Ohio Lawmaker Introduces iGaming Bill with Sweepstakes Ban
State Representative Brian Stewart (R-12), who chairs the Ohio House Finance Committee, has formally introduced a bill to legalize online casino gaming, or iGaming, in Ohio. The proposed legislation, HB 298, allows only existing state-licensed casinos and racinos to apply for iGaming licenses, effectively excluding out-of-state entities and new market entrants. Additionally, the legislation includes a ban on sweepstakes-style games, reinforcing the state’s regulatory position on unlicensed gaming activities.
Key Highlights of HB 298
Rep. Stewart’s proposed bill sets a 28% tax rate on all iGaming revenue. Eligible entities—namely, Ohio’s current casinos and racinos—would be able to obtain a five-year license for a fee of $50 million, with renewals set at $10 million. The state’s general fund would receive 99% of the tax proceeds, with the remaining 1% earmarked for programs addressing problem gambling.
Critically, each license-holder would be allowed to partner with one online gaming operator. If two or more operators are controlled by the same parent company, only one would be allowed to operate under the license to prevent monopolistic behavior. Oversight would fall under the Ohio Casino Control Commission, and participation in online gambling would be restricted to those aged 21 and older.
A unique aspect of Stewart’s proposal is the inclusion of a firm launch deadline for iGaming in the state—March 31, 2026—assuming the bill is passed and signed into law.
Sweepstakes Gaming Targeted
The legislation also takes a firm stance against sweepstakes gaming platforms. It defines an “online sweepstakes game” as any digital or mobile-accessible contest or promotion that:
– Is accessible online or via mobile apps, terminals, or similar devices.
– Employs a dual-currency payment structure, allowing virtual currency to be exchanged for—or used to win—cash or cash-equivalent prizes.
– Simulates gambling.
– Is not explicitly allowed under state law.
These provisions aim to close loopholes exploited by sweepstakes casino operators, often considered a gray area in gambling regulation.
Second iGaming Bill in May
Rep. Stewart’s bill follows another iGaming proposal introduced just two weeks earlier by Senator Nathan Manning (R-13). Manning’s bill, SB 197, also seeks to legalize online casino gaming, along with iLottery, and proposes one of the highest iGaming tax rates in the U.S.
According to Manning’s plan, Ohio-based casinos would pay a $50 million license fee and face a 36% tax rate. Operators without a physical presence in Ohio would need to pay $100 million for a license and would be taxed at 40%. The proposal also includes a reduction in the sports betting tax rate—from 20% to 10%—for brick-and-mortar casinos.
During the bill’s initial hearing in the Senate Select Committee on Gaming, Manning projected that Ohio could generate between $300 million and $1 billion in annual revenue from legalized iGaming. The next hearing for SB 197 is scheduled for May 22 at 9:30 a.m.
With two competing bills now in play, Ohio lawmakers will be closely evaluating how best to structure the state’s iGaming landscape, from taxation to licensing requirements and consumer protections.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com