Ohio Senator Introduces Online Casino, Lottery, And Horse Racing Bill

A sweeping bill introduced in the Ohio legislature by state Sen. Nathan Manning would bring online casino, online lottery, and online pari-mutuel wagering on horse racing to the state.

Senate Bill 197 would allow all of the above, as well as consolidate regulatory authority under the state’s Casino Control Commission.

Under the proposal, only current Ohio casino operators and horse racetrack owners could obtain internet gambling licenses, with each operator limited to one online platform. License fees would be substantial – $50 million for an initial license and $5 million for renewals.

The tax rate would also be higher than most other states with iCasino, at either 36% or 40%, depending on ownership structure. If a casino or racetrack went at it alone, the 36% tax rate would apply. If it partnered with an outside source, such as DraftKings or FanDuel, the tax rate would go to 40%. Either way, 99% of proceeds would go to Ohio’s General Revenue Fund and 1% to problem gambling programs. 

The bill also proposes a regulatory restructuring by ditching the Ohio State Racing Commission and transferring its duties to the Casino Control Commission. Regulation of charitable gaming and sweepstakes terminal devices would move from the Attorney General’s office to the Commission by January 1, 2027.

Beginning limits

For consumers, the legislation would require patrons to be 21 or older and physically located in Ohio to participate in online gambling. All online wagers would require accounts with default weekly deposit limits of $500 and time limits of five hours, though users could adjust these limits.

In an effort to potentially limit brick-and-mortar moaning, the bill would reduce the tax on in-person sports betting from 20% to 10%, beginning next January.

The legislation also creates consolidated gaming employee licensing so workers across multiple gambling sectors would only need one occupational license.

For the state lottery, the bill allows for online lottery games but prohibits electronic versions of current draw games like Pick 3 and Classic Lotto in the first year, while barring the online lottery from resembling casino games or sports betting.

The bill has been referred to the state’s Select Committee on Gaming.

The bill comes on the heels of Rep. Brian Stewart, the Republican chair of the House Finance Committee, announcing he was planning on bringing a House bill for online gambling to the table.

Senate President Rob McColley told the Statehouse News Bureau that iGaming and iLottery are being looked at as the budget process continues in Ohio.

“I think there’s a different tone and tenor about some of these things than maybe there was 10 years ago. I think a lot of times Ohioans want to have a little bit more choice as to how they spend their money and spend their recreational time. I think it’s something we’re going to talk about,” McColley said.

“The House put kind of open-ended aspirational language in the budget. We’re having conversations with them as to what they actually meant by that. And so we’ll see where we end up.”