Ohio Gaming Debate Heats Up Over Potential Impact of iGaming on Traditional Casinos

19.04.2024

A top executive from JACK Entertainment has voiced strong concerns about the potential introduction of online casinos in the state.

Industry Split on iGaming

Daniel Reinhard, Senior Vice President of Government Affairs at JACK, argued before the Study Commission on the Future of Gaming in Ohio that online gaming could have a devastating impact on physical casinos, similar to the effect online shopping has had on retail malls.

According to Reinhard, the legalization of online slots and interactive table games could lead to significant business downturns and job losses within the state’s brick-and-mortar casino sector.

While JACK Entertainment has expressed opposition due to the risks to traditional gaming floors and their associated jobs, other major players in the industry see it differently.

Representatives from MGM Resorts and Penn Entertainment, for instance, testified to the Study Commission that they support the authorization of iGaming, viewing it as a complementary offering that can drive overall growth and increase tax revenues.

Mixed Results in Other States

Data from other states with both brick-and-mortar and online gambling present a mixed picture. In Michigan and West Virginia, physical casinos experienced declines in gross gaming revenue (GGR) in 2023, while their iGaming counterparts saw substantial revenue increases. Conversely, in states like New Jersey and Pennsylvania, while traditional casinos also saw increases in GGR, the growth rates were significantly outpaced by those of iGaming platforms.

In Ohio, the commercial gaming industry currently includes live dealer table games at four land-based casinos and slot machines at both casinos and racinos. The state is now at a crossroads as it considers expanding into iGaming, a move that proponents argue could enhance consumer choice and capture additional discretionary spending on gambling.

The Ohio Legislature will await recommendations from the 11-person Study Commission, which is expected to conclude its assessments by June 20, 2024.