Two recent initiatives, the proposal appearing on the November ballot to authorize four casinos in Ohio’s largest cities and the video slot machines ordered by Governor Strickland to be installed in Ohio’s seven racetracks, could make Ohio the third largest state for gambling revenue. Some analysts project that as much as $3 billion could be spent on gambling in Ohio in 2013. However, the rollout of the four casinos may be delayed or the scope of the projects altered to account for the increased competition from the racetrack slots, which could reduce this projection. 

Although four of the five states surrounding Ohio have gambling, experts agree that there is still gambling money to be made in Ohio. Ohioans currently spend $1.4 billion annually on gambling in other states. And while the racetrack slots are not likely to draw tourists from other states, the casinos may attract out-of-state visitors, which could result in a net economic gain in the state. 

Gambling at the casinos and racetrack slots will be a significant source of revenue for the state. Owners of the racetracks operating the video slot machines will each pay a $65 million licensing fee to the state and a 50% tax on revenue from the slots. The four proposed casinos would each pay $50 million licensing fees to the state as well as a 33% tax on casino revenues. Some analysts say the slot licenses are worth anywhere from $150 to $400 million each, and that the state could have received more money by auctioning the licenses to the highest bidder. But the governor and lawmakers who supported the slots found the fee to be reasonable in order to both generate income for the state while allowing the racetracks to thrive.