A plan to expand gambling in Ohio to allow for betting on casino games, horse races and the lottery online seems to be on track to move quickly – maybe even to become part of the state budget. But there are key questions the idea brings up.
Senate Bill 197, a 700-page measure from Sen. Nathan Manning (R-North Ridgeville) would allow for iGaming and iLottery with a 36% tax rate, and a $50 million licensing fee.
"I think we can be up and running pretty quickly if we get this passed—certainly if it goes in the budget, obviously," said Manning in an interview after the committee he chairs heard the details of his bill. "The revenue the first year, a lot of people are projecting a little bit more like $300 million. In a fully mature market, more like $600 to $900 million."
Manning said the estimates are that Ohioans are already spending $600 million to $2.2 billion gambling on illegal websites.
"This is happening in the state of Ohio, illegal online gambling. So it's happening already. Let's get the safeguards around it. Let's help people that need help," Manning said. "And quite frankly, I mean, it's a big number, but I think it's like 2% of people have gambling issues. And while that is a significant amount of people in the state of Ohio, most people that want to be able to just do it responsibly are able to. It's a form of entertainment, really."
Sen. Bill DeMora (D-Columbus), who's also on the committee that heard Manning's bill, is concerned. He said he gambles on horseraces so he’s not ideologically opposed, but such a quick timeline for an idea that he’s not sure is legal angers him.
“I'm worried that we're gonna try to get this done in three weeks, four weeks, in time for the budget," DeMora said. "And anything rushed through the legislature ends up being [expletive] and having all kind of loopholes and stuff in it. And I worry about that."
Manning said his bill directs the revenue to the general revenue fund. DeMora also has questions about where the money would go.
"I am not supportive of raising this revenue and then giving it to a tax cut for the wealthy," DeMora said. "Stadium funding has been mentioned. I've heard it from several people. I want to see what the details are because I'm not just giving billionaires money to build domed stadiums because I'm morally opposed to that too."
Conservative groups including the Center for Christian Virtue have stated strong opposition to any expansion of gambling, saying more betting options victimize people already oppressed by the gambling industry.
Senate Minority Leader Nickie Antonio (D-Lakewood) has said at least some of this new revenue needs to go to mental health programs, because more gambling opportunities will likely mean more people addicted to gambling. House Speaker Matt Huffman (R-Lima) said last week he thinks the state has "turned the corner" when it comes to gambling as a potential revenue stream, but this week he raised more concern about gambling addiction as he suggested a possible future for the new revenue.
"At the moment, I think it ought to go into the General Revenue Fund. Maybe we can do that to reduce income tax or some other tax in the future," Huffman said. "But at the moment, until I see some other proposal, that's where I think we’ll be.”
