Ohio is on the brink of legalising online casinos, with the introduction of Senate Bill 197, spearheaded by Senator Nathan Manning.
Designed to enhance state revenues, the Bill proposes a strategic shift following Governor Mike DeWine’s unsuccessful bid to increase sports betting taxes.
SB 197 positions Ohio to join the select group of states that have already opened their doors to online casinos, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia. The Bill has garnered unexpected support compared to past efforts.
A key feature of the legislation is an ambitious tax structure. Operators using their own platforms would face a 36% tax, escalating to 40% for partnerships with external operators like FanDuel or DraftKings.
Should it pass, Ohio’s tax rate would be among the highest nationally, rivalling Pennsylvania’s 36% and surpassing states like Michigan, Connecticut and New Jersey, where rates range from 15% to 28%.
iGaming would be regulated by the Ohio Casino Control Commission, mirroring the oversight of online sports betting. It restricts licences to existing casino and racetrack operators, each limited to a single online platform. The Bill also mandates players to be aged at least 21 and physically present in Ohio.
The financial framework includes a $50m initial licence fee and a $5m renewal charge, with 99% of revenues directed to Ohio’s General Fund and 1% to the Problem Gambling Fund.
The Bill also proposes halving the retail sports betting tax rate and legalising online lotteries and horse racing bets.
Bill SB 197 is currently under review by the Senate Select Committee on Gaming, marking a crucial phase in Ohio’s journey towards online casino legalisation.
