Ohio lawmakers have officially filed SB 197, a bill that aims to legalize online casino games across the state. State Sen. Nathan Manning introduced the legislation, highlighting the potential economic boost and regulatory benefits of bringing online gambling under state oversight.
Under SB 197, existing brick-and-mortar casinos that own at least 50% of their online platform would be taxed at 36%. These operators would pay a $50 million licensing fee for five years and a $5 million renewal fee. Companies using third-party platforms would pay double – $100 million upfront, a $10 million renewal fee, and a 40% tax rate.
If passed, Ohio would have the highest tax rate for an open-market online casino state, surpassing Pennsylvania’s 36%. Lawmakers argue this would generate significant revenue for Ohio. Manning estimates annual revenue from online casino games could range from $300 million to $1 billion.
The bill also outlines how that revenue would be used. Ninety-nine percent would go to Ohio’s general revenue fund. The remaining one percent would support the state’s problem gambling fund.
SB 197 Adds Safeguards for Residents
In addition to financial terms, SB 197 includes several consumer protections. The bill would ban use of the word “free” in advertisements. It would also prohibit ads on college campuses. Furthermore, it proposes cutting the retail sports betting tax rate to 10% and adding strict player safeguards.
Lawmakers say the bill targets current unregulated online slot games and casino platforms operating without oversight. By legalizing and regulating them, the state can ensure consumer safety and financial accountability.
“We kind of put this together very quickly, but I will say we’ve been working on this for years,” Sen. Manning added during the hearing.
Support for online casino legalization appears to be growing in Ohio. Previously resistant lawmakers are reconsidering their positions, partly due to the revenue potential.
As debate continues, SB 197 could mark a turning point for online gambling in Ohio. Lawmakers expect hearings on the bill in the coming months.
Last Updated on by jonathan r
