Newest Ohio iGaming Bill Also Prohibits Sweepstakes Gaming

• Rep. Brian Stewart (R-12) introduced a bill to legalize Ohio iGaming
• Only state casinos and racinos will be able to hold an iGaming license
• The legislation also includes a ban on sweepstakes gaming

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Rep. Brian Stewart (R-12), chair of the House Finance Committee, has introduced his long-awaited Ohio iGaming bill.

Stewart reported earlier this month he was crafting a bill to legalize online casinos in Ohio. His bill, HB 298, will only allow current Ohio casinos and racinos to offer iGaming, while also prohibiting companies from offering sweepstakes gaming in the state.

It is the second iGaming bill to be introduced in Ohio this month.

No Outsiders Allowed to Hold Licenses

Stewart’s iGaming bill will set the state tax rate at 28% of iGaming revenues. Only Ohio-based casinos and racinos will be eligible to hold an iGaming license, which will cost $50 million and last for five years. The legislation sets the license renewal fee at $10 million.

The bill earmarks 99% of iGaming tax revenues to be deposited into the state’s general fund, with the remaining 1% deposited into the problem gambling fund.

The bill has yet to be remanded to a specific House committee.

License holders will be able to partner with up to one iGaming operator to operate its iGaming platform. If two or more companies eligible to be an iGaming operator are controlled by the same parent company, the legislation noted that only one of those companies may be an iGaming operator.

Under the bill, iGaming will be regulated by the Ohio Casino Control Commission and only those who are 21 and older will be able to participate.

Unlike many other gaming bills, Stewart’s legislation actually sets a deadline for launch. The bill specifically notes that Ohio iGaming must launch by March 31, 2026, if approved and signed into law.

Additionally, the bill will also prohibit sweepstakes gaming in the Buckeye State.

Sweepstakes Gaming Banned Under Legislation

Stewart’s bill specifically prohibits online sweepstakes gaming in Ohio.

His legislation defined an “online sweepstakes game” as a game, contest, or promotion that includes all of the following:

• Available online or through a mobile app, computer terminal, or other similar device
• It utilizes a dual-currency system of payment that allows a player to exchange the currency for a cash prize, cash award, or cash equivalent, or for a chance to win a cash prize, cash award, or cash equivalent
• It simulates a gambling game
• It is not a form of gambling expressly permitted by law

Second Ohio iGaming Bill Introduced This Month

Stewart’s iGaming bill is the second piece of iGaming legislation to be introduced to state lawmakers this month.

Sen. Nathan Manning (R-13) introduced SB 197, a bill to legalize iGaming in the state, two weeks ago. The bill had its first hearing in the Senate Select Committee on Gaming last week.

The legislation underwent its first reading in front of the seven-member committee, but no votes were taken and no comments were accepted from the public.

Manning’s bill calls for the legalization of Ohio iGaming, iLottery, and includes some of the highest proposed iGaming tax rates in the country. His legislation includes different tax rates and licensing fees depending on the institution applying for a license.

According to Manning, brick-and-mortar Ohio casinos awarded an iGaming license will pay a $50 million license fee and pay an iGaming tax rate of 36%. Operators without an Ohio facility will be required to pay a $100 million license fee and be subjected to a 40% tax rate.

Additionally, the sports betting tax rate for brick-and-mortar casinos will be reduced from 20% to 10% if the bill is approved, Manning said.

During the committee hearing, Manning said Ohio could likely see anywhere from $300 million to $1 billion in annual revenue if the bill is approved.

Manning’s bill will have its second hearing in the Senate Select Committee on Gaming on Thursday, May 22, at 9:30 a.m.