The Unyielding Battle: Brick-and-Mortar Casinos versus Online Gambling in Ohio
Opposition Mounted by JACK Entertainment Against Proposed Online Gambling Legalization in Ohio
In contrast to the widespread legality of sports betting across many US states, online gambling is only permitted in seven states, with prominent ones like Pennsylvania, Michigan, and West Virginia making the list. This legislative discrepancy has brought the issue of online gambling to the forefront once again in neighboring states, including Ohio. The debate centers around the potential financial benefits and detrimental effects on the established land-based gambling industry.
While proponents argue that legal online gambling brings additional tax revenue, their land-based counterparts express concern about a potential negative impact on the industry. A study by the Innovation Group shed light on this matter, revealing that casinos in Pennsylvania, Michigan, and West Virginia experienced a decline of over 10% in their revenues since the advent of online gambling.
Daniel Reinhard, the SVP of government affairs for JACK Entertainment, shares similar concerns. Based in Cleveland, JACK Entertainment holds a strong presence in Ohio's brick-and-mortar gambling sector and recently spoke out against online gambling during a committee meeting focusing on the topic's future in Ohio. Reinhard likened the impact of online businesses on local retail establishments to the potential harm that legal iGaming could inflict on brick-and-mortar casinos.
"Just like online retail has annihilated local retail, iGaming will do the same under any logical scenario," Reinhard predicted, foreseeing a grim future for the retail gambling sector in Ohio should online gambling become legal. He warned of massive losses for brick-and-mortar gambling venues such as casinos and racinos as a result of the shift towards online gaming.
The potential tax revenue that iGaming may generate has been debated, with estimates ranging between $200 million and $400 million in extra gambling tax revenue. However, Reinhard contends that such an expansion would go against existing state laws and might trigger the cannibalization of the local economy.
In addition to his stance against online gambling, Reinhard also supports the idea of reducing taxes for sports betting operators. "JACK encourages the legislature to reconsider and reduce the tax increase placed on the industry, or at least consider reducing taxes on retail operations based on significant Ohio capital investments and Ohio employment," he expounded.
Initially, sports betting in Ohio was subject to a 10% tax before lawmakers administered tax hikes. Reinhard believes that lowering taxes could positively impact the sector; however, he still acknowledges concerns related to the small share of retail bets in comparison to mobile wagering.
As the debate evolves, both sides weigh the potential advantages and disadvantages of legalizing online gambling in Ohio. Brick-and-mortar casinos like JACK Entertainment are at the forefront of these discussions, seeking to protect their market share and maintain the stability of the Ohio gambling landscape.
- Despite the legality of sports betting in various US states, online gambling is only permitted in seven states, such as Pennsylvania, Michigan, and West Virginia, creating a debate about its introduction in neighboring states like Ohio.
- Some argue that legal online gambling could bring in additional tax revenue, while land-based casinos fear potential negative impacts on the industry due to a decline in revenues witnessed in other states like Pennsylvania, Michigan, and West Virginia.
- Daniel Reinhard, SVP of government affairs for JACK Entertainment, expressed concerns about the impact of iGaming on the retail gambling sector in Ohio, predicting a decline similar to that experienced by local retail establishments following the rise of online retail.
- Reinhard is against online gambling, stating that it could lead to massive losses for brick-and-mortar gambling venues such as casinos and racinos, and believes that lowering taxes for sports betting operators, particularly for those with significant Ohio capital investments and employment, could positively impact the sector.
- Initially, sports betting in Ohio was subject to a 10% tax, but Reinhard advocates for reducing these taxes, acknowledging concerns related to the small share of retail bets in comparison to mobile wagering.
