Might Ohio Pass iGaming Legislation?

Will they? Won't they? Back and forth, the Ohio state legislature has been contemplating whether or not now is the right time to legalize iGaming access. The issue, thought to be dead earlier this month, is still under consideration. After all, it's not really that much of a stretch for a state that passed sports betting legislation two years ago to go ahead and let residents legally wager on online casino games of chance.

Earlier in May, Senator Nathan Manning introduced Senate Bill 197 on the Senate floor. A similar bill, House Bill 298, was introduced last week in the Ohio House of Representatives by State House Rep. Brian Stewart (RState House Rep. Brian Stewart and Rep. Marilyn John) and Rep. Marilyn John State House Rep. Brian Stewart and Rep. Marilyn John (R).

As one has come to expect, both proponents and opponents are lining up to be heard. On the proponent side, top retail casino operators like Caesars Entertainment International, Fanatics Betting and Gaming, and MGM fully support both pieces of legislation. The opposition is being led by the Catholics Conference of Ohio, the Lindner Center for Hope, and the Ohio Suicide Prevention Foundation, groups that have expressed their concerns.

It's worth noting the retail casino community in Ohio has also expressed concerns about lost business if Ohio residents were permitted to have iGaming access.

Individuals from both sides of the issue were allowed to testify during hearings this past week. Brandt Iden, the vice president of government affairs at FB, gave the most compelling testimony in favor of iGaming legislation. He told lawmakers:

"On any given day in Ohio, there are thousands of people across the state playing online casino games for money. iCasino games are readily available in the form of illegal offshore casino websites and unregulated "sweepstakes" casinos. The difference is, these casinos have no oversight, no consumer protections, and generate zero revenue for the state."

This isn't new information. Many states across the nation are dealing with illegal casino gambling being offered offshore and by sweepstakes casinos. Given the amount of potential tax revenue that's sitting out there for the taking, it boggles the mind why lawmakers are dragging their feet. Yes, Indian Tribal concerns are always standing in the way.

According to recent studies, online gambling (sports and casinos) is expected to pull in close to $10 billion across the nation. Even at a low tax rate of 10%, there is a lot of revenue sitting on the table,

according to the current Senate bill, operators would be required to ante up $50 million for the opportunity to offer iGaming access in Ohio. They would also be asked to pay an effective tax rate of 36% on gross revenue. It's certainly enough to warrant consideration.

While no votes have been held on the Senate or House floors, testimony and debate are expected to continue. That's a positive signal lawmakers inch ever closer to a possible vote on this issue sometime later on this year.