Last updated: September 05, 2024
Ohio is exploring the legalization of online casinos, with State Senator Niraj Antani introducing a bill to expand the gambling framework. The bill proposes a structured licensing process and emphasizes responsible gambling measures, signaling a new potential revenue stream while acknowledging the challenges in achieving full legalization.
Ohio is on the path of developing more gambling legislation and this follows the new proposal to legalize online casinos. This comes after the opening of sports betting in the state on the 1st of January 2023 which produced a staggering $7—a total of $ 65 billion of sports bets during the year.
Online casinos could generate even more money than the currently offered revenues in Buckeye State.
With the new bill proposed by Ohio State Senator Niraj Antani, iGaming is now the new target for legalization. Unlike conventional gambling, this vertical generates more revenue for the states and commercial operators. However, the risks associated with iGaming are higher levels of problem gambling compared to physical betting.
Niraj Antani introduced a bill that would make it possible for the Ohio Casino Control Commission to regulate and issue licenses to operators willing to venture into the Internet casino business.
In response, Antani pointed to the success of state sports betting and claimed that it is high time online casinos were legalized in Ohio. He pointed out that most people cannot just walk to a physical casino or racino and that via iGaming, the activity that hitherto falls under the black market would be regulated and conducted legally.
Indeed, in his statement at the senate, Senator Antani pointed out that control of online gambling was necessitated by the fact that many Ohio residents could not easily afford physical casinos or racino. He stated that regulation of iGaming would offer a safer form of legalized activity and would shift the activities out of the black zone.
The aforementioned legislation would allow the Ohio Casino Control Commission to issue licenses not only to casino operators but also to suppliers, including B2B providers such as game and technology providers. Amidst all his support for the bill, Antani admitted that the journey to legalize online casinos in Ohio would not be easy.
Nevertheless, the senator believes it is crucial to begin the conversation on iGaming now. His bill, SB312, outlines a licensing structure with an initial permit fee of $300,000, followed by an annual renewal fee of $250,000. The Casino Control Commission would be responsible for implementing these fees as part of the regulatory framework.
Ohio’s legislation bill that seeks to license online casinos has a detailed fee structure and provision of measures to prevent compulsive gambling. State Senator Niraj Antani’s proposed bill charges operators interested in participating in the iGaming business a non-refundable application fee of one hundred thousand US dollars.
In addition to the above, the bill requires every licensed operator to donate $250,000 every year to the problem gambling and addictions fund. Also, new Operators would need to deposit 15% of their gross receipts from online slots and table games.
This seemingly moderate tax rate may lure other operators who have been subjected to higher taxes in other states, and Ohio could, therefore, present a lucrative market for online casino operations.
Websites that are likely to offer online casinos in Ohio will also have to undergo the licensing process, which costs $25,000 for a 3-year license and $10,000 in application fees. These licenses will only be open to operators with a casino license in the state.
As much as Ohio is trying to license and create a revenue-generating market for iGaming, it has also been going after offshore unregulated ones. Perhaps, the state has demanded that Bovada, a popular platform based on the territory of another country, stop its activities in Ohio, which demonstrates the state’s desire to regulate the market and protect the players.
