Ohio is looking to expand gambling, but it presently lags behind Pennsylvania, which legalized online casinos in 2017. Pennsylvania’s Gaming Expansion Act is a blueprint for states like Ohio to follow. The act allows brick-and-mortar casinos to apply for online licenses and creates a trusted and regulated market.One key thing to take away from Pennsylvania’s framework is that customers can enjoy games while playing with real money on secure licensed platforms. This online expansion ties in with the regulations for physical casinos and keeps players safe regardless of their playing environment.Pennsylvania separates out interactive slots, table games and poker and requires separate licenses for each. This means operators focus on specific types of gambling and the player experience is more focused and secure. Ohio could adopt this model and structure its licensing process to increase state revenue and consumer protections. Following Pennsylvania’s segmented approach, Ohio could prevent illegal activity and fair play for its citizens. Economic Benefits: Learning from Pennsylvania’s GrowthBeyond regulation, Ohio can look to Pennsylvania’s economic growth since online casinos were legalized. In 2022, Pennsylvania’s iGaming generated over $1.2 billion in revenue, with a big chunk of that going directly into the state’s coffers. The state taxes online slots at 54% and table games and poker at 18%, which has funded public projects, education and property tax relief.Ohio could tap into this new revenue stream by adopting a similar tax structure. For example, Ohio could allocate online gaming revenue to local development, infrastructure or even addiction treatment programs to address any social issues around gambling. Pennsylvania taxing online slots higher than table games is a balanced approach as slots generate more profit margins, so it’s easier to justify a higher tax without scaring off operators.Responsible Gambling: Player and Public ProtectionOhio will need to think about how to protect its citizens from the dangers of online gambling. Pennsylvania has various safeguards in place, such as requiring operators to have self-exclusion programs and strict age verification to prevent underage gambling.One of Pennsylvania’s best measures is its partnership with established casinos. By working with licensed operators, the state ensures playing with real money is safe and regulated. This could be key for Ohio, where public trust in the gaming industry will be crucial for the market to work.Also, Pennsylvania has clear definitions of what is legal and illegal gambling, especially for clubs and organizations. Ohio could take a page out of that book and have legislation that draws a clear line between regulated online casinos and illegal unlicensed operators. This would stop unregulated sites from preying on players and operating outside state control.Technology and Consumer ProtectionAnother advantage of Pennsylvania’s system is technology for consumer protection. The state requires all online casinos to use certified random number generators (RNGs) for slots and table games. Ohio should follow suit with strict tech standards.Plus, Pennsylvania’s regular audits and security checks mean online casinos are transparent. Ohio should do the same so operators meet high standards. It’s good for players and good for Ohio’s online gaming industry.Local Adaptation: Ohio’s Special CircumstancesWhile Pennsylvania’s framework is helpful, Ohio has its demographics, politics and economics to consider. Ohio already has a gaming market with land-based casinos and racinos that generate a lot of revenue. Online casinos could be seen as the next logical step to add to those offerings.But Ohio will have to balance the interests of its physical casino operators with the online opportunity. Pennsylvania did this by linking online licenses to existing casinos so the two markets don’t compete directly. Ohio could do the same, where online platforms complement rather than compete with traditional gaming venues.But Ohio’s policymakers also need to consider public opinion. While Pennsylvania had broad political support for gambling expansion, Ohio’s approach should involve input from all stakeholders – local governments, casinos, and advocacy groups. Having all voices heard will help create legislation that’s effective and reflects Ohioans’ concerns.Future-Proof Online GamingTo stay ahead in a fast-changing gaming industry, Ohio must have future-proof online gaming laws. Pennsylvania did well by creating a framework that can accommodate new tech and changing consumer trends. Ohio can do the same by creating legislation that’s flexible and can add new gaming formats or tech as they emerge.For example, as VR and live dealer games become popular, Ohio could include those in its regulations. Then, the state can have an online gaming landscape that’s profitable and future-proof.A Strategic Path ForwardAs Ohio considers legalizing online casinos, Pennsylvania’s experience is a valuable lesson. By focusing on player safety, clear regulations and innovative tech, Pennsylvania has a thriving and secure online gaming market. Ohio can do the same.Now Ohio has to balance the economics with responsible gaming. Ohio can do that by following Pennsylvania.
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