Senate gaming panel adopts substitute for SB 197; operators back legalization but warn high fees, tax structure could limit legal market

The Select Committee on Gaming adopted a substitute to Senate Bill 197 during a second hearing and then heard testimony from casino operators, industry trade groups and other interested parties about a proposed regime for legal internet casino gaming (iGaming) in Ohio.

The substitute requires that any Internet gambling game using physical equipment be conducted by persons physically located in the state, aligns multiple gaming licenses to a single renewal schedule, loosens restrictions on Internet lottery offerings and adds or strengthens responsible-gaming protections, proponents said. The committee adopted the substitute without objection and kept SB 197 open as a second hearing for additional work and scheduling.

Why it matters: supporters told the committee legal iGaming would move Ohioans away from unregulated offshore sites, produce new tax revenue, and create consumer protections not available on illegal platforms. Opponents and some witnesses warned that high licensing fees and the bill's current tax structure could effectively exclude many operators, reducing competition and limiting the state's ability to convert illegal play into taxable, regulated activity.

Trevor Hayes, with Caesars Entertainment's online division Caesars Digital, told the committee his company's experience in other states shows iGaming increases visitation to physical casinos. "We have the proof of concept. We've been doing this in New Jersey since 2014," Hayes said, adding that Caesars' Scioto Downs employs about 455 people and that the company believes iGaming is…