Democrat Nickie Antonio cited other states that have successfully legalized, stating, “Certainly, other states have shown us that when they take the dollars and they’re distributed to programs that are always underfunded, there’s a helping hand there.”
Ohio online casinos could be legalized following new billJack Entertainment, owners of Jack Cleveland, has previously opposed online casino expansion, arguing it could draw customers away from physical casinos, thereby hurting local economic activity.
Online casinos to generate high revenue
It is estimated that legalizing Ohio online casinos could generate revenue of over $1 billion per year. Last year, the land-based casinos and racinos generated $1.1 billion, and other states have seen similar numbers after going digital.
Ohio online casinos could be legalized following new billNew Jersey online casinos generated over $2 billion last year, and given Ohio’s greater population, it could expect similar numbers. Ohio has around 2 million more residents than the Garden State.
The bill sets a license fee at $50 million plus an additional $5 million for renewal every 5 years. A tax rate of 36 to 40% would also bring in substantial revenue to the state coffers. Of the money collected, 99% will go to the Ohio General Fund, with the other 1% towards problem gambling support programs.
Curbing unregulated markets
With no legislation currently in place, residents use unregulated platforms in high numbers. Last year, it is estimated that sweepstakes casinos and other unlicensed operators generated $3.7 billion in revenue from Ohio users.
In states with legalized online casinos, users play less frequently at unregulated sites. In Michigan, licensed operators generated twice as much as unlicensed casinos, such as sweepstakes. Similarly, New Jersey and Pennsylvania also saw more revenue generated from legal casinos than those operating outside regulations.
At the moment, seven states in the US have licensed online casinos. If the proposed regulations are passed, Ohio will become the eighth next year. The bill will now go to the Senate Select Committee on Gaming for initial evaluation.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
