Ohio Legislators Explain Their Online Casino Support, Efforts

PITTSBURGH – There might be future rounds of gaming expansion in Ohio, including online Ohio casinos, but when that would take place and what exactly that would entail remains to be seen.

That’s according to comments from state lawmakers who spoke with BetOhio.com during the National Council of Legislators from Gaming States summer conference held last week in the Pennsylvania city.

Those remarks came on the heels of a 350-page report released this month by a panel that was tasked this year with looking into the subject. The Commission on the Future of Gaming in Ohio was part of the budget package the legislature passed last year – the same measure that doubled the tax rate for Ohio sports betting operators.

Commission members, who included eight state lawmakers and representatives from Ohio’s lottery, casino commission and racing commission, held four meetings this year to receive input from stakeholders and the public. Each of the sessions focused on a different gaming sector: Lottery, sports betting, casinos and horse racing. The report includes letters from participating lawmakers as well as testimony given by operators, regulators and interest groups.

The report also became public during a tumultuous period within the state’s sports betting market. In the last month alone, four operators have either shut down their Ohio sports betting apps or announced their closure would happen soon.

Ohio iGaming Support Grows

When most in the U.S. gaming industry think about its future, they turn to online casino gaming, also known as iGaming. Legalized iGaming began in New Jersey and Delaware five years before the PASPA case in 2018 opened the door for sports betting’s expansion into Ohio and three dozen other states.

However, while sports betting grew rapidly over a short period, iGaming has only been approved in seven states. Three of those – Michigan, Pennsylvania and West Virginia – border Ohio.

The commission heard from stakeholders about iGaming, and the consensus was there was no consensus. Not even among the state’s casino and racino operators, who had differing opinions on which licensees should have rights to offer the apps. Retail trade groups, such as the Ohio Grocers Association, the Bowling Centers Association of Ohio and the Ohio Coin Machine Association, all expressed concern at the possibility of iGaming and online lottery encroaching upon their members’ livelihoods.

Lawmakers See iGaming Value, Red Flags

With that as the backdrop, lawmakers don’t expect iGaming legislation to go far in Columbus, at least for the near term.

State Sen. Nathan Manning, R-North Ridgeville, told BetOhio.com that the revenue Ohio iGaming could generate would be substantial and could provide new revenue for education, first responders or other great causes.

"But there’s also, I think, a huge hesitation just because we have seen a big increase in problem gambling through sports betting that we just implemented recently,” said Manning, who co-chaired the study commission. “So, this is me speaking, not the commission. Pump the brakes a little bit. We’re not moving forward, but let’s learn from other states and see what’s happening in other states. Let’s get the data, analyze it and see what the best way forward is because it will probably be coming at some point.”

Another commission member told BetOhio he doesn’t expect the state to consider iGaming until after Gov. Mike DeWine’s term ends in two years.

Even then, state Sen. Bill DeMora (D-Columbus) said he has concerns about the impact online gaming will have on retailers and brick-and-mortar casinos. That includes the Hollywood Columbus Casino, which will move into his district starting next year.

DeMora is not anti-gaming by any stretch. He has attended the Kentucky Derby in each of the last 35 years, and he said he has four Ohio sports betting apps and four racing apps on his phone.

Rather, he’s worried about the impact iGaming would have on the union workers employed at the casino and on the trades workers who have helped build and expand the gaming facilities.

“I’m open to listening and learning,” said DeMora, who billed himself as the most pro-labor lawmaker in the state. “ … Until I see facts and figures that don’t come from the industry – that come from some non-invested person – if they can prove that they’re not going to lay off good union workers at the casinos, then I’m open to it.”

‘Math Doesn’t Work’ For Some Without iGaming

Legalizing iGaming in Ohio might be the only alternative that can help the state keep smaller online operators in the long term. By the end of August, four of the 19 that took sports betting wagers in May will be out of the state.

Bryan Bennett, a former gaming executive who is now an industry consultant, believes more operators will pull out if Ohio doesn’t follow the path of states that have approved iGaming.

“The math just doesn’t work,” he told BetOhio in a Monday interview. “It’s more than just the high cost of marketing. There are also the high costs of compliance, licensing and IT that comes with the highly fragmented nature of the U.S. regulatory framework.

“I hope I can be proven wrong as I’m still a huge advocate for the space, but I think we have enough data points to show that, while not perfect, Michigan and New Jersey got more right than everyone else at this point."

Model iGaming Legislation In The Works

As Ohio lawmakers ponder the future of gaming, NCLGS members have been working on model iGaming legislation. The group hopes it can be used as a template for states like Ohio when it comes time for them to consider expansion.

The group first announced the plan to draft legislation earlier this year. Since then, NCLGS has held meetings to discuss what the legislation should cover. Members of the group tasked with creating the measure gave conferencegoers an update last week, and they expect to have a final version to present to lawmakers at the organization’s winter meeting in New Orleans this December.

NCLGS President Shawn Fluharty told BetOhio that the organization would accept public comments on the document, similar to how legislative bodies work in a “transparent” process.

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