Ohio Lawmakers Look To Legalise iGaming – iGaming Post

Ohio’s legislative landscape is poised for a significant transformation with the introduction of House Bill 298, a pioneering effort to legalize iGaming across the state. Spearheaded by House Finance Committee Chair Brian Stewart, this initiative represents a logical evolution following the earlier legalization of casinos and online sports betting. The proposed legislation aims not only to reshape Ohio’s gaming industry but also to generate substantial revenue while addressing the pervasive issue of illegal gaming activities.

Establishing a Regulated Framework for iGaming

House Bill 298 seeks to implement a robust regulatory framework for iGaming in Ohio, allowing residents to engage in online casino games within a legal and controlled environment. The essence of this legislation is to ensure that only licensed operators can provide online gaming services, thereby enhancing consumer protection and safeguarding against malpractices.

Licensing Requirements: A Focus on Local Operators

Under the proposed legislation, eligibility for iGaming licenses will be restricted to companies that currently operate casinos and racinos within Ohio. This restriction is strategically designed to ensure that only established operators, already familiar with the state’s regulatory landscape, manage online gaming activities. Crucially, out-of-state operators will be excluded from entering the Ohio market, thereby protecting local businesses and ensuring comprehensive oversight.

Financial Structure: Initial Investments and Taxation

The financial framework outlined in House Bill 298 incorporates a substantial initial licensing fee of $50 million, complemented by an annual renewal cost of $10 million. This financial barrier serves to attract only serious and capable operators into the market. Moreover, the bill proposes a competitive tax rate of 28% on iGaming revenue, mirroring the successful tax structure currently in place in Michigan, a neighboring state recognized for its well-established iGaming environment.

Projected Revenue Generation: A Boon for Ohio

Supporters of House Bill 298 are enthusiastic about its potential to generate significant revenue for the state, with estimates suggesting that iGaming legalization could yield between $400 million and $800 million annually. These projections underscore the vast economic potential of a regulated iGaming industry in Ohio.

A central motivation behind the introduction of this legislation is to combat the rampant illegal gaming market within Ohio. Legislative discussions have uncovered data indicating that Ohioans are estimated to spend up to $6 billion on iGaming annually, with approximately 85% of that activity funneled through unregulated channels. By legalizing and regulating online gaming, lawmakers aim to redirect this substantial spending into a controlled and secure environment, thereby enhancing consumer safety and generating critical tax revenue for the state.

Conclusion: A Progressive Step Forward

As Ohio stands on the brink of embracing a regulated iGaming framework, House Bill 298 represents a forward-thinking approach to modernize the state’s gaming industry. By prioritizing local operators, establishing a firm financial structure, and aiming to capture substantial revenue from illegal activities, this legislation holds the promise of not only enriching the state’s coffers but also ensuring a safer gaming experience for all Ohioans.