Stewart is seeking new sources for tax revenue after plans to raise existing gambling taxes were removed from Gov. Mike DeWine’s budget. A report published last year by the Study Commission on the Future of Gaming in Ohio recommended legalizing online gaming.
“While the state should proceed with caution and care with any expansion of this magnitude, with the right regulatory framework, these types of gaming can thrive with nominal impact to our current system,” Reps. Jay Edwards, Jeff LaRe and Cindy Abrams wrote in the report.
They went on to add that other states have seen “significant increases to tax revenues generated with greater participation” in online gaming and lotteries, and that “These tax revenue benefits to the state and funding that could be provided to our K-12 education system cannot be overlooked”.
Ohio’s casino gaming landscape
The state operates 11 land-based casinos, generating substantial revenue. In 2024, they reported a combined revenue of approximately $1.1 billion, suggesting high demand for Ohio online casinos.
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.
Ohio Lawmakers Making Plans To Legalize Online Casinos Ohio Lawmakers Making Plans To Legalize Online CasinosAppetite for gambling in the Buckeye State
Ohio sports betting was legalized in 2021 with the first online sportsbooks launching in 2023. Ohioans wagered nearly $8.9 billion on sports in 2024, which led to state-licensed operators generating $899 million in revenue. Despite legalization, unlicensed operators outstripped these numbers, generating over $1.5 billion. This includes sweepstakes, offshore sportsbooks, and prediction markets.
Ohio Lawmakers Making Plans To Legalize Online Casinos.The gambling industry in Ohio, therefore, presents a big opportunity for lawmakers to generate funds for the state. A proposed tax hike on sports betting from 20% to 40% was removed from the budget, so legalizing online casinos could be another route to increasing state funds.
Ohio Lawmakers Making Plans To Legalize Online Casinos