Ohio's Future of Gaming Report Highlights Key Challenges and Opportunities

The Ohio state legislature’s Study Commission on the Future of Gaming in Ohio recently delivered its final report, a 354-page document exploring a broad spectrum of gambling expansion opportunities. The extensive report covers various gaming verticals, including online casinos, iLottery, horse racing reform, sports betting reform, charitable gaming, and bingo.

Despite the extensive coverage, the 11-person committee did not provide clear resolutions or definitive recommendations on how to proceed in 2025 and beyond. However, the report highlighted significant talking points, particularly regarding the future of online gambling in Ohio.

Diverse Opinions on Ohio’s Gaming Future

Unlike typical legislative committee reports that often present a unified stance, this report reflected a lack of consensus. Instead, seven different lawmakers contributed five separate letters, each drawing different conclusions on the state’s gaming future. This diversity of opinion is unsurprising given the committee’s broad scope, covering issues from online casinos to horse racing and charitable gaming. Additionally, some committee opposed any form of gambling expansion, making consensus unattainable from the outset.

Rising Problem Gambling Concerns

The report indicates that problem gambling has increased since Ohio’s land-based casinos opened in 2012. The Ohio Department of Mental Health and Addiction Services’ Office of Prevention and Problem Gambling highlighted that approximately three out of every 100 Ohioans have a diagnosable gambling disorder. This statistic translates to just over 250,000 individuals, nearly the population of Toledo.

Stacey Frohnapfel-Hasson, Chief of the Office of Prevention and Problem Gambling, informed the committee that gambling expansion correlates with a rise in the overall percentage of the population gambling and higher problem gambling rates. The uptick in sports betting has drawn particular attention.

Divided Opinions on iGaming Among Land-Based Casinos

Caesars, Penn, and MGM, along with Boyd Gaming, online expansion, citing benefits such as attracting new land-based customers and re-engaging dormant players.

Boyd Gaming’s Vice President of Governmental Affairs, Ryan Soultz, used New Jersey as an example, noting, “When matching our online and land-based databases, we found that 60% of online casino customers had not been to Borgata in over a year, and over 75% had made fewer than two trips to Borgata in the past year. And on a combined basis, online and land-based poker revenue at Borgata was up more than 40% from our land-based play in December 2012.”

Conversely, smaller operators not linked to prominent online gambling brands expressed concerns about iGaming. JACK Senior Vice President of Government Affairs, Daniel Reinhard, argued that iGaming poses a threat to Ohio businesses and employment, suggesting that it could negatively impact local economies similarly to the decline seen in local malls. Miami Valley Gaming also shared concerns about potential cannibalization, while Hard Rock’s perspective was noticeably absent from the report.

Impact of Sports Betting on Ohio Lottery

The Ohio Lottery Commission voiced concerns that The lottery, along with major kiosk brand U Bet, urged the legislature to revise the Class C structure to allow these kiosks to offer a wider betting catalog similar to apps and casinos.

Ohio’s comprehensive report on the future of gaming highlights the complex landscape of gambling expansion in the state. With no clear consensus among lawmakers, the path forward remains uncertain. However, the discussions surrounding problem gambling, the impact of iGaming on land-based casinos, and the effects of sports betting on the Ohio Lottery provide critical insights for future legislative decisions. As Ohio navigates these challenges, the balance between expanding gambling opportunities and addressing potential risks will be pivotal.

Source:

More money, more problems: Ohio commission releases report on future of gaming, abc6onyourside.com, July 13, 2024.