Ohio is a state extremely rich in industrial heritage. It’s no surprise it took some time to finally emerge as a hub for digital innovation. While it took some time, Ohio has in recent years embraced digital transformation more than ever: Not only is it about adapting new technology, it’s also essential for economic growth. Competing not only with U.S. states but with international players in a global world is important. Digital industries like the online casino industry are becoming increasingly relevant, which highlights opportunities and challenges for both businesses and policymakers.

Ohio’s Economic Growth and Industrial Transformation

Ohio has long been a symbol of America’s manufacturing might, historically driven by industries such as automotive, steel, and heavy manufacturing. However, as digital transformation becomes integral to economic competitiveness, the state has recognized the need to diversify its economic base. The recent push has been toward building an infrastructure that fosters digital growth, with notable investments in sectors like information technology, logistics, healthcare technology, and digital manufacturing.

Despite its industrial roots, Ohio’s economy has proven adaptable. Cities like Columbus, Cleveland, and Cincinnati have increasingly attracted tech talent and venture capital, making Ohio competitive with neighboring states like Indiana and Michigan, which have traditionally shared similar industrial profiles. Ohio’s digital transformation has contributed to a more resilient economy, and the state now boasts a Gross State Product (GSP) that grows at a rate competitive with the national average.

Ohio’s recent growth is notable, yet it faces challenges, especially when compared to digitally pioneering states like California, New York, and Texas. In states like California, the presence of Silicon Valley and the concentration of tech giants have accelerated growth. By contrast, Ohio’s development has largely been driven by public-private partnerships and educational initiatives aimed at creating a tech-ready workforce. This approach has set Ohio on a steady path toward a diversified digital economy, but it requires sustained investment to compete with the established tech ecosystems of other states.

Global Comparisons: Ohio and New Zealand

Ohio’s digital transformation efforts can be further contextualized by examining similar shifts in other countries, notably New Zealand. New Zealand, an island nation with a small population, has positioned itself as a digital pioneer, especially in terms of government services and digital infrastructure. The country’s rural landscape necessitated early investment in digital connectivity, with broadband reaching 98% of the population as of recent years. This investment has created an agile tech environment, with New Zealand consistently ranking high in digital competitiveness.

This digital landscape has made casinos and electronic gaming machines, also known as “pokies”, incredibly popular. They differ between Ohio and New Zealand: Between differences in regulatory frameworks, the culture surrounding and market structures there are quite a few differences. While casinos were legalized in Ohio only in 2009, New Zealand’s Gambling was already regulated in the Gambling Act of 2003. Pokies are extremely widespread and not just found in the six licensed casinos the country runs, but also in pubs and clubs.

When comparing market size, Ohio has four primary casinos and seven racinos. Together, they generate billions in annual revenue, which is largely driven by slot machines and table games. In 2022, the revenue exceeded $2.3 billion, which was taxed at 33% gross revenue and thus contributed large funds to education and public health. In comparison, New Zealand’s six casinos and around 14,000 pokies generated around NZ$1 billion.

Ohio’s gambling culture is mostly around its casinos, where the thrill of gaming is often coupled with the entertainment of live dances, shows and dining. In New Zealand, pokies (slots) are deeply woven into the culture, which means they are very popular and help diversify the organizer and owners’ earnings. A lot of players nowadays discover the top-rated online pokies via the widespread use of the internet, whereas before that was never viable.

The Digital Gaming Sector and the Rise of Online Casinos

One interesting metric for comparing digital transformation across regions is the growth of the online gaming and online casino sector. Online casinos represent not only digital growth but also regulatory adaptation. In Ohio, online gaming has seen mixed reception, with lawmakers treading carefully around regulation and taxation. However, the legalization of sports betting in 2021 marked a significant shift, and online casinos are becoming an increasingly viable sector for revenue generation and digital engagement. And this is good – in some states, the industry supports a myriad of people with jobs, both with online and offline casinos.

In comparison, states like New Jersey and Pennsylvania have been at the forefront of online casino legalization and integration, reaping substantial tax revenues and creating a more competitive digital economy. New Jersey, for example, saw over $1 billion in revenue from online gaming in recent years, highlighting a high level of user engagement and state-backed digital infrastructure.

Internationally, New Zealand has adopted a different model. Ohio’s journey is ongoing, but the international examples provide valuable insights into how state governments could approach online casinos for both economic growth and consumer protection.

Challenges and Opportunities for Ohio’s Digital Future

Ohio faces several challenges in advancing its digital transformation. For one, the state still grapples with digital infrastructure gaps, especially in rural areas. While metropolitan hubs have attracted tech investment, regions outside of these cities lag in high-speed internet access and digital literacy. This “digital divide” poses a significant challenge to equal economic growth across the state.

The state also faces a competitive labor market. Attracting and retaining tech talent remains difficult when compared to states with established tech hubs, such as California and New York, or globally renowned innovation clusters like Stockholm. While Ohio’s universities produce a steady stream of engineering and computer science graduates, many migrate out of state in search of higher salaries and larger tech ecosystems.

Ohio’s approach to online gambling is an opportunity, however, to push forward its digital agenda. By embracing a regulatory framework similar to New Jersey’s, Ohio could create a stable source of revenue while expanding its digital footprint. Regulated online casinos would also spur demand for cybersecurity and digital payment solutions, contributing to job growth in these tech-heavy sectors.

Conclusion: Ohio’s Digital Transformation on the Global Stage

Ohio’s digital transformation journey illustrates the dynamic between legacy industries and emerging digital economies. While it may not yet rival tech titans like California or global leaders like New Zealand or Sweden, Ohio’s efforts reflect a determined shift toward digital innovation and economic diversification. By investing in technology, digital literacy, and targeted industries such as online gaming, Ohio can build a resilient economy that competes on both the national and international stages.

The state’s gradual embrace of online casinos and sports betting signifies its willingness to explore new digital industries while navigating regulatory challenges. Learning from the successes and regulatory models of states like New Jersey and international leaders like New Zealand can guide Ohio toward a robust digital future.

In the coming years, Ohio’s commitment to digital transformation, if sustained, could place it among the prominent U.S. states in tech innovation and economic growth. This journey will require a collaborative approach, balancing digital expansion with responsible regulation, ensuring that Ohio’s growth serves as a model of inclusive, forward-thinking economic transformation.