A bill to expand online gambling in Ohio has been introduced. However, it doesn’t include any form of iLottery.
Last Wednesday, Sen. Niraj Antani (R-Miamisburg) filed a bill to legalize online casinos in Ohio.
Though unlikely to pass this year, Antani hopes introducing the bill will get the state started on moving toward an iGaming goal.
Could progress with online casinos eventually lead Ohio to join the states with online lotteries?
What Ohio iCasino bill includes
Antani brought forth Senate Bill 312 last week.
The Senator told another Catena Media publication, PlayUSA, that the bill is just a way to get the discussion on iGaming started:
“I really do think this is a long way off from truly getting legalized in Ohio, but I think it’s time we start the process. We’ve been talking about starting the process for over a year now. Someone has to kickstart it and I think it’s time to go.”
According to PlayUSA’s Matthew Kredell, the key details of SB312 are:
- Establishes the Ohio Casino Control Commission as the regulator of online casino gaming.
- Allows licensed casino operators in the state to obtain an internet casino gaming permit.
- Online operators may obtain an internet casino gaming associate permit to operate internet casino gaming on behalf of a licensed casino operator.
- For permits and associate permits, sets an initial fee of at least $300,000, renewable annually for $250,000, at the commission’s discretion.
- Sets a nonrefundable initial application fee of at least $100,000, also at the commission’s discretion.
- Requires each internet casino gaming permit holder to pay $250,000 annually to the problem casino gambling and addictions fund.
- Taxes Ohio online casino gaming at a 15% rate for both online slots and table games.
- Limits internet gaming marketing affiliate licenses to five. Marketing affiliates pay $25,000 for a three-year license with a $10,000 initial application fee.
Online lottery not mentioned in Ohio bill
Nowhere in the bill is anything included for an online lottery.
In July, members of the Ohio General Assembly published a lengthy report in support of adding online casinos and iLottery.
The 354-page commission report addressed a number of topics. Included were how iLottery could impact retail lottery commissions, as well as concerns about problem and youth gambling.
While most of the report was in support of adding the new online features, iLottery is not being introduced to lawmakers as of yet.
Currently, Ohio still has four couriers operating within state borders. These couriers allow for online sales of retail lottery draw tickets in the state.
One courier, Lotto.com, provides the online sale of select retail scratch tickets.
Online casino tax revenue a big driver
When looking at why Ohio might be pursuing online casinos over online lottery, tax revenue could be a big reason. Just look at a pair of bordering states.
Since Michigan launched online casinos in January 2021, it has generated $1.5 billion in tax revenue from the services. Recent months have been averaging $50 million in tax funds.
Pennsylvania debuted online casinos in July 2019. It has produced $2.55 billion in tax revenue for iGaming, averaging around $75 million in tax funds recently.
While both states have iLottery, sales are not creating the same amount of tax revenue as their online casinos.
Michigan had $1.3 billion in funds go toward education for 2023. However, online sales are accounting for just about 10% of the state’s lottery right now. Quick math shows it delivers around $130 million in tax revenue going back to the state.
Photo by vectorfusionart via Shutterstock
Graphic from the Ohio Lottery
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