Ohio iGaming Legislation Now on the Table

Article by : Erik Gibbs Feb 23, 2024

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In a landmark move, Ohio lawmakers initiated discussions on the legalization of online casinos during the inaugural session of the Study Commission on the Future of Gaming in Ohio this past Tuesday.

Led by Representative Jay Edwards and Senator Nathan Manning, the eight-member committee plans to delve into various aspects, including iLottery, racinos/charitable gaming, sports betting, and daily fantasy sports in subsequent meetings.

Despite Edwards’ anticipation that legislation may not materialize this year, the committee aims to lay the groundwork for potential future actions. The Tuesday hearing, lasting approximately two hours, lacked live streaming or recording, with key insights provided by Matthew Schuler and Michelle MacGregor.

According to written testimonies from industry representatives, the committee is addressing inquiries about iGaming’s scope, revenue impact and potential issues related to problem gambling.

In the discussion about the legalization of online casinos in Ohio, MacGregor highlighted the existing regulatory framework and technology in the state, drawing from the launch of online sports betting on January 1, 2023.

An American Gaming Association study estimated the illegal iGaming market in Ohio at a substantial $621 million in annual gross gaming revenue.

Ryan Soultz from Boyd emphasized the policy consideration behind legalizing online sports betting in Ohio—curbing the use of unregulated offshore sites. Soultz argued that the same rationale supports the regulation of online casinos in Ohio, supported by evidence from a Google search for “Ohio online casino,” revealing an illegal offshore platform at the top.

MacGregor suggested that legalizing online casinos in Ohio could generate annual tax revenue between $205 million and $410 million.

DEA Growth projected $255 million in annual tax revenue for Ohio online casinos with a 20% tax rate. Boyd proposed a tethered model and suggested tax rates of 15% or 17.5%.

Charmaine Hogan from Playtech stressed regulated iGaming’s crucial role in addressing problem gambling, advocating for a comprehensive approach using data-driven technology for harm prevention.

She emphasized the need for operators to employ analytics for early detection and personalized interventions based on observed behavior. In contrast, the Problem Gambling Network of Ohio chose not to take a position on the potential legalization of online casinos in the state.

Derek Longmeier, representing the network, neutrally requested that any future exploration of gaming expansion in Ohio include presentations from the Ohio Department of Mental Health and Addiction Services, gambling treatment providers, and individuals with a gambling disorder in long-term recovery.

Both iDEA Growth and Boyd referenced a recent Eilers & Krejcik study highlighting the positive impact of iGaming in states with online casinos. B

Boyd, the operator of Belterra Park in Cincinnati, emphasized that all iGaming states saw increased total brick-and-mortar revenue, with higher growth rates compared to non-iGaming states.

The study suggested that adding iGaming also contributed to higher brick-and-mortar casino revenue. Boyd asserted that iGaming has the potential to boost both state and existing gaming revenues, viewing it as a natural evolution in the industry.

Ryan Soultz, Boyd’s VP of Governmental Affairs, stressed its complementarity to land-based operations, citing positive outcomes from their Stardust gaming platform in Pennsylvania.