High stakes in Ohio: Two casino bills, millions in taxes, one big week
A week after an Ohio Senate Republican filed a bill aimed at legalising online casino gaming, a pair of House Republicans have unveiled a separate, more limited proposal. The latest proposal, House Bill 298, sponsored by Rep. Marilyn John, R-Richland County, and Rep. Brian Stewart, R-Pickaway County, aims to legalise internet gambling, including virtual slots and table games.
Estimated revenue $400-$800 million annually: Rep. John
The bill would legalise online casino games like poker, craps and roulette, a move they say could bring hundreds of millions of dollars to the state. Rep. Marilyn John emphasised that this law meets the growing consumer demand for online experiences. “We already have online gambling in other forms. This just takes it to the next level,” she was reported saying during the first committee hearing. According to John, the bill could generate employment in areas like tech development, streaming, and customer service.
Rep. Stewart projected that Ohio could bring in between $400 million and $800 million annually once the online gambling market reaches maturity. A similar bill was introduced by Sen. Nathan Manning that proposed legalising online gambling and an ‘iLottery’ system allowing residents to purchase lottery tickets via mobile devices. The bill, if passed, would legalise online casino gaming, online lottery sales, and digital horse race wagering — while proposing the highest tax rates in the nation for certain operators. Senate Bill 197 proposed high licensing fees and tax rates depending on how operators structure their online gaming platforms. SB 197 is scheduled for its second hearing on Thursday.
SB 197 to tax third-party operators more
According to the bill, existing brick-and-mortar casinos that operate online casino platforms in which they hold at least a 50 percent ownership stake— such as Caesars or PENN Entertainment— would pay a $50 million license fee for five years, with a $5 million renewal fee. Their revenue would be taxed at 36 percent.
In contrast, operators relying on untethered or third-party operators— such as BetMGM or DraftKings — would face significantly steeper costs including paying twice as much for a licence. According to the bill, these operators would have to pay $100 million license fee, a $10 million renewal charge, and face a 40 percent tax rate. That figure would give Ohio the highest open-market tax rate for online casino gaming in the country, surpassing Pennsylvania’s current 36 percent.
Manning cited Pennsylvania as a prime example, where internet gambling brought in $964 million, plus $195 million from iLottery sales. He said, “This is a significant revenue generator that can help fund a lot of great projects in the state.”
Crackdown on illegal casinos
Meanwhile, The Ohio Casino Control Commission recently intensified its efforts to dismantle illicit gambling parlors operating across the state, which authorities say not only flout state gambling laws but also prey on vulnerable residents. 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.
