Could Online Casinos Be Legalized in Ohio by 2025?

As of January 2025, Ohio has not yet legalized online casino gaming, despite the successful launch of sports betting in January 2023. The question of whether online casinos will be legalized in Ohio by the end of 2025 remains a topic of significant interest and debate among policymakers, industry stakeholders, and residents.

Current Legal Landscape in Ohio

Ohio’s journey into legalized gambling began with the approval of land-based casinos in 2009. The state currently hosts four full-service casinos and seven racinos, offering a variety of gaming options to residents and visitors. In January 2023, Ohio expanded its gambling portfolio by launching legal sports betting, allowing residents to place wagers both online and in person. This move was seen as a significant step toward modernizing the state’s gaming industry.

However, online casino gaming, often referred to as “iGaming,” remains prohibited. Efforts to legalize iGaming have been initiated but have yet to come to fruition.

Legislative Efforts Toward Legalization

In September 2024, State Senator Niraj Antani introduced Senate Bill 312 (SB 312), aiming to legalize online casino gaming in Ohio. The proposed legislation would permit each of the state’s 11 casinos and racinos to operate one online platform, or “skin,” for casino games. Notably, the bill proposed a 15% tax rate on online casino revenue, which is lower than the 20% tax rate currently applied to sports betting in the state.

Despite its introduction, SB 312 faced challenges in gaining traction. The bill was assigned to the Senate Finance Committee but did not receive a hearing before the end of the legislative session. Senator Antani, who was instrumental in the legalization of sports betting in Ohio, has since reached his term limit, leaving the future of the bill uncertain.

Challenges and Considerations

Several factors contribute to the complexity of legalizing online casinos in Ohio:

1. Legislative Priorities: The Ohio legislature has a broad agenda, and gambling expansion may not be a top priority. Competing interests and political dynamics can influence the progress of such legislation.
2. Economic Impact: While proponents argue that legalizing online casinos could generate significant tax revenue and create jobs, opponents raise concerns about potential negative social impacts, including gambling addiction and financial hardship among residents.
3. Regulatory Framework: Establishing a robust regulatory framework to oversee online casino operations is essential. This includes ensuring fair play, preventing underage gambling, and implementing measures to address problem gambling.
4. Industry Support: Support from existing casino operators is crucial, as they would be the entities managing online platforms. Their willingness to invest in online operations and comply with regulatory requirements plays a significant role in the feasibility of legalization.

Comparative Insights

As of now, seven states in the U.S. have legalized online casino gaming: New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, Connecticut, and Nevada (limited to poker). These states offer valuable case studies on the benefits and challenges associated with iGaming legalization.

For instance, Michigan legalized online casinos in 2021 and has reported substantial tax revenue generation, which has been allocated to various state programs. However, concerns about increased gambling addiction have prompted investments in responsible gambling initiatives.

Public Opinion and Advocacy

Public opinion on gambling expansion in Ohio is mixed. Some residents support legalization, citing personal freedom and potential economic benefits, while others express concerns about social consequences.

Advocacy groups on both sides actively engage in the debate. Proponents highlight the success of sports betting and the potential for increased state revenue, whereas opponents emphasize the need for caution and the importance of addressing problem gambling.

Future Outlook

The path to legalizing online casinos in Ohio by the end of 2025 is uncertain. Key factors that will influence the outcome include:

• Legislative Action: The introduction and advancement of new bills in the upcoming legislative sessions are critical. Identifying lawmakers willing to champion the cause will be essential.
• Stakeholder Engagement: Collaboration among lawmakers, industry stakeholders, and advocacy groups can help address concerns and build a consensus on the best approach to legalization.
• Public Support: Demonstrating public backing through polls or referendums could sway legislative opinion and prioritize the issue.
• Regulatory Preparedness: Developing a comprehensive regulatory framework in anticipation of legalization can facilitate a smoother implementation process if and when legislation passes.

Conclusion

While the legalization of online casinos in Ohio by the end of 2025 remains uncertain, ongoing discussions and legislative efforts indicate that the topic is actively being considered. The experiences of other states provide valuable lessons that can inform Ohio’s approach to iGaming. As the situation evolves, staying informed and engaged with the legislative process will be crucial for all stakeholders involved.