Ohio iGaming Bill Could Be on the Table Next Month

Ohio is on the verge of a new debate over online gambling as a bill that could legalize online casino games is awaiting attention in the legislature. However, the state also faces a lot of challenges in the months ahead if it wants to join Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia in the iGaming space.

The Ohio Statehouse in Columbus, Ohio. (Source: Experience Columbus)

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The bill, Senate Bill 312, was introduced in September by Sen. Niraj Antani, but it faces significant obstacles in gaining momentum. While the proposal outlines the legalization of online casino games and a taxation structure, the path forward is complicated by a combination of time constraints and legislative resistance.

Related: New iGaming Bill Proposed in Ohio Senate

The bill proposes a 15% tax rate for online gaming, which is 5% lower than the tax currently applied to online sports betting in Ohio. Even though the idea of legalizing online casino games has been floated in the past, this is the first formal legislative attempt, and its first hearing is anticipated to occur in mid-November, when lawmakers return from their break.

The bill outlines a number of fees for operators, including a $100,000 application fee, a $300,000 licensing fee, and an annual $250,000 contribution to a problem gambling fund. These fees mean operators would need to pay over half a million dollars per year to legally operate in the state.

In addition to establishing the tax and fee structure, SB 312 positions Ohio to potentially join other states in allowing multi-state poker pools. Such pools currently exist in states like Delaware, Michigan, Nevada, New Jersey, and West Virginia, and Pennsylvania is expected to join soon. If Ohio's bill passes, the Ohio Casino Control Commission would be tasked with regulating the new industry, overseeing both the taxation and licensing of operators.

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A Long Road Ahead

The chances of SB 312 advancing seem uncertain. The bill, introduced on September 4, is still awaiting assignment to a legislative committee, and it has yet to gain any co-sponsors. Compounding the challenge is Gov. Mike DeWine's opposition to expanding gambling in the state, a stance he has maintained throughout his term, which runs until January 2027.

Despite the governor's resistance, there are pockets of support within the legislature. In July, Ohio Republicans Jay Edwards, Jeff LaRe and Cindy Abrams expressed their backing for online casino gambling and a digital lottery, but also emphasized the need for careful consideration to avoid negatively impacting physical casino establishments.

Sen. Antani's bill must be debated before the upcoming lame-duck session at the end of the year. A lame-duck session occurs between the conclusion of the November elections and the start of the new legislative session, during which outgoing legislators may handle unfinished business.

Given that the senator is in his final term and cannot seek re-election, this legislative window is crucial. If the bill is not discussed during this period, it will enter 2025 without a sponsor to carry it forward. Essentially, Sen. Antani's opportunity to push for the bill's passage is limited to the next two months.

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