A proposal in the Ohio Senate would expand online gaming to include casino games, lottery and horse betting. Similar legislation is working through the Ohio House, too. But dramatically expanding the scope and availability of gaming has drawn a wide array of critics.
Between charging operators at least $50 million in licensing fees and imposing a tax rate of at least 36% on gambling receipts, the Senate proposal would generate a substantial sum of money. Legislative researchers peg the annual tax collections at almost $175 million. The bill’s sponsor and the gambling industry suggest the eventual figure could be double or triple that much.
But some critics, already in the gaming industry, worry about sharing the market with new entrants. Others, oppose the idea for religious or mental health reasons. Last week they made their case to state lawmakers.
What the bill does and who wants it
State Sen. Nathan Manning, R-North Ridgeville, describes his bill as a way to “modernize” gambling in the state and bring Ohio in line with several of its neighbors. At hearing earlier this month he argued that online gambling is already happening, but it’s unregulated.
“Just like sports betting,” he explained. “There was a lot of illegal sports betting happening. When we legalized it, most of that went to the legal form, and we have additional protections in place there, and we also then get additional revenue to the state, so it is a win-win.”
The proposal would take a tiered approach to gambling taxes. Online sports betting would hold steady at its current rate of 20%, but sports betting at brick-and-mortar casinos would drop to 10%. Online casino-style games would be taxed at a higher rate — 36% for operators with a physical presence in Ohio and 40% for those who don’t.
In addition to expanding online gaming opportunities, the bill expands the role of the Ohio Casino Control Commission. Oversight duties handled by the state racing commission, attorney general and lottery commission would fall under the casino control commission’s purview.
Not surprisingly, the bill’s supporters include casino operators. Trevor Hayes from Caesars Entertainment said they’ve been providing online gaming in New Jersey since 2014, and it’s been “additive” to their physical operations.
“We’ve found that our brick-and-mortar customers that have then tried online gaming now visit our properties 55% more,” he said.
Still, others raised complaints about how expensive a proposition it would be to establish online gaming. Ryan Soultz from Boyd Gaming offered a blunt assessment.
“I’ll just point out that fee structure that’s in the bill today would be the highest in the country,” he said.
The $50-million price tag would far outstrip the highest existing fee, which is the $10 million charged in Pennsylvania.
Gambling’s critics
The Center for Christian Virtue held a press conference ahead of the latest hearing to announce more than 100 pastors around the state have signed an open letter opposing the legislation. Pastor and state Rep. Gary Click, R-Vickery, described the bill in predatory terms.
“We know that gambling appeals to those who have the lowest education, the lowest income and the greatest debt,” Click said. “As we increase gambling, especially online gambling, we are hurting, we are harming, the most vulnerable people in the state of Ohio.”
In the committee hearing, CCV’s David Mahan pushed back on claims that the bill wouldn’t lead to more problem gaming.
“Does anyone actually believe that increased access, convenience and anonymity will not lead to increased addiction?” he asked.
He pointed to a presentation developed by an AI-gaming company called DegenX that bragged they “weaponize data to make games addictive” and build games to achieve “higher customer lifetime value.”
“Addicts,” Mahan said simply.
Brianne Doura-Schawohl from the Campaign for Fairer Gambling pointed to studies suggesting online gambling is particularly addictive.
“When we take one of the most addictive products and put it on the most addictive devices, researchers have found that this is a product that is 10 times more addictive than that of other gambling products.”
She added that the lion’s share of the industry’s revenue comes from a tiny sliver of bettors — many of whom are problem gamblers or at risk of becoming one. All the benefits promised by casino operators, she argued, are outweighed by the social costs Ohioans will ultimately bear.
“Research is very clear: If you expand gambling, you will increase the number of problems. And please remember this is not an individual problem; it’s a family problem; it’s a community problem; it’s a state problem.”
Tony Coder, who heads up the Ohio Suicide Prevention Foundation, said 2023 was the first year since COVID where the number of suicides in Ohio declined.
“One percent — that’s 20 folks, though — 1%,” he said. “I want to see those numbers continue to go down, and this legislation, just by everything that we’ve seen, it’s not going to help that.”
This story was originally published by the Ohio Capital Journal and republished here with permission.
This article appears in May 28 – Jun 10, 2025.