Rep. Brian Stewart has confirmed that he is working on a proposal to legalize online casinos in Ohio. The legislation could allow legal online poker and other casino games in the Buckeye State.
Stewart is seeking new sources for tax revenue after plans to raise existing gambling taxes were removed from Gov. Mike DeWine’s budget. A report published last year by the Study Commission on the Future of Gaming in Ohio recommended legalizing online gaming.
“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,” Reps. Jay Edwards, Jeff LaRe and Cindy Abrams wrote in the report.
They went on to add that other states have seen “significant increases to tax revenues generated with greater participation” in online gaming and lotteries, and that “These tax revenue benefits to the state and funding that could be provided to our K-12 education system cannot be overlooked”.
Ohio’s casino gaming landscape
The state operates 11 land-based casinos, generating substantial revenue. In 2024, they reported a combined revenue of approximately $1.1 billion, suggesting high demand for Ohio online casinos.
With no legislation currently in place, residents use unregulated platforms in high numbers. Last year, it is estimated that sweepstakes casinos and other unlicensed operators generated $3.7 billion in revenue from Ohio users.
As cited in the report last year, neighboring states that have legalized online gaming have seen substantial revenue generated by the industry. Pennsylvania legalized online casinos in 2019 and operators saw $1.5 billion in revenue last year. With a 54% tax rate on slots, and 36% rate on sports betting, the state collected approximately $2.66 billion in tax revenue and fees from gambling activities in 2024.
Michigan reported similarly high numbers, with $1.2 billion generated by state-licensed online casinos in 2024 after legalizing in 2021. Tax rates are lower than in Pennsylvania at 20-28% for online games, which led to around $500 million being collected.
Appetite for gambling in the Buckeye State
Ohio sports betting was legalized in 2021 with the first online sportsbooks launching in 2023. Ohioans wagered nearly $8.9 billion on sports in 2024, which led to state-licensed operators generating $899 million in revenue. Despite legalization, unlicensed operators outstripped these numbers, generating over $1.5 billion. This includes sweepstakes, offshore sportsbooks, and prediction markets.
Only in Texas, where there is no legal online sports betting, was more revenue generated by unlicensed operators. These figures were published in a report by Yield Sec last month.
The gambling industry in Ohio, therefore, presents a big opportunity for lawmakers to generate funds for the state. A proposed tax hike on sports betting from 20% to 40% was removed from the budget, so legalizing online casinos could be another route to increasing state funds.
Last year, former Senator Niraj Antani introduced an online casino bill, proposing that licenses be tied to the state’s 11 casinos and racinos. The bill failed to progress, but Antani noted that legalizing sports betting took over 3 years and 30 bill iterations. Stewart will be hoping the process of legalizing online casinos is considerably shorter.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
1
20
20
