Ohio lawmakers calling for the legalization of internet casino gambling could soon have a new legislative attempt to consider.
Rep. Brian Stewart, chairman of the House Finance Committee, will introduce a bill to legalize statewide iGaming, confirming that the legislation aims to allow wider access to casino games via mobile devices and computers while creating a new source of revenue without raising traditional taxes.
Key Takeaways
- Ohio lawmaker Rep. Brian Stewart is drafting a bill to legalize online casino gambling
- A state-commissioned report found iGaming boosts revenue without hurting physical gambling venues
- Lawmakers suggest iGaming tax funds could support K–12 education and other public services
The bill aligns with recent budgetary revisions by House Republicans to Gov. Mike DeWine's budget plan and is another approach to generating revenue without pursuing controversial tax increases.
In addition to his efforts to remake the state's gaming industry, Rep. Stewart has proposed a second bill in the House to shape the new state budget. That bill has undergone several revisions, including some to Gov. Mike DeWine's proposals, like removing a proposed tax increase on Ohio sports betting operators.
Ohio's interest in legal online gambling is not new.
Two years ago, a clause in the state budget created a commission to study the viability of iGaming and iLottery. The commission, which completed its work last July, found that states where online gambling is legal had experienced substantial tax revenue increases due to high public demand for online gaming sites.
The report was supported by legislators Jeff LaRe, Cindy Abrams, and former Rep. Jay Edwards, all of whom were part of the commission's work. They noted that iGaming does not necessarily cannibalize revenue from land-based gambling venues. Instead, evidence shows that online casinos can expand the market, with new players added who might not otherwise visit land-based casinos or racinos.
Public schools could benefit from legalized iGaming
Aside from boosting state revenues, the commission report also posited that tax money from legalized iGaming can support public services, especially K-12 school funding for education. Through this, Stewart's bill has garnered greater momentum as lawmakers look for realistic ways of investing in essential services.
Nevertheless, stakeholders in Ohio's conventional gaming business have concerns. The owners of the state's four casinos and seven racinos fear that internet websites will reduce the number of patrons visiting them.
Lawmakers emphasized the need to enact iGaming policies that won't harm existing gaming centers.
Stewart's proposal is particularly well-timed, as the Ohio Senate is revising the House's revised state budget. While the House version eliminated proposed tax hikes on sports betting, marijuana, and cigarettes, it also omitted an income tax cut, a break from seven consecutive years of cuts.
Ohio lawmakers now face the challenge of determining how to proceed with the state's budget concerns. Legalizing online casino gambling may become the focal point of legislative discussions.
