 15% rate.
Operators would have to ante up big just to get in the game:
- $100,000 application fee
- $300,000 licensing fee
- $250,000 annual contribution to problem gambling services
Each of Ohio’s 11 physical betting casinos and racinos could operate one online bet platform under the bill. This would create a market that could generate an estimated $200-300 million annually in new tax revenue.
Wild Cards and Challenges Ahead
Despite the potential upside, this legislative gamble has several wild cards. Problem gambling concerns are big after Ohio’s gambling helpline saw a 55% increase in calls after sports betting launched. A recent survey found that one in five gambling adults in Ohio is at risk for developing a gambling disorder.
Cash casinos are also worried about cannibalization of their business. But evidence from Pennsylvania shows online betting sites might actually complement physical casinos through cross-promotions and loyalty programs.
The bill’s timing is another risk. With the session ending December 31, 2025, Stewart has a clock to beat. The Study Commission on the Future of Gaming in Ohio released a 354-page report last July but didn’t make formal recommendations on online casinos, citing the complexity and division on the subject.
Playing the Long Game
Despite the challenges, many in the industry see Ohio as the dark horse in the online casino expansion race.
For Ohioans who want to play online poker or virtual slots without traveling to neighboring states, the wait continues. But, with new cards being dealt in Columbus, that wait might not be as long as you think.
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