Ohio Senator Wants to Legalize Online Poker and iGaming
Most online poker legislation appears at the beginning of the calendar year. State lawmakers introduce bills in January or February, and they try to gain committee approval and then floor votes. That is an oversimplification of the process, but the timeline typically starts early in the year.
Ohio likes to spice things up. The legislative session runs throughout the year, as it does in Michigan and New Jersey, with Pennsylvania operating its legislature through the end of November. Ohio doesn’t operate daily, obviously, but it does currently have sessions set as follows:
- November 13: Senate session
- November 19: Senate committee hearings
- November 20: Senate and House sessions
- December 3: Senate committee hearings and House session if needed
- December 4: Senate and House sessions
- December 10: Senate committee hearings and House session if needed
- December 11: Senate and House sessions
- December 17: Senate committee hearings
- December 18: Senate and House sessions
- December 19: House session if needed
With that in consideration, it is not out of the ordinary to see a new bill appear at any time of the year. Ohio State Senator Nuraj Antani introduced SB.312 on September 4.
The caveat, however, is that Antani is currently serving his last term as a state senator. If he wants this to happen, it must happen in the next several months.
Internet Casinos (and Poker)
Senator Antani’s SB.312 is called “Legalize and regulate internet casino gaming; levy a tax.” It’s not catchy, but neither is the long title that lists dozens of sections of the current law and new provisions to add to gambling laws, which is followed by “to legalize and regulate casino gaming in this state, to modify the law governing online sports gaming, and to levy a tax on businesses that provide internet casino gaming.”
Ohio currently has four casinos and seven racinos in operation, and all of them would be able to partner with an online gambling operator to participate in the new system. Some of the details of the bill pertaining to online casino games and online poker include:
- Tax rate will be 15%.
- License application fee will be $100K.
- Fee to actually obtain a license will be $300K.
- Annual license renewals will be $500K.
- Licensees must pay $250K into a problem gambling fund.
- Ohio Casino Control Commission will regulate the new industry.
The entire bill is 146 pages long. While poker is not mentioned once, casino gaming is believed to include online slot games, video poker, table games, and traditional peer-to-peer online poker.
Based on Ohio Gaming Study
Speaking of long reads, the Report of the Study Commission on the Future of Gaming in Ohio is 354 pages. It was released in July 2024, the result of a study commissioned by the General Assembly. The purpose was to examine the current gambling revenue for Ohio and that revenue’s future, which may incorporate newer technology and industry changes. With members of both legislative bodies in Ohio, as well as representatives of the state’s gambling and racing regulators, they completed the study and released the lengthy findings in July.
The findings related to online gambling varied.
The Republican House members reported the following:
- Online casinos want the same options that online sports betting enjoys.
- Brick-and-mortar gambling facilities and lottery retailers expressed concern about revenue cannibalization.
- States with online lotteries and igaming see great tax benefits and increased traditional gaming revenue, citing states like Michigan and Connecticut.
- Expansion should include online lottery games and online casino gaming but with a strict regulatory framework and an eye on problem gambling.
State Senator Al Landis does not support the lottery expansion or any types of virtual gaming. “My position is to maintain the status quo” with brick-and-mortar establishments.
State Representative Rose Sweeney found pros and cons of igaming but supported online poker:
- Online gaming is inevitable.
- iGaming must be tethered to land-based casinos for balance.
- Legalized igaming could generate $500M to $650M in annual tax revenue for Ohio.
- Process cannot be rushed.
- Cannibalization worries are concerning.
- “The state could legalize only one type of igaming, such as online poker, to test the waters while still chipping away at the illicit market.”
Ohio Lottery Commission Director Michelle Gillcrist fears that online casino games could hurt the lottery’s profits and its contribution to education funding.
Finally, iDEA (iDevelopment and Economic Association) provided testimony (starting on page 123 of the report) in support of igaming.
It pointed out that anyone who wants to play online poker or online slots can do so via offshore websites that are not regulated by the Ohio government. “By transitioning from unregulated to a regulated environment, Ohio can ensure that all igaming operations adhere to strict standards of fairness, data protection, and responsible gaming practices.” iDEA also noted that igaming supports land-based gambling through cross promotion, loyalty programs, and an introduction of new players.
Chance for Success Unclear
What is clear by scanning the study is that some involved in the process of gambling decision-making for Ohio don’t understand the difference between online casino games with a casino advantage and online poker, which is played as a player-to-player game. In addition, some seem to believe that video poker is the same as online poker, which – again – is not the case. There is also the skill component in poker that should be understood to set online poker apart from the other games.
The suggestion that Ohio try online poker first is a positive step. It won’t show the hundreds of millions of dollars in annual tax revenue that they want to see, but it will provide an opportunity to show how geolocation, responsible gambling programs, and cross-promotions work.
Senator Antani is likely to try to get SB.312 into a November hearing to discuss the details. There won’t be much time thereafter to put together any amendments and send a bill to the floor for votes. However, with the study’s numbers and evidence, much testimony, and years to watch how other states have grown thriving igaming industries, there is a real possibility that Ohio could legalize online poker in 2024.
