We Spoke with Ian Zerafa About How Close Ohio Is to Legalizing Online Casinos
Trending
One of the greatest entertainment paradoxes is the USA’s relationship with gambling - and casino gambling in particular. The word casino conjures up images of glittering high-end destinations in Las Vegas with every kind of fun on tap, from theatre shows to live music events, incredible food and cocktails flowing freely. However, despite recent research that shows 62% of Americans find gambling acceptable and that 57% have participated (with around a third having gambled at a physical casino), real money online casino gambling is still strictly off-limits for the vast majority.
When you turn the focus on Ohio, the facts are even starker. Gambling is a large part of the state’s entertainment industry, with over 80% of the population partaking in some form of gambling. So far this year, the Ohio Casino Control Commission reports casino (table and slots) revenue of $808,678,176.00. While the state was a relatively late adopter of legalizing gambling (2009), it now sits in fourth position on a ranking of states where gambling is most popular. Outflanked only by Nevada, Pennsylvania and New York, the state seems like an ideal candidate for legalizing online casino gambling.
We spoke with Ian Zerafa, an industry expert at independent review platform Casino.org, to find out the chances of Ohio legalizing online casinos and whether it’s a near-term possibility or a distant dream.
MorningJournalNews.com
Hi Ian, welcome to our publication. It could be an exciting time in Ohio for the possibilities around online casino gambling, couldn’t it?
Ian Zerefa
It certainly could with the election of Amy Acton to Governor. She has previously said she sees iGaming in a positive light and as a way to fund her priorities, like lowering the cost of living, supporting schools, childcare, and property tax relief. She has also said she would want tight guardrails to ensure a strong regulatory environment, protect minors and young people, and limit advertising.
Well, that seems like a foregone conclusion then, doesn’t it?
Personally, I wouldn’t be quite so sure about it. At Casino.org, we have been in the business of reviewing and writing about legal online casinos for over three decades, and nothing is ever straightforward. The steps to create a regulated market can be arduous, and that is before you consider potential lobbyists (from both sides of the equation). However, Amy Acton did say in her campaign that consumers “should be able to spend their money how they please”. That does sound like a politician being pragmatic, and it will be interesting to see how it unfolds.
However, gambling regulation is always unpredictable, and what happens in Ohio is no exception. Earlier this year (in July, to be precise), Ohio lawmakers introduced a bill to ban betting online on sports in the state, and while this is highly unlikely to succeed, it does demonstrate that this is a form of entertainment that evokes high emotions and responses even at the highest level.
What are the advantages of a regulated market?
We are big advocates for legal, regulated markets because, when they are set up well, they prioritize consumer protection. They take the position that if people are going to gamble, they should be able to do so safely, and they build from that premise. This means that only the most reputable casino operators can get a license. Ohio residents are almost certainly currently playing on offshore sites where they have no protections and are open to being scammed or treated unfairly.
Each jurisdiction that regulates online casino gambling varies in how it does so and what is and isn’t legal. This can include minimum ages, available games, self-exclusion options, payments, and how advertising and promotions can work. There is nothing prescriptive about regulating online casinos, and as each market evolves, it learns from what other states and jurisdictions have done.
You can see this if you look at developments in Canada, where Alberta has come out with ‘safety first’ regulation and Ontario is now looking at its responsible gambling options, which are very robust, but maybe not as robust.
What would it take for Ohio to launch a commercial online casino market?
Ohio currently has the core pieces needed. There is an existing gambling regulator, commercial casinos, and a functioning online sports betting market. Operators in the sports betting market, like DraftKings and BetMGM, already offer casino products that could be made available. It all comes down to politics. So it starts with a bill, but it has to be enacted into law.
Ohio lawmakers are considering online casino legalization, and it was recently reported that they may use retail casino rewards to bring land-based companies on board. Brian Stewart (a co-sponsor of House Bill 298, which stalled in committee) discussed blocking online casino promotional credits but letting operators offer rewards that could be redeemed at Ohio casinos and racinos. He also wants iGaming licenses to be limited to existing operators.
Well, that is a different approach. Interesting that the bill is still alive, so it could possibly still pass.
Yes, there are several possibilities. The fact that Stewart estimates that Ohio iGaming could generate up to $400 million a year, and even state fiscal analysis says hundreds of millions of dollars, has to be an attractive possibility for a state looking to bring change. After the Democrats flipped the state, they are going to need to find ways to fund their election promises. But that is just my gut feeling. I am not a political expert but a gambling one. Interestingly, the prediction market Kalshi (which claims to want to turn every question into an opportunity) isn’t currently running a market on whether or when Ohio will legalize online casinos, which suggests this isn’t top of mind for most people.
But what is your gut feeling?
When I look at online casinos, I try not to rely on gut feeling; I gather relevant data and make decisions based on it. At Casino.org, we use a 25-step review process before coming up with recommendations about which online casinos we consider to be the best. Right now, there just isn’t enough data around to speculate what will happen in Ohio. I’m afraid we’ll all need to keep watching and see what unfolds.
My gut feeling is that it would make sense to introduce a regulated commercial market, as it keeps players safe and moves them away from unregulated gambling, but sense doesn’t always prevail.
Thanks for your input and the caution. In a state where gambling is so prevalent, it is good to get an unbiased opinion.