Ohio Legislature to Make Another Run at iGaming Legislation

So far this year, iGaming advocates throughout the U.S. have been disappointed. Their disappointment has been driven by failed attempts to get iGaming legislation passed in states like Illinois, Indiana, and Maryland. With the legislative season drawing to an end, it looks like Ohio might be the last state that could get something done in 2025.

Those efforts are currently underway as State Senator Nathan Manning introduced his iGaming and iLottery bill on the Senate floor. The bill, SB 197, is comprised of 701 pages that focus on changing existing laws to allow for these new forms of online gambling activities.

It's worth noting that there is still plenty of time to get this bill passed during the current legislative session. Unlike most states, the Buckeye State’s legislative session runs throughout the entire year.

Why This Bill Might Have a Chance

Other attempts to get iGaming legislation passed in the past have proven to be misguided, failing to get traction among lawmakers. What's unique about SB 197 is the way the bill shifts the focus from appeasing iGaming operators to addressing what is best for the state in general. Knowing iGamig operators are likely to be satisfied with any law that gives them access to Ohioans, the focus how now been sifted to Senators who have seemingly been neutral about the iGaming issue.

What's best for the state and its residents? A look at the bill makes clear that this would not be an operator-friendly deal. The burden it places on wanna-be licensed operators is quite extensive, exceeding the aggressiveness of the burden that is carried by opertors in Pennsylvania.

The fun states with a massive application fee of $50 million, plus a subsequent renewal fee of $5 million each year. The bill only gets a little more burdensome by the fact operators would be required to pay a tax rate of 36% on their gross iGaming revenue. This high number is compatible with the percentage that is being charged in PA, one of the highest rates in the country.

There is another provision in this proposed law that is quite unique. That provision addresses the different ways that online-only and out-of-state operators would be treated. If a retail casino decides to run its brand, the aforementioned rates would be applicable. If they decide to partner with a third-party operator, the respective rates would increase to $50 million for both the casino and the out-of-town operator, plus the tax rate would be ramped up to 40%.

Is There Any Hope for This Bill?

SB 197 has a lot of appeal across the board. It addresses budget concerns by pulling in massive license fees and taxes. It also goes a long way to protect the state's retail casino community with the excessive licensing fees. It's worth noting that the inclusion of iLottery language in the bill will be a plus. Is this enough to get passage?

Maybe, but there is a lot of fine print that needs to be considered. The good news is lawmakers still have a few months to get things done before the year ends.