A lawmaker in Ohio has filed legislation with the senate in Columbus seeking to legalize online gambling in the state. Senator Niraj Atani says the success of online sports betting in Ohio paved the way for the legalization of iGaming and demonstrates Ohio's ability to safeguard and protect consumers.

Ohio State Senator Niraj Antani has introduced new legislation aimed at legalizing iGaming, which would allow for online casinos offering interactive table games and slot machines. As Ohio already permits brick-and-mortar casinos, racinos, and both online and retail sports betting, Antani believes it's time to expand the state's gaming landscape and move to the next logical step.

The push for iGaming in Ohio

Senator Antani's push for iGaming comes on the heels of the successful implementation of online sports betting in Ohio. The lawmaker argues that the state's ability to regulate as well as protect consumers in the realm of sports wagering demonstrates its readiness to manage online casino gaming as well.

Antani stated that gaming has evolved in the state and they have seen immense success with sports betting, so it's now time to legalize iGaming in Ohio. "Many Ohioans don't have close access to a casino or racino, but should be able to participate in this entertainment option," Antani added.

Senate Bill 312, which proposes the legalization of iGaming, has yet to be assigned to a committee for initial review. However, the bill's introduction has already sparked significant debate among the state's proponents and opponents.

Potential economic impact

Proponents of iGaming in Ohio highlight the potential for substantial tax revenue. A recent study by the Study Commission on the Future of Gaming estimated that online casinos in Ohio could generate between $500 million and $650 million in annual taxes. The commission's report pointed to similar tax structures in Pennsylvania and Michigan, states with comparable populations, as models for Ohio.

Currently, only seven states in the US have legalized iGaming: Delaware, Connecticut, New Jersey, Michigan, West Virginia, Rhode Island, and Pennsylvania. A study by Vixio, a gaming regulatory intelligence company, suggests that states without regulated iGaming could be leaving up to $15 billion in annual taxes on the table.

The potential revenue from iGaming could be a game-changer for addressing critical state issues, such as the childcare crisis, the commission's report noted. However, caution is necessary to ensure that the implementation of iGaming does not negatively impact Ohio businesses and workers, the report continued.

Opposition from brick-and-mortar casinos

Despite the potential financial benefits, the proposed legislation faces significant opposition, particularly from local casino operators. Jack Entertainment, the only casino company headquartered in Ohio, is among the most vocal critics. During an April meeting of the Study Commission on the Future of Gaming, Jack Entertainment's senior VP of government affairs, Daniel Reinhard, argued that iGaming could devastate the state’s brick-and-mortar gaming sector.

"Just like online retail has decimated local retail, iGaming will do the same under any logical scenario," Reinhard stated. He continued on to say that iGaming would damage Ohio businesses and cost jobs, leading to diminished capital investment and the degradation of the existing tax base of the state.

Jack Entertainment runs two gaming venues in Ohio: Jack Thistledown Racino and Jack Cleveland Casino. The company fears that the introduction of iGaming could lead to job losses and reduced foot traffic at its properties.

Support from major competitors

In contrast to Jack Entertainment, other major gaming operators in Ohio, such as Penn Entertainment and MGM Resorts, have expressed support for the introduction of iGaming. MGM operates the MGM Northfield Park racino, while Penn runs a total of four casino gaming properties, including Hollywood Casino in Toledo and Hollywood Casino in Columbus.

Jeff Morris, Penn's head of government relations, testified that in states where Penn operates online casinos, iGaming has been a "catalyst for growth" for the company's land-based properties. According to Morris, iGaming can coexist with traditional casinos and even drive more business to physical locations.