Ohio Lawmakers Consider Online Gambling to Boost State Revenue

legalize online casino gambling across the state. The measure would permit Ohioans to wager on games such as slots, poker, and roulette from their devices.

ers cite tax benefits; critics warn of risks to casinos and communities

Proponents argue the move would reclaim significant lost revenue. When voters approved brick-and-mortar casinos in 2009, the state largely missed out on associated tax income. ers say this bill could help fill that gap.

“With Ohio’s large, growing market, we believe that iGaming can contribute more than $600 million in annual tax revenue,” said Cesar Fernandez, head of government relations for FanDuel. “And that’s net new tax revenue for the state.”

Illegal market already thriving, say advocates

Many who testified suggested that the bill would simply regulate activity that is already happening underground. Scott Ward of the Sports Betting Alliance estimated that “$5 billion [is] being bet currently in the state of Ohio today in illegal online casino gaming.”

He and others emphasized that most s of legal platforms would be those already gambling online through unregulated sites.

Concerns over cannibalizing existing casinos

Opponents warn the bill could undercut Ohio’s physical casinos. With nearly all sports betting now happening online, some worry casino traffic could suffer the same fate.

Ryan Soultz of Boyd Gaming, which operates both online and in-person facilities in other states, pushed back on that notion.

“I can tell you that if we thought this was a threat to our brick and mortar business, I wouldn’t be here today to speak on this bill. In fact, we’d be opposing it,” Soultz said.

But Mark Stewart, head of the National Association Against IGaming, disagreed. Representing groups like Cleveland’s JACK Entertainment and the Cordish Companies, Stewart stressed the economic difference between online and in-person operations.

“To build two casinos, we employ over 3,000 people… On the iGaming side, we needed to hire one person and we invested $500,000,” Stewart said.

License fees, tax rates, and promotion rules under scrutiny

House Bill 298 would impose a 28% tax on online gambling revenue — less than the 33% paid by casinos. Ward defended this, citing casinos’ multiple revenue streams, including hotels and entertainment, which online platforms lack.

Stewart criticized the disparity: “Online s no employment… and yet they would be taxed at a lower rate.”

The proposed $50 million licensing fee — the highest in the nation — also drew fire. Critics compared it unfavorably to other states like Pennsylvania ($10 million) and Michigan ($250,000).

Another provision restricts promotional offers to rewards redeemable at Ohio’s physical casinos. While intended to those locations, some say it may hinder digital platforms.

“This makes us less competitive with the illegal market,” said Fernandez.

Source:

“Lawmakers considering bringing internet gambling to Ohio hear from ers of the plan”, news5cleveland.com, May 27, 2025