Ohio Senator Nathan Manning has introduced bill SB 197 would legalize online casino games, lottery games, and horse racing on mobile devices in the Buckeye State. A move that would make Ohio one of only eight states where iGaming is legal.
But can the bill, which also features a whopping 36% tax rate on iGaming operators, , or will resistance from groups like the National Association Against iGaming (NAAiG) kill it?
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What Is In Bill SB 197?
Senator Manning's bill SB 197 comes in at a whopping 700 pages, so I'll forgive you if you haven't read it from start to finish. Let me summarize some of the key features of this new bill.
Only current casino operators and permit holders may receive an internet gambling operator license from the Commission. That means all 11 of Ohio's casinos could acquire a license. The bill sets out a $50 million price tag for that initial license and a $5 million fee to renew the license every five years. These Ohio-based license holders would pay a 36% tax on gross gaming revenues (GGR).
Those licensing fees jump to $100 million for non-Ohio-based license holders, and their tax rate on GGR would also increase to 40%.
One percent of taxes collected from internet gambling license holders would be attributed to the "problem gambling fund".
Can Bill SB 197 ?
There are shifting opinions to legalize iGaming platforms in the state, with a number of lawmakers stating their for this legislation. Senate President Rob McColley said as much recently, commenting on the growing appetite for iGaming laws: “I think there's a different tone and tenor about some of these things than maybe there was ten years ago. I think a lot of times Ohioans want to have a little bit more choice as to how they spend their money and spend their recreational time."
Studies have shown that over a quarter Empire Creative, which is already releasing proprietary online casino gaming titles.
Lawmakers are not only rightfully seeing iGaming laws as a way to give Ohioans more choices with their own recreational time, but as more tax dollars to fund state initiatives. Ninety-nine percent of funds from taxing internet gambling license holders would go to the state's general fund.
Bill SB 197's Oppisition
But that doesn't mean ing Bill SB 197 will be a walk in the park. Groups like the National Association Against iGaming (NAAiG) have already spoken out on what could happen to the Buckeye State should it open up to iGaming. A 2025 iGaming Impact Report by the advocacy group estimates $602 million in lost value to the economy. It also points to 2,800 jobs being lost largely due to brick-and-mortar cannibalization.
That number could sway some lawmakers who might have one foot in and one foot out of the door on iGaming legislation.
Help for Retail Sports Betting
The bill tries to address concerns of land-based operators who might worry they'd face falling revenues. It does this by lowering tax rates for retail sports betting from 20% to 10%.
If that is enough to stave off any fears from the brick-and-mortar casino industry remains to be seen, but it's clear Manning has attempted to provide those affected by iGaming an olive branch.
