Ohio is taking its next big step in gambling expansion. House Bill 298, introduced by House Finance Chair Brian Stewart (R-Ashville), lays out a plan to legalize and regulate online casino gaming—or iGaming—across the state.
Under the proposed legislation, the Ohio Casino Control Commission (CAC) would oversee iGaming much like it does with sports betting. Only existing Ohio-based casino and racetrack operators would be eligible for licenses, effectively locking out out-of-state brands. Each approved entity would be allowed to run a single online platform, and only one license per parent company would be issued.
Game Offerings and User Restrictions
Licensed operators could offer a range of virtual casino-style games, including slots, poker, and other chance-based games involving cards, dice, or spinning reels. Participation would be limited to individuals aged 21 and older who are physically located within Ohio’s borders.
To curb potential abuse, credit cards would be banned for funding wagers, and operators would not be allowed to issue online-only promotional gaming credits. On the other hand, perks like hotel discounts, meals, or in-person gambling bonuses remain fair game.
Licensing, Fees, and Server Requirements
The cost of entry is steep: $50 million for an initial operator license, followed by a $10 million renewal every five years. Management companies contracted to run the platforms would also need to be licensed. Suppliers of gambling equipment face a $100,000 license fee and a $50,000 application fee.
All servers must be located in Ohio, and all gaming systems require independent lab testing and CAC approval. Operators, vendors, and staff involved in online gambling would also need occupational licenses, with temporary licenses available during the first six months.
Tax Structure and Revenue Use
The bill sets a 28% tax rate on online gambling receipts, mirroring Michigan’s iGaming model. Revenue distribution would send 99% to the state’s General Revenue Fund and 1% to services targeting problem gambling. Promotional credits used for in-person play won’t count toward taxable receipts. iGaming income exceeding taxed amounts would be exempt from the Commercial Activity Tax.
Supporters estimate the measure could generate between $400 million and $800 million annually. Co-sponsor Rep. Marilyn John (R-Richland County) noted that Ohioans already spend up to $6 billion on iGaming, with most of it going to illegal markets.
Cracking Down on Sweepstakes Casinos
A key enforcement provision targets unregulated online sweepstakes games, particularly those using dual-currency systems that mimic real gambling. The bill would criminalize such operations unless expressly authorized, tightening the net on grey-market platforms.
Legal Questions and Legislative Path
Constitutional challenges remain a hurdle. Ohio’s constitution only allows casino gaming at four designated sites. But proponents argue that the legislature has the power to regulate new forms of gambling, especially digital ones, under separate statutes. Though there’s precedent suggesting legislative leeway, the state Supreme Court hasn’t issued a definitive ruling.
For now, HB 298 waits to be added to the legislative calendar. A parallel bill is also under review in the Senate.
The CAC would be required to set a go-live date for online casinos no later than March 31, 2026. Until then, lawmakers, regulators, and industry insiders are watching closely as Ohio inches closer to a regulated iGaming market.
