Ohio Introduces Online Casino Bill, Would Allow Up To 11 Apps

Legal online casino expansion has been stuck at seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — all year. But a new possible contender to become the eighth state has suddenly emerged, with Ohio now considering the legalization of iGaming.

On Wednesday, Ohio state Sen. Niraj Antani introduced a bill aiming to bring online casinos to the Buckeye State. The 146-page bill seeks to legalize iGaming in Ohio and create a regulatory framework under the Ohio Casino Control Commission.

The commission would be responsible for overseeing the launch of the online gaming platforms, monitoring activities, and determining which games would be available for play. Under the proposed legislation, Ohio’s 11 casinos and racinos would each be permitted to offer one online casino app.

Ohio has witnessed significant growth in its gambling landscape over the past 15 years, thanks to progressive legislation and amendments that laid the groundwork for the industry’s expansion. It began in 2009, when voters passed a constitutional amendment allowing brick-and-mortar casinos in the state. This marked a major turning point for legalized gambling in Ohio, transforming it into a lucrative business hub for casinos and racetracks.

Then, in 2021, Antani co-sponsored a successful bill to legalize sports betting. That bill passed in December 2021.

If Ohio’s legislature is able to move similarly with iGaming, it would instantly become a major player in the iGaming space. It is the seventh largest state by population at a little under 12 million, and would become the second biggest with legal online casinos.

A push toward iGaming

Antani’s new push for online casinos, following recent support from a few of his fellow lawmakers in the House, comes amid clear signs that iGaming provides significant tax revenue to the states that regulate it. The seven states that currently offer legal iGaming have seen substantial economic benefits.

Michigan saw $2.3 billion in total iGaming gross receipts and gross sports betting receipts ($1.9 billion from iGaming and $420.4 million from online sports betting) in 2023. This was an 18.3% increase over 2022. Neighboring Ohio could expect numbers in the same ballpark as the market matures.

Despite the potential benefits, the road to iGaming legalization in Ohio is loaded with obstacles. The Ohio legislature is scheduled to return for a brief lame-duck session after the November 2024 elections. However, given the legislative calendar and political dynamics, it’s unlikely that serious iGaming discussions will take place this year.

Furthermore, Antani won’t be present to shepherd the bill through the Ohio Senate. Due to term limits, he is set to leave office at the end of this year.

Then there’s the issue with Ohio Gov. Mike DeWine. He’s never been an enthusiastic supporter of gambling. Although he approved sports betting legislation in 2021, he quickly expressed regret afterward. The following year, DeWine pushed to increase the sports betting tax rate from 10% to 20%. He also sought to limit what he considered overly aggressive advertising.

Ohio lawmakers believe it will be challenging to secure DeWine’s approval for any bill that legalizes online casinos. He’s not set to leave office until the end of 2026.