Ohio: Senator Manning’s New Omnibus Gaming Reform Bill + Key Takeaways on iGaming Provisions
Yesterday we received a new omnibus gaming reform bill from Senator Manning’s office. It is an ambitious bill (700+ pages), addressing lottery, sports betting, iGaming, Bingo, and other gambling-related areas. John Pappas provides key insights regarding iGaming provisions in the bill below.
Critical highlights from Manning bill regarding iGaming:
- Eligible Master Licensees: Restricted to existing casinos (4) and VLT/Racinos (7), totaling 11 potential internet gambling operators (IGOs).
- Skins Allowed: Each licensee is permitted one (1) skin.
- IGO Licensing Fees: Initial fee set at $50 million; renewal fee is $5 million, with licenses valid for 5 years.
- IGOs with proprietary platforms are exempt from paying additional licensing fees as an “Internet Gambling Management Company” (IGMC).
- IGMC Licensing Fees: $50 million initial fee; $5 million renewal (5-year license term).
- Fee exemption applicable only if IGMC is independently owned (not owned or controlled by contracted IGO).
- Reciprocal Licensing: Permits reciprocal licensing with other suitable jurisdictions.
- Tax Rates: Set at 36% for IGOs operating independently, and 40% for IGOs contracting with an IGMC.
- Supplier Fees: $50,000 application fee and $100,000 license fee, valid for three years.
- Bad Actor Clause: Disqualifies individuals/entities involved with illegal offshore wagering activities post-April 16, 2015.
- Integrity Monitoring: Mandatory implementation for iGaming operations. (not seen this before for iGaming)
- Enhanced Compliance Standards: Introduces stringent requirements for account creation, identity verification, geofencing, security measures, and certifications from Independent Testing Laboratories, impacting both iGaming and existing sports wagering operations.
For reference, we also provide an analysis of the Manning Senate bill (SB 197) by the Ohio Legislative Service Committee here.
The Select Committee on Gaming is scheduled to discuss the bill today at 4:00 PM ET (meeting details here). Stakeholder testimony may follow as early as next week. John Pappas and the iDEA Advocacy Team are closely monitoring things in Ohio and will provide updates as they become available.