Ohio Eyes Online Casinos to Boost Revenue
Key Takeaways
Ohio is planning to legalize online casinos. A new bill aims to enable digital gambling as a way to generate additional state revenue—without raising taxes. The initiative is based on a two-year study that highlights the positive impact of iGaming (internet gambling) on tax revenues in other U.S. states. However, critics fear potential drawbacks for existing land-based casinos.
What’s Behind the Bill?
Representative Brian Stewart, Chair of the House Finance Committee in Ohio, is working on legislation to legalize online casino games in the state. The goal is to boost state revenue without introducing new taxes. Instead, the plan is to tap into the demand for digital gambling options to help reduce the budget deficit.
Online Casinos as a Source of Revenue
The bill is part of a broader budget reform. Previously proposed tax hikes on sports betting, cannabis, and tobacco products have already been scrapped. A planned income tax reduction was also not implemented. Legalizing iGaming now offers an alternative way to close revenue gaps without placing additional burdens on citizens.
Study Shows: Online Gambling Does Not Harm Land-Based Casinos
The current proposal is based on a two-year study commissioned as part of an earlier budget resolution. The commission concluded that online gambling in other states has attracted new player groups without negatively impacting brick-and-mortar casinos. In fact, both offerings complement each other. This assessment is supported by several lawmakers, including Jeff LaRe, Cindy Abrams, and Jay Edwards.
Where Will the Tax Revenue Go?
A portion of the expected tax revenue from online gambling is earmarked for public education—specifically for K–12 schools. This means the bill is not only financially motivated but also pursues social policy goals.
Concerns from Existing Gambling Operators
Despite the positive outlook, casino and racetrack operators in Ohio have voiced concerns. They fear that online offerings could reduce their visitor numbers. Lawmakers, however, emphasize that they do not intend to take actions that would jeopardize existing businesses. Instead, they aim to find sustainable solutions in dialogue with operators.
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A Strategically Timed Initiative
The initiative comes at a time when the Ohio Senate is reviewing the revised budget proposal. Since the budget includes no tax increases but also no further tax cuts, the legalization of online casinos could serve as a political compromise. It would generate revenue without introducing new financial burdens.
Our Assessment
The move to legalize online casinos in Ohio is a typical example of the growing trend across the U.S. to view digital gambling as a legitimate source of income. The thorough preparation through studies and the integration into the broader budget context suggest a well-considered approach. The key will be how effectively the balance is struck between introducing new digital offerings and protecting existing operators. For players in Ohio, this could soon mean legal access to online casino games—with clear rules and government oversight.
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