Ohio State Rep. and House Finance Committee chair Brian Stewart has confirmed he is drafting a bill to expand legal online gambling. If passed, the legislation would permit operators to offer online casino and poker games in addition to legal online sports betting to Ohioans of gambling age.
According to a report by WOSU Public Media, Stewart (R-Ashville) is championing the online gambling effort to generate more tax revenue for the state. The move comes as the Ohio Senate reviews the lower chamber’s budget bill, House Bill 96, which Stewart sponsored.
Bill would offset DeWine’s rejected tax increases
House Republicans passed HB96, the proposed operating budget, with a 60 to 39 vote in April after making substantial amendments to Gov. Mike DeWine‘s earlier proposal.
Notably, eliminating DeWine’s proposed tax increase on tobacco and vapor products, recreational marijuana, and sports betting were among the many changes. DeWine had floated the various tax increases to fund his policy priorities for the upcoming budget years.
Had it remained, DeWine’s proposed doubling of Ohio’s sports gaming tax would have funded stadium upgrades, construction, and student activity fees.
Specifically, the sports gaming tax increase would have helped pay for the proposed stadium and mixed-use development for the Cleveland Browns in Brook Park. Instead of the tax hike, the new bill earmarks $600 million in state-backed construction bonds for the new stadium.
Online gambling drives “significant” tax revenues
Stewart’s upcoming effort to legalize online casinos and online poker follows the establishment of a commission under the current budget to study Ohio’s online gambling opportunity.
The commission published its findings in a report last July, which found that states with legalized iGaming, iLottery, or both saw “significant” tax revenue increases due to greater engagement.
In the report, commission members Reps. Jeff LaRe, Cindy Abrams, and now-former Rep. Jay Edwards also noted that in-person lottery sales improved, too.
These tax revenue benefits to the state and funding that could be provided to our K-12 education system cannot be overlooked.
At the same time, the lawmakers cautioned that any implementation of online gambling must protect Ohio’s existing brick-and-mortar casinos and racinos. The retail gambling industry has voiced concerns about how online expansion could affect traffic at Ohio’s four casinos and seven racinos.
Time is of the essence
In Ohio, the Senate traditionally introduces its amendments to the budget in late May or early June. Governor DeWine must execute the final budget by midnight, June 30, 2025.
To be included, Stewart’s bill must move quickly through the legislature once introduced.
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