Ohio ramps up crackdown on illegal casinos amid surge in underground gambling

Sankunni K
Written by Sankunni K

Despite years of enforcement and thousands of illegal slot machine seizures, Ohio continues to battle a persistent wave of underground gambling parlors operating across the state. The Ohio Casino Control Commission is intensifying its efforts to dismantle these illicit venues, which authorities say not only flout state gambling laws but also prey on vulnerable residents.

Also read: Ohio cracks down on Kalshi Robinhood and Crypto dot com

Over the past decade, the Commission has confiscated more than 7,500 illegal slot machines — five times more than the 1,500 slot machines legally available statewide. While these seizures represent significant progress, Ohio Casino Control Commission Executive Director Matthew T. Schuler says illegal gambling operations remain a stubborn presence in many communities.

They would like you to empty out your social security checks or any type of means and they will do nothing to stop you from burning through all of that,” Schuler said.

Also read: Ohio online casino bill to tax third-party operators more

Public unawareness and lax penalties

A major challenge in tackling the problem, according to Schuler, is that many Ohioans don’t realize they are gambling illegally. Unlike the state’s four licensed casinos and seven racinos, these unregulated parlors often masquerade as legitimate entertainment businesses, sometimes claiming to offer “games of skill” rather than games of chance.

That’s just not true,” Schuler said. “These games are rigged, and the operators do everything they can to ensure the house always wins,” he added.

Additionally, the legal penalties against operators tend to be minimal. Most people apprehended operating illegal parlors receive fairly lenient charges, and few are incarcerated. This has enabled some operators to remain in business with little discouragement.

Also read: Ohio’s move towards iGaming legalisation

Multi-pronged approach

To combat the growth of illicit gambling, the Casino Control Commission has pursued a three-pronged approach consisting of public education campaigns, increased coordination with local prosecutors, and targeted raids to crack down on activity and drive up the price of doing business for illicit operators.

The commission also aims to dispel misconceptions surrounding these venues. Many illegal operators exploit legal grey areas by advertising their machines as skill-based or promotional sweepstakes games. However, Schuler warns that if a venue is offering slot-style gaming and it isn’t one of the state’s licensed casinos or racinos, it is unequivocally illegal.

Stay in the loop and join the biggest iGaming Community in the world with SiGMA’s Top 10 news countdown. Subscribe HERE for weekly updates from the world’s iGaming authority and exclusive subscriber-only offers.