Trending
Momentum is steadily building in Ohio towards the legalization of online casinos. This follows after the introduction of two separate bills earlier this year.
Sen. Nathan Manning put forth Senate Bill 197 (SB 197), while Rep. Marilyn John and Rep. Brian Steward introduced House Bill 298 (HB 298) to the Ohio General Assembly. Both bills have a common goal to increase state revenue through regulated online gambling. This has led to intense conversations and debate around the future of iGaming in the state.
Ohioans who are eager to partake in online gambling currently have limited options. Many have therefore turned to popular alternatives like social and sweepstakes platforms. Players can review a list of sweepstakes casinos to find legal online sites while waiting for the regulation of online casinos to arrive. This has allowed gambling enthusiasts to get a taste of online slots and table games without breaking state law, while also indicating there is a demand for a legalized market.
SB 197 proposes measures to address responsible gaming concerns. Players will have to be 21 years or older, weekly deposits will be limited to $500, and gaming sessions will be capped at five hours. HB 298 takes a slightly different approach. It prohibits promotional credits but does not enforce any time limits. Despite these limitations, projected revenue is estimated by Sen. Manning at around $500 million in annual tax revenue. Rep. Stewards predicts it will be closer to $800 million.
Supporters of the bills look to neighboring Pennsylvania, which has legalized online gambling. Its casino industry has already generated more than $900 million in tax revenue and created hundreds of jobs in the technology and marketing sectors. Advocates believe that a similar boom will benefit Ohio's economy, especially in tech development for live dealer platforms.
Opposition to the bills has centered largely on the risk of problem gambling. During a hearing in May for HB 298, Democratic Rep. Dani Isaacsohn raised concerns about mental health impacts and cited statistics that link suicides to gambling. However, the bills contain protection measures. SB 197 includes a provision dedicating 1% of tax revenue to problem gambling initiatives. This could amount to $5 million each year if Manning's projections hold true.
For operators, Ohio's market could be challenging and expensive. SB 197 proposes a 36% tax rate for existing operators and 40% for those newly entering the market. This will be the highest current tax rate in the US. Licensing fees will also be expensive. Newcomers will be expected to pay $100 million upfront and $10 million for renewals.
HB 298 offers a lower tax rate of 28%, which is similar to Michigan's approach.
These costs pose a barrier for smaller operators; however, established brands like BetMGM are ready for when legalization moves forward. It's MGM Northfield Park casino is already opening in the state, and BetMGM would therefore not face the same costs as new competitors.
Should either of the bills pass, the expectation is to have online casinos operating by spring 2026. The two proposals on the table are the closest Ohio has been to establishing legal iGaming.