Analysis: Ohio’s First Online Casino Bill

Ohio has officially introduced its first online casino bill, marking a significant moment in the state's gaming history. State Senator Niraj Antani filed SB 312, aiming to legalize online casinos and allow Ohio’s 11 casinos and racinos to each operate an online casino app. Despite the excitement surrounding this introduction, there is widespread recognition that this bill is unlikely to receive much legislative attention in 2023.

 

The Purpose Behind the Bill

Sen. Antani, facing term limits and nearing the end of his time in office, acknowledges that the path to legalizing online casinos in Ohio is a long one. His primary motivation for filing the bill before leaving office is to initiate a formal conversation among legislators.

He recognizes the importance of starting the process, despite the understanding that the bill will not likely pass in the current legislative session. “We’ve been talking about starting the process for over a year now. Someone has to kickstart it, and I think it’s time to go,” said Antani. His goal is to “socialize the concept” among legislators who may not have yet considered the potential of iGaming, and he hopes the introduction will spark broader discussions in future sessions.

While the bill sets the stage for legal online casinos, its progress is stalled by timing. Sen. Nathan Manning, co-chair of the Ohio Sports Gaming Study Committee, expressed doubt that the bill would get a hearing during the upcoming lame-duck session. Manning's sentiment is shared by Antani, who admits that although he would like to see the bill gain traction this year, moving it forward would be highly optimistic. The upcoming legislative turnover adds another complication, as many key supporters, like Rep. Jay Edwards, are also facing term limits.

 

Key Provisions of SB 312

The bill outlines a straightforward regulatory and operational framework for online casinos in Ohio:

• Regulation: The Ohio Casino Control Commission will oversee online casino operations.
• Permits: Licensed casinos in the state can obtain permits for online operations, with an initial fee of $300,000 and annual renewals of $250,000.
• Taxation: Online casino operators will be taxed at a 15% rate for slots and table games.
• Affiliates: Marketing affiliates will be limited to five licenses, with fees for a three-year license set at $25,000.

A notable aspect of the bill is its focus on responsible gambling. Permit holders will be required to contribute $250,000 annually to Ohio’s Problem Casino Gambling and Addictions Fund.

Ohio has already witnessed the complexities of passing gaming legislation with the legalization of sports betting, which took three years to finalize. Antani’s bill is expected to undergo numerous revisions and iterations, with future general assemblies likely taking on the task of refining and passing the legislation.

Despite the lengthy road ahead, Antani's actions are reminiscent of those who laid the groundwork for sports betting in Ohio, such as former Rep. Dave Greenspan and Sen. John Eklund. These legislators introduced the first sports betting bills, but it took years before the legislation came to fruition. Antani draws a comparison, acknowledging that his name may not be on the final version of any iGaming bill, but his efforts to “move the ball down the field” will be critical to its eventual passage.

 

“Someone has to kickstart it, and I think it’s time to go.”

 

Conclusion

Ohio's first online casino bill is more of a symbolic beginning than a practical legislative effort at this point. While it’s unlikely to see significant progress in the short term, its introduction marks an important step toward broader discussions about the future of online gaming in the state. Sen. Antani's filing serves to open the door for future efforts, with the understanding that legal online casinos in Ohio may take multiple legislative sessions to become a reality. The bill provides a starting framework, but the complex political landscape and timing suggest that real movement on this issue is unlikely before 2024.