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Lawmakers in Ohio have reignited the battle over whether or not online casinos should be legalized in the state. Two bills, HB 298 and SB 197, have been introduced to the House of Representatives and the Senate by State House Rep. Marilyn John and Rep. Brian Stewart, and Senator Nathan Manning in a bid to regulate online casinos in the state.
If both bills are passed successfully, Ohio will become the eighth state in the U.S to regulate and legalize online gambling. Two years ago, the state extended its laws to accommodate online sports betting. However, with these two bills, the revenue generated from gambling activities and taxes will remain in the state rather than being lost to offshore platforms. However, these fully licensed online casinos continue to be a big draw for many iGamers due to their ease of use, convenience and the number of games on offer.
Sen. Nathan Manning, who presented SB 197, advocates that by legalizing online casinos and lotteries, the government could realize between $300 million to $1 billion yearly in revenue, noting that the estimated amount Ohioans spend on offshore gambling sites is between $600 million and $2 billion. He argues that the government can bring that number into a controlled, regulated market, which would benefit the economy.
SB 197 also proposes a licensing fee of $50 million, and that operators pay a 36% tax on their revenue. If this bill goes through, Ohio would have the highest iGaming tax rate for an open market in the U.S.
HB 298 also corroborates the fact that the state could benefit from the revenue generated from online gambling, which it has been missing out on since 2009. The bill also proposes that online gambling operators should pay a 28% tax on their revenue, which is lower than the 33% tax rate put on physical casinos.
The proposals have stirred reactions from stakeholders, religious and cultural groups, and casino operators. Some groups believe that the state has a lot to benefit from legalizing online casinos, while others say that the state isn't fully prepared to deal with the outcome of expanding legal gambling.
Companies in support of the bills include MGM and Caesars Entertainment, which are some of the biggest brick-and-mortar casino companies in the country. They are also supported by Fanatics Betting and Gaming, and Brandt Iden, the VP of government affairs at the company, acknowledging that many players already use offshore sites, which don't have any form of customer protection, but by legalizing online casinos, the state can protect its residents and also generate revenue.
Trevor Hayes, who is VP of government relations at Caesars Entertainment, also echoes the same thought. He adds that by legalizing online casinos, the government can know who's placing bets, where the money goes, and who it comes from.
While the bills have been opposed by groups such as the Linder Center for Hope and the Catholic Conference of Ohio, among others, the state hasn't reached a final decision, as neither the Senate nor the House of Representatives has voted on both proposals so far.
Governor Mike DeWine has yet to take a clear stance. He has, however, expressed concern over how the bills might affect gambling behaviour and the convenience of 24/7 casino access, though he has not committed to vetoing either bill .