A new proposal spearheaded by Ohio Representative Brian Stewart could reshape the state’s gambling landscape by legalizing online casino gaming, or iGaming. As Ohio navigates budget revisions and economic planning, the potential to tap into digital gaming platforms has re-emerged as a focal point for revenue generation. Drawing from research conducted by a state commission, lawmakers believe that iGaming could enhance public engagement and bolster tax receipts without raising existing tax rates. While enthusiasm builds for this modern expansion, caution remains over its implications for traditional casinos and racinos operating across Ohio.

iGaming Bill Emerges Amid Ohio’s Budget Negotiations

Representative Brian Stewart, chair of the House Finance Committee, is preparing legislation to legalize online gambling across Ohio, aiming to establish a new, non-intrusive revenue stream for the state.

Stewart’s forthcoming bill is framed as a strategic alternative to tax hikes, offering a digital gateway for casino-style games accessible via smartphones and computers. The proposed measure comes at a critical moment, as Ohio’s budget undergoes re-evaluation. The House recently made sweeping changes to Governor Mike DeWine’s spending plan, notably removing tax hikes on sports betting operators that were initially earmarked to support sports infrastructure.

This move highlights a broader Republican strategy of avoiding new taxes while identifying other ways to enhance state coffers.

Ohio’s Digital Gambling History Lays the Groundwork

The current push for iGaming legalization is not without precedent. Two years ago, Ohio lawmakers embedded a provision in the state budget to form a commission tasked with evaluating the viability of iGaming and online lottery (iLottery) services.

In July of the previous year, the commission released its findings, affirming that states that had embraced online gambling saw marked growth in public participation and, more importantly, significant tax revenue increases.

The commission’s conclusions were backed by legislators Jeff LaRe, Cindy Abrams, and former Representative Jay Edwards, who emphasized that the expansion of digital gambling platforms has historically complemented rather than cannibalized physical gaming venues.

Online Gambling Seen as a Boost, Not a Threat, to Traditional Venues

One of the key insights from the commission’s study is that states with legalized iGaming observed broader participation in gambling overall, not just within digital domains. Contrary to fears of declining footfall at physical casinos, the data suggest that online platforms can drive parallel growth in both virtual and land-based sectors.

However, lawmakers remain cautious. Concerns persist over the potential for digital gambling to erode revenue and attendance at Ohio’s four casinos and seven racinos. These traditional establishments are integral to the state’s existing gaming economy and maintain a strong influence on public policy related to gambling legislation.

Stakeholder engagement is expected to be a central component of any forward movement on the bill, ensuring that both digital innovation and legacy operations are considered in tandem.

Education Funding Could Benefit from iGaming Tax Revenue

Beyond bolstering state income, lawmakers are looking at how the potential revenue from iGaming could be strategically allocated. According to the commission’s report, directing these funds to support K–12 education could help address long-standing budgetary shortfalls in public school systems.

This approach offers a politically viable justification for expanding gambling, aligning new tax revenues with widely supported public services. Such alignment may help broaden legislative and voter support for the bill, especially among those traditionally wary of gambling expansions.

Timing Aligns With Senate Budget Review

Stewart’s legislative push arrives just as the Ohio Senate undertakes its review of the state budget, adding to the urgency of the conversation. Notably, the House has already stripped proposed tax increases on several items, including sports betting, marijuana, and cigarettes, signaling a clear aversion to new levies.

In this fiscal climate, iGaming emerges as a palatable solution—generating fresh income without imposing new tax burdens on existing businesses or citizens.

By allowing Ohio to capture a slice of the rapidly growing digital gambling market, the state positions itself alongside early movers like New Jersey, Pennsylvania, and Michigan, all of which have realized significant financial windfalls from regulated online gaming.