Ohio Gov. Mike Dewine is not too keen on adding online casinos to the state’s growing gambling market. He shared his concerns with Cleveland.com last week.

“Just so everybody understands, this would be 24-7. Anybody who’s got an iPhone could basically have a casino there. And the potential for addiction is just massive.”

The comments were made as state lawmakers consider a pair of bills, Senate Bill 197 and House Bill 298, both of which would add iGaming alongside legal sports betting in the state’s gambling marketplace.

Worried about gambling addiction

As noted by Legal Sports Report, DeWine did not outright state that he would veto an online casino bill should it come across his desk.

However, his comments indicated that he will not be singing full-throated support for the eventual expansion if a bill is approved by the Ohio General Assembly.

“This literally puts it in anybody’s hands – a 19-year-old, an 18-year-old, a 16-year-old,” said DeWine. “It puts in their hands the ability to game constantly, all day, any day, 2 a.m. in the morning. It’s right there.”

House Speaker Matt Huffman (R) also is not fully invested in the idea, but he recognizes the need to raise more tax revenue and understands iGaming is an option to do that.

Lawmakers last year presented a study that contained several endorsements for online casino legalization, which would help generate tens of millions of dollars in annual gaming taxes for the state. The study also said that DeWine’s decision to double the sports betting tax rate from 10% to 20% in 2023 was “premature.”

DeWine earlier this year attempted to double the betting tax again to 40%. He cited the primary goal of increasing state revenue to fund projects such as professional sports stadium builds and to develop youth sports programs.

Legislators passed the state’s annual fiscal budget only after the 40% tax proposal was removed.

Money to be made

HB 298 calls for Ohio to legalize online casino games such as poker, roulette, and video slot machines. It would implement a 28% tax on online gambling, surprisingly lower than the 33% charged to retail casinos.

Scott Ward of the Sports Betting Alliance said the difference was intentional.

“A casino is going to have hotel revenue, food revenue, entertainment revenue, all of those things which are taxed at much lower rates by the way than 33%, and iGaming simply doesn’t have that.”

The bill would also outlaw sweepstakes casinos, credit card deposits, and promotional bonuses for players.

SB 197 is backed by Sen. Nathan Manning (R-13).

Besides the legalization of online casinos, it calls for legal parimutuel betting and iLottery. It would charge a 36% tax on gaming revenue that could rise to 40% if platforms contract through a third party, such as FanDuel and DraftKings. Licensing would cost $50 million under both bills.

Manning estimated his bill would generate $600 million to $900 million in annual tax funding once the market captures the believed $2 billion in wagers now funneled through illegal gambling sites.

State officials have discussed both bills several times. Each would create 11 licenses for the state’s casinos and racinos.