Ohio lawmakers advocate for legalization of iGaming and iLottery

Three Ohio House Republicans have jointly recommended the legalization of online casinos and ilottery, citing the potential benefits for the state.

Representatives Jay Edwards, Jeff LaRe, and Cindy Abrams expressed their support in a letter included in the Study Commission on the Future of Gaming in Ohio's report, issued on July 12. This commission was formed following the legalization of online sports betting in Ohio in January 2023.

“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,” the lawmakers wrote.

The report, spanning 354 pages, includes extensive written testimony from various stakeholders. It also delves into the discussions and concerns of brick-and-mortar casino and lottery operators about potential revenue impacts from the introduction of online gambling.

Despite these concerns, the representatives highlighted the success of states like Connecticut, which saw a 44.7% growth in its overall gaming market in 2023, the second year of its online gaming operations.

“While we understand their hesitation to expand due to an uncertain impact, we believe that iLottery and iGaming could be a net benefit to the state of Ohio,” the representatives wrote.

"Looking at other states who have implemented either or both iLottery and iGaming, we see significant increases to tax revenues generated with greater participation but also that in-person sales continued to increase. That can largely be contributed [sic] to more people participating in the market on their phones and becoming more comfortable/knowledgeable about doing it at a physical location."

The lawmakers emphasized the need for careful legislative planning to ensure the safe expansion of gaming, including protecting user data and mitigating harm to existing physical gambling venues. Their letter signals the possibility of filing the first Ohio online casino legislation next year, pointing out the "tremendous potential" of such an initiative.

The study commission, required by a budget bill passed last year, conducted four meetings to gather industry and public input. While the Ohio legislature is not obligated to act on the commission's recommendations, the report follows significant changes in the state's gaming landscape, notably the legalization of sports betting earlier this year.

The report also addresses recent regulatory changes, including the state's tax rate on sports betting, which was doubled to 20%, and a ban on college player prop betting due to concerns about student-athlete harassment. The three Republicans criticized the tax hike as "premature" and harmful to the growth of legal sports betting. They also opposed the ban on college player prop betting, arguing it is unnecessary given that college athletes are now compensated, similar to professional athletes.

The future of these recommendations remains uncertain, as Governor Mike DeWine has supported the removal of college player prop bets and has not indicated any change in his position. Nonetheless, the letter from the Republican representatives highlights a growing political support for expanding online gaming in Ohio.