Ohio lottery players could purchase tickets right from their phone

By Kate Northrop

An Ohio lawmaker introduced a bill last week that would make it legal for the Ohio Lottery to sell lottery tickets directly to players online.

Ohio legislators are welcoming discussion about potentially legalizing online lottery gaming with the introduction of a new bill.

Senate Bill 197, sponsored by Senator Nathan H. Manning, would authorize the Ohio Lottery Commission to operate Internet-based lottery games, opening the door to a realm of possibilities that could include virtual scratch-offs, online draw game ticket sales, and other digital instant games in the state of Ohio.

"Online gambling is already here in Ohio," Manning testified during an Ohio Senate Select Committee on Gaming on Wednesday. "It's not legalized, but it is an estimated hundreds of millions of dollars of illegal gambling happening right now on your cellphone, on your computers."

Manning cited that neighboring states Michigan and Pennsylvania generate $190 million and $195 million from online lottery sales, respectively.

"This is a significant revenue generator that certainly could help us find a lot of great projects and do a lot of great things in this state," he said.

The recent legalization of sports betting is a great example that illustrates the reasoning behind the proposed change, Manning explained. Lawmakers recognized that it was "a win-win" to legitimize the practice, primarily because it generated additional revenue for the state and put regulations in place that protected players.

Manning said that the lottery finds itself in the same "commonsense" situation — that although a regulated online lottery is not currently legal, there are still "third-party vendors that are not regulated," referring to courier services.

The legislation would give the lottery commission full agency to create a set of rules to correspond with the new digital space, most notably regarding responsible gaming measures and protections for players. Players would have to be physically located in the state of Ohio to purchase Ohio Lottery tickets.

"The internet gambling platform shall use geoblocking technology... that is obtained from an internet gambling supplier to prohibit individuals who are not physically present in this state from participating in internet gambling through the platform," the bill states.

Additionally, the bill would require the player to verify their age and identity by examining their government-issued identification. Only players who are at least 21 years old may purchase tickets online.

System communications and data would be secured using "an encryption methodology that ensures data integrity and prevents data theft," the bill stipulates. Daily authentication checks on gaming equipment connected to the lottery's systems would also combat unauthorized use of a player's online account, as well as prevent underage individuals or participants in the Ohio voluntary exclusion program from making a purchase.

Manning testified that the proposed change would work "hand-in-hand with the brick-and-mortar" retailers and "not hurt their revenue." Other state lotteries have reported increased retail sales as a result of enacting a digital platform compared to other states that do not offer direct online sales to players.

Still, legislators have worked in a provision that aims to offset any potential losses to retailers from players migrating to online purchases. As mandated by the bill, the Ohio Lottery would be required to pay 3.5% of its internet lottery revenue to retailers every quarter.

Senator William P. Demora questioned whether the proposed online gambling and lottery expansion would violate the state constitution, making it not worth pursuing unless they amended the constitution.

"If we start doing all this — making changes — and then it gets overruled in court, are we just spinning our wheels?" Demora asked Manning.

Anticipating the question, Manning read from a prepared statement: "The General Assembly has legalized several different forms of gambling outside the constitution before, including card games at charitable festivals across the state, horse racing, video lottery terminals, sports gaming, as well as legalizing and regulating adjacent items such as skill-based amusement machines and sweepstake terminals. None of these have been found to have been unconstitutional, even though some may look like other forms of gambling."

A second hearing for the bill will take place on May 22, 2025. If it passes out of committee after the third hearing, it will move to the full Senate for consideration. A pass by majority vote in the Senate means it would move to the House and repeat the same process there before making it to the Governor's desk to be signed into law.