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The ongoing growth of iGaming in a small number of U.S. states has split the land-based casino industry between those operators that support further expansion and those opposing legalization, fearing the negative impacts on their brick-and-mortar casinos.
Leading casino operators MGM Resorts and Caesars Entertainment continue to advocate for iGaming alongside FanDuel, DraftKings and other members of the Sports Betting Alliance and iDevelopment and Economic Association (iDEA), arguing that online casinos in the seven established iGaming states have grown the overall industry and generated additional tax revenue.
On the opposite side of the debate are regional casino operators, including Cordish Cos., JACK Entertainment and Churchill Downs, who argue that online slot machines and table games cannibalize land-based casinos.
Although the divide was already evident last year, it has been on full display in 2025 in Maryland and, most recently Ohio, as land-based operators and sports betting companies do battle over iGaming bills.
Opposition from incumbent casino operators Cordish and Churchill Downs contributed to bills failing to pass in Maryland, where bills failed to receive a vote in committee before a March 17 deadline.
Opposition to both bills in Maryland was led by Baltimore-based Cordish and Churchill Downs, who are founding members of the National Association Against iGaming (NAAIG).
Cordish, which operates Maryland Live!, and Churchill Downs, operator of Ocean Downs Casino, are founding members of the National Association Against iGaming (NAAIG). Penn Entertainment also made it clear it would only support an iGaming bill if licenses were limited to Maryland's six existing casinos.
iGaming Bills In Focus In Ohio
The debate over iGaming legalization has since moved to Columbus, as House Bill 298, introduced by Republican Representative Brian Stewart, underwent its second hearing last week in the Ohio House Finance Committee.
Stewart’s bill would tax iGaming at 28 percent, with a license costing $50m and lasting for five years. The legislation sets a renewal fee at $10m.
Currently, there are two Ohio online casino bills being considered by state lawmakers.
Last month, Senate Bill 197, authored by Republican Senator Nathan Manning, was discussed in two separate hearings before the Senate Select Committee on Gaming. That bill would levy a 36 or 40 percent tax on iGaming with a $50m initial fee and a $5m renewal fee.
Both pieces of legislation only allow Ohio’s casinos and racinos to be licensed as an iGaming operator, although casinos and racetracks could also partner with external brands to offer iGaming on their behalf.
Scott Ward, a lobbyist with the SBA, a trade association representing FanDuel, DraftKings, Fanatics and BetMGM, opposed HB 298’s limitation of only seven total platforms being available under the bill.
“At only seven, Ohio would exclude highly popular, and market-leading brands preferred by consumers elsewhere, undercutting potential license and tax revenue,” Ward said of the proposal.
Penn Entertainment, Boyd Gaming, Hard Rock International, Caesars Entertainment, Delaware North, Churchill Downs and Cleveland-headquartered JACK Entertainment all operate casinos or racinos in Ohio. MGM Resorts International’s BetMGM, a 50-50 partnership with Entain, could also be licensed to operate in Ohio through its MGM Northfield Park racino.
Ward said the SBA would support an iGaming market tethered to eleven in-state casinos and racinos, with each facility having the opportunity to license two mobile platforms, resulting in the ability to have up to 22 sites.
Chad Barnhill, executive vice president and COO for JACK Entertainment, also opposed HB 298 as written because it contradicts a constitutional amendment approved by Ohio voters in November 2009 that legalized only four land-based casinos to offer both slot machines and table games.
Ohio legalized racinos through an executive order, not a constitutional amendment, in 2011 and racinos are limited to gaming machines and sports betting. JACK Entertainment, which is a member of NAAIG, also operates JACK Thistledown Racino.
“Any expansion to the form of casino gaming offered in the state must be done in a way that respects the constitutional requirements for where casino gaming can occur and who is authorized to conduct it,” Barnhill said in written testimony submitted to the House Finance Committee.
Jason Tosches, senior director of government affairs for Hard Rock Digital, a division within Hard Rock International, agreed, saying, “The only path to authorizing iCasino in Ohio is through the state’s four casinos”.
Hard Rock is not a member of NAAIG, but a Hard Rock-branded casino in Sioux City, Iowa, which is operated by Churchill Downs, is on the organization’s list of members.
“Setting aside the limitations in the Ohio Constitution for a moment, digital-only operators have not made nearly the same investment as we have in the state … and should not be permitted to enter the casino gaming market with iCasino,” Tosches said.
Barnhill added that iGaming untethered to existing brick-and-mortar casinos would be a threat to Ohio businesses and employment.
“Every market has limits on discretionary dollars, and gaming is no exception,” Barnhill said. “No matter what reports are presented to suggest otherwise, the economics are simple: online consumption cannibalizes retail activity.”
