Lawmakers have officially begun with their Ohio online casino campaign with the introduction of SB 197. Senator Nathan Manning has introduced SB 197 on Tuesday and seeks to establish online casino gaming within the state. This includes real money online casinos, online lottery games, and online wagering on horse racing.
Sen. Manning’s filing of SB 197 was timely, since Ohio’s legislative session runs year-round. This means there will be more time for the bill to undergo the respective committees. Moreover, it has been documented that states that have longer legislative sessions have greater success for advancing online gambling bills.
What are Key Policies of SB 197?
That said, SB 197 will have strict parameters for running an online casino business. Specifically, operators who hold licenses who choose to partner with outside online sportsbooks will have higher prices to operate.
This separates brick-and-mortar casinos that operate their own online platforms with at least 50% ownership. For example, Caesars or PENN Entertainment would face a 36% tax rate while they are operating in Ohio. Moreover, they are required to pay a $50 million licensing fee for five years, plus a $5 million renewal fee.
In contrast, operators using third-party platforms without such ownership ties would pay double. This includes a $100 million initial fee, a $10 million renewal fee, and a higher tax rate of 40%. This 40% rate would make Ohio the highest-taxing open-market online casino state, surpassing Pennsylvania’s 36% rate.
Other elements of the proposal include cutting the retail sports betting tax rate to 10%, and marketing restrictions. This includes banning the use of the word “free” in advertising, and prohibiting ads on college campuses. The bill also enforces a series of mandatory player protection measures.
During the hearing, Sen. Manning noted that they have been drafting this bill to cover a number of key tenets. Sen. Manning added:
“We kind of put this together very quickly, but I will say we’ve been working on this for years.”
Revenue Potential of Ohio Online Gambling
Manning projected that legalizing online casinos could generate between $300 million and $1 billion in yearly revenue for the state. Under the bill’s current structure, 99% of that tax revenue would be directed to the state’s general revenue fund. Meanwhile, the remaining 1% is allocated to the problem gambling fund.
The strong revenue potential and need for regulation are driving Ohio lawmakers to reconsider their stance on online casinos. Moreover, bringing unregulated gambling under oversight adds urgency to support legalization efforts.
As a result, lawmakers appear increasingly open to legalizing online casino operations in the state.