Several online gaming bills have been filed in legislatures over the last few months. None of those have been successful so far, but there is now a chance in another state.
A legislator in the Buckeye State filed a bill this week to legalize Ohio online casinos, which would include poker.
Sen. Nathan Manning introduced SB197, which would also legalize lottery sales and horse race wagering online. The plan features two levels of taxation and fees, depending on whether a casino in the state runs its own platform or partners with an outside operator.
“We kind of put this together very quickly, but I will say we’ve been working on this for years,” Manning said in a Senate Select Committee on Gaming meeting on Monday.
High Tax Rate & Other Details
The bill offers two different tax rates, depending on how a license holder operates. Properties that own at least 50% of an online gaming platform will pay $50 million for a five-year license, with a $5 million renewal fee, and be taxed at 36%.
On the other hand, casinos using a third-party platform would pay $100 million for a license with a $10 million renewal fee and a 40% tax rate. This would be the highest online casino tax rate of any state with legal online casinos.
New Jersey, Pennsylvania, Michigan, Delaware, Connecticut, Rhode Island and West Virginia all have lower tax rates for online casinos.
Manning estimates his bill would generate between $300 million and $1 billion annually for state coffers. The proposal outlines that 99% of that would go to Ohio’s general fund, with 1% earmarked for problem gambling prevention and treatment. Other legislators appear to have some interest in considering the issue.
“In some sense, I think as a state we’ve sort of turned the corner and said, ‘we’re going to raise money from gambling,’” House Speaker Matt Huffman told Statehouse News. “What I think public officials and most of the public recognizes is that people want services and they don’t want to pay taxes. And how do you solve that conundrum? One way is to raise revenue in a different way, and one [way] is through gambling.”
While lawmakers appear ready to discuss the issue, the high tax rate might be a dealbreaker. In April, legislators nixed Gov. Mike DeWine’s recent effort to raise the rate on online sports betting.
Senate Minority Leader Nickie Antonio expressed interest in discussing the issue. According to SBC Americas, house finance committee chair Rep. Brian Stewart is working on his own bill as well.
Adding Ohio to the country’s Multi-State Internet Gaming Agreement could significantly boost online poker liquidity. Pennsylvania recently joined the agreement and the MSIGA now covers 38 million Americans. The Buckeye State could add an additional 12 million to that total.
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