Ohio online casinos could be legalized following new bill

Lawmakers in Ohio are making significant strides toward the legalization of online casinos through the introduction of Senate Bill 197. This crucial legislation aims to legalize a spectrum of digital gaming options including online slots, interactive table games—such as poker—parimutuel wagering, and iLottery initiatives.

Introduced by Sen. Nathan Manning, the bill has garnered notable bipartisan support, reflecting a changing attitude toward online gaming. Republican House Speaker Matt Huffman emphasized that the public has “sort of turned the corner” regarding online gambling, signaling increased acceptance of its related benefits.

Democrat Nickie Antonio highlighted the success of other states, stating, “Certainly, other states have shown us that when they take the dollars and allocate them to consistently underfunded programs, there’s a significant positive impact.” This underscores the potential for Ohio to leverage online gambling revenue for community initiatives and public services.

Should the legislation pass, Ohio’s four established brick-and-mortar casinos—Jack Cleveland, Hollywood Columbus, Hard Rock Cincinnati, and Hollywood Toledo—alongside seven licensed video lottery racinos, will be eligible to apply for iGaming licenses, creating a unified digital platform for gaming.

Interestingly, Jack Entertainment, the owner of Jack Cleveland Casino, has previously expressed concerns about the expansion of online casinos, arguing that it could divert foot traffic away from physical locations, ultimately impacting local economic activity.

The Revenue Potential of Online Casinos

According to estimates, legalizing online casinos in Ohio could generate over $1 billion annually. In the past year, land-based casinos and racinos already brought in $1.1 billion, and states that have embraced online gambling show similar trends. For instance, Pennsylvania’s online casino market, which became legal in 2019, produced $1.5 billion in revenue last year alone. With a competitive tax structure—54% on slots and 36% on sports betting—Pennsylvania collected approximately $2.66 billion in tax revenue and fees from its gambling activities in 2024.

New Jersey’s online casinos posted more than $2 billion in revenue last year. Considering Ohio’s larger population—approximately 2 million more residents than New Jersey—the state could potentially see comparable financial outcomes post-legalization.

The proposed bill includes a substantial licensing fee of $50 million, with an additional $5 million required for renewal every five years. A tax rate between 36% and 40% will further contribute to state coffers. Notably, 99% of the revenue generated will be directed toward the Ohio General Fund, while the remaining 1% will support programs aimed at combating problem gambling.

Addressing Unregulated Markets

Currently, absent any legislation, a significant portion of Ohio residents are engaging with unregulated gaming platforms. Last year, it is estimated that sweepstakes casinos and other unlicensed operators generated an astounding $3.7 billion in revenue from Ohio users alone.

Data from states that have legalized online casinos confirm that players are less inclined to gamble on unregulated sites. In Michigan, for example, licensed operators have seen revenue double that of unregulated casinos, such as sweepstakes. Similar trends are evident in New Jersey and Pennsylvania, where legal casinos consistently outperform their unregulated counterparts.

As it stands, only seven states in the U.S. have operational online casinos. Should Senate Bill 197 be enacted, Ohio will emerge as the eighth state by next year. The bill is poised to move to the Senate Select Committee on Gaming for further evaluation, marking a pivotal moment in the state’s gaming landscape.

These developing trends in Ohio highlight the ongoing evolution within the gambling industry, shedding light on the balance between regulatory oversight and the economic benefits of embracing online gaming.

In summary, Ohio stands on the brink of a transformative change that could not only revitalize its gaming market but also strategically redirect funds to bolster critical public initiatives. As the situation evolves, all eyes will be on the legislative proceedings that could effectively reshape Ohio’s gambling future.

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Adam Roarty is a seasoned writer with extensive experience in the gambling sector. With five years of dedicated content writing and editorial work for prominent platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News, Adam brings a wealth of knowledge focused on sports betting and online gambling trends.