Bill proposed 15% tax rate

Ohio Senator Niraj Antani introduces bill for online gambling legalization

Senator Niraj Antani
2024-09-10
Reading time 1:33 min

Ohio State Senator Niraj Antani has unveiled Senate Bill 312, a new piece of legislation aimed at legalizing online gambling, or iGaming, in the state. The bill proposes that the Ohio Casino Control Commission oversee online casino operations, which would include games such as poker, roulette, blackjack, and slot machines.

Under the proposed legislation, online table games and slots would be taxed at 15%, a rate lower than the 20% tax currently applied to online sports betting in Ohio. This would position Ohio as the only state where online casino tax rates are less than those for sports betting.

The bill outlines a licensing structure for existing casino operators in Ohio, who would be eligible to offer online gambling. Each operator would face an annual cost of at least $500,000, encompassing a $100,000 application fee, a $300,000 licensing fee, and a $250,000 contribution to a problem gambling fund.

However, the proposal has faced criticism from some sectors, particularly brick-and-mortar businesses. David Corey, executive vice president of the Bowling Centers Association of Ohio, expressed concerns about the potential adverse effects on jobs in the hospitality industry. Corey noted that the rise of online sports betting had already negatively impacted traditional venues.

“This is definitely worrisome for our clients,” Corey said. “We will fight this tooth and nail until you give something to the bricks-and-mortar locations.”

The bill also includes a provision to limit the number of online casino affiliates to five, a restriction not applied to sports betting affiliates. This cap is intended to regulate the market and prevent saturation.

Despite its innovative approach, Senate Bill 312 faces significant hurdles in the legislature. With Senator Antani term-limited and set to leave office in 2025, the bill’s future remains uncertain if not addressed promptly.

The broader debate on gambling expansion in Ohio continues, with a recent report from the Study Commission on the Future of Gaming highlighting various aspects of the industry, including online casinos and sports betting reform. The commission's findings were divided, reflecting a lack of consensus on the state’s path forward.

Antani defended the bill, arguing that iGaming is a natural evolution of gaming in Ohio. “People want iGaming. They do it illegally now. They do it on the black market. I believe we should be able to do it safely and in a regulated way, and it’s time to legalize this practice,” he said.

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