A groundbreaking legislative proposal, Senate Bill 312, aims to legalize online casino games in Ohio. This would allow Ohio’s casinos and racinos to introduce online gambling themselves or through a vendor.
The expectation is that legalizing online gambling would lead to economic growth as it has done in the seven other states where it is already legal. Ohio could benefit from being one of the most populous states to introduce online gambling. With a population of 12 million, second only to Pennsylvania, it could become one of the major players in the industry.
A push for legal online gambling
Ohio has been on a slow but steady path toward legal gambling. In 2009, a constitutional amendment allowed for the establishment of brick-and-mortar casinos in the state. Since then, the casino and racetrack industry has flourished. Lawmakers in the state continued to build on this foundation and push for further expansion of gambling.
Senator Niraj Antani is the primary sponsor of the bill. His vision is to enable Ohio residents to engage in a variety of online games, such as slot machines, poker, roulette, and blackjack.
Ohio already offers sports betting, and residents can place their bets at licensed operators of online and physical sportsbooks. Antani was the co-sponsor of the bill to legalize sports betting in Ohio.
A safe and regulated online gambling environment
Senator Antani believes that legalizing online casinos will reduce illegal online gambling activities and offer a safe and regulated framework for the practice. The Ohio Casino Control Commission would collaborate with licensed casinos to specify which games they can offer online. This will help to ensure a safe and regulated gambling environment.
The commission would oversee the launch of online casinos and monitor the activity on an ongoing basis. Granting the existing casinos the option of having an online casino app would enable the use of existing infrastructure and expertise in the industry.
Obstacles that could stand in the way
Governor Mike DeWine is not in favor of online casinos. He has voiced regrets about passing online sports betting legislation in 2021. Senator Antani is due to leave office at the end of the year. Despite proposing the bill, he may have to leave it to others to move it forward.
The proposal has raised concerns among some stakeholders. They worry that physical casinos in Ohio may suffer from fewer customer visits and must lay off staff. This is a common concern in US states seeking to introduce online gambling.
Antani doesn’t believe that introducing online gaming will undermine physical gaming establishments. He says it’s just another entertainment option on people’s phones, just like every other game they play or movie they watch.
Taxes
Bill 312 proposes a tax rate of 15% for online casino games. This is 5% lower than the current 20% tax rate for online sports betting in the state. The state could invest the tax revenue in public services, community development initiatives, and infrastructure projects.
The residents of Ohio would have to pay tax on gambling winnings to the Internal Revenue Service (IRS). All Americans must pay tax on their winnings. US resident gambling income is taxed at a fixed rate of 24% regardless of the amount won.
The first hearing
The bill isn’t likely to get a hearing until November. If it’s successful, Ohio will join the seven other US states where online casinos are legal. Residents would be able to play popular online games in a safe and regulated way rather than illegally. It could also create jobs within the iGaming sector both directly and indirectly, boosting employment in Ohio.
