Ohio's Online Casino Debate Heats Up with New Legislative Proposal

Ohio is poised to reignite the debate on online casinos with new legislation introduced by State Rep. Brian Stewart (R). The bill proposes a unique structure to prevent the cannibalization of retail casinos, which has been a significant concern in previous attempts to legalize online gaming.

The new proposal calls for Ohio’s 11 casinos to exclusively hold online gaming licenses. This approach aims to create a competitive market where casinos with online operations can thrive without harming their land-based counterparts. The bill also bans online promotional credits, requiring operators to offer incentives that encourage visits to physical casinos. “We would say that you can’t offer online promotional credits,” Stewart said. “You can offer promotional credits, but they need to be credits for the land-based casino.”

Supporters of the bill believe it could generate $400 million in state tax revenue and provide a boost to the Ohio gaming industry. Major operators like Caesars, Hard Rock, and Penn Entertainment, which already offer online gaming in other states, could benefit from this legislation. However, the path to legalization is fraught with challenges. Previous efforts lacked support, and the current governor, Mike DeWine, has expressed opposition. With DeWine term-limited, the next governor’s stance on online gaming will be crucial. Democratic candidate Amy Acton has expressed support for legalization, provided significant consumer protection and responsible gaming resources are in place. Republican candidate Vivek Ramaswamy is more ambivalent but supports responsible expansion.