Will Ohio Legalize iGaming This Year?

Momentum to legalize Ohio iGaming is building in Columbus. Lawmakers in both legislative chambers have advanced bills that would allow adults 21 and up in the Buckeye State to play real-money Ohio online casino slots and table games on their computers and mobile devices.

Since May 20, there have been two legislative hearings on iGaming, though neither the House Finance Committee nor the Senate Select Committee on Gaming have held a formal vote on the bills before them. Another one happened in House Finance this Tuesday morning, and one is set for the Senate on Wednesday afternoon.

The committees heard from gaming companies and other proponents on the issue this past week, getting feedback on what needs to be in a bill and what doesn’t belong.

Ohio iGaming Push Coincides With Budget Talks

State Rep. Brian Stewart unveiled his proposal for legalizing iGaming Tuesday before the House Finance Committee, which he chairs. After that meeting, he officially filed House Bill 298.

Stewart’s bill, which was anticipated, was filed a week after state Sen. Nathan Manning filed Senate Bill 197. HB 197 would also legalize iGaming. However, Manning, who chairs the Senate Select Committee on Gaming, also included language to legalize iLottery, reduce the tax on Ohio brick-and-mortar sportsbooks to 10% (online Ohio sports betting apps would still pay 20%), formally legalize online pari-mutuel wagering for horse racing, and streamline gaming regulation in the state.

For the latter, Manning’s bill would take the state’s seven racinos, currently overseen by the state lottery, and bring them under the Ohio Casino Control Commission. The bill would also dissolve the Ohio State Racing Commission and give the OCCC the authority to regulate horse and harness racing.

Ohio’s iGaming discussion comes at the same time as the legislature is working on the state’s budget for the upcoming fiscal year that starts on July 1. The House has already passed a version of the spending plan, with the Senate likely to make changes that will require a conference committee to settle differences. 

On top of that, it will need Gov. Mike DeWine’s approval, and the House has already removed the governor’s proposed tax hike on Ohio sports betting operators from 20% to 40%, with most of the proceeds going to pay for the state’s share of sports stadium and arena construction and renovation costs.

If approved, legalized iGaming is expected to deliver hundreds of millions of dollars in tax revenue to Ohio. That’s based on data from Michigan and Pennsylvania, two neighboring states with online casinos.

Ohio iGaming Bills Differ On Several Issues

The two bills share some common traits for an Ohio iGaming framework. Anyone playing real-money casino games online through a licensed operator must be 21 or older and physically in the state. The OCCC would regulate iGaming and must set a go-live date that takes place on or before March 31, 2026. To expedite the rollout, the commission can give six-month provisional licenses to awardees.

Both proposals would also limit license eligibility to the four full-fledged casinos and the seven video lottery terminal racinos across the state; each location would get one skin, meaning they can partner with only one operator. Both bills also propose a $50 million fee for the five-year licenses, though Stewart’s bill calls for a $10 million renewal fee compared to Manning’s $5 million.

However, Manning’s bill, in its current form, would double the license and renewal fee, $100 million and $10 million, if the iGaming operator is a contractor that is not owned or controlled by the brick-and-mortar casino operator. For example, PENN Entertainment operates two casinos and two racinos. If one of those partners with PENN’s Hollywood iGaming platform, the license costs $50 million. It would cost $100 million if PENN partnered with an operator such as DraftKings.

Operators and their supporters are already pushing back on the proposed license fees. Scott Ward, representing the Sports Betting Alliance – a trade group that includes Ohio sports betting apps operators BetMGM, DraftKings, Fanatics Sportsbook and FanDuel – told senators Thursday that a $50 million license fee is five times higher than the current highest license fee among the seven iGaming states.

The tax structure in the bills is also different. Stewart’s bill proposes a 28% levy, compared to a two-tiered plan in Manning’s bill. The senator proposes a 36% tax on operators owned or controlled by the brick-and-mortar casino company and 40% on contracted operators. HB 298 would allow promotional credits to be exempt, while SB 197 calls for the credits to be part of the operator’s taxable revenue.

Both, though, would direct 99% of the tax revenue to the state’s General Fund.

Regarding the credits, Stewart’s bill would require the iGaming apps to only offer bonuses that could be redeemed at the brick-and-mortar casino. That would include food vouchers and entertainment tickets.

Manning told BetOhio that he and Stewart have discussed their bills “a few times” and said those discussions will continue.

Chances Ohio Will Have iGaming By March 31, 2026

What’s happening now in Ohio is the most significant legislative push for online casino gaming since Rhode Island joined Delaware, New Jersey, Pennsylvania, West Virginia, Michigan and Connecticut 14 months ago.

So far, the testimony has been largely positive for legalization. However, just like lawmakers, proponents need to reach a consensus and that might take more time. If the gaming community fails, it will not necessarily stop Ohio legislators from moving forward. Still, having all or nearly all of the operators on board would certainly aid iGaming’s cause.

There is opposition, and opponents will make themselves clearly known as the bill progresses through the chambers. That could be as soon as this week in the legislative committees.

Two Ways Ohio iGaming Could Be Stopped

What might keep iGaming from becoming legal in the state? Aside from lawmakers reaching an agreement, there are a couple of potential obstacles that could prevent online casinos from seeking licenses and launching apps in the Buckeye State.

First, there’s DeWine. Though the Republican governor signed the sports betting bill into law in late 2021, DeWine is not a proponent of gaming expansion. He could veto an iGaming bill that comes to his desk.

Dan Tierney, a DeWine spokesperson, told BetOhio Thursday that the governor’s office has not responded to the measure “yet.”

Republicans have veto-proof majorities in both the House and Senate and GOP lawmakers do have a history of overriding the governor’s vetoes. But support and opposition to gambling crosses the aisles. With proponents needing a three-fifths majority, there could be enough opposition to keep the legislature from an override.

But the biggest question is whether lawmakers can pass iGaming without needing voters to approve a constitutional amendment. That’s how Ohio approved brick-and-mortar casinos 16 years ago. The amendment states, “Casino gaming shall be authorized at four casino facilities.” It sets the operator tax at 33% and dictates where the money goes, and that’s not to the Ohio general fund. 

That means an iGaming law could lead to a legal challenge. The state’s courts have yet to consider whether the expansion of gaming is legal. There was a 2016 Supreme Court decision in a case pertaining to the video lottery terminal racinos. However, the state’s top justices ruled that the plaintiffs in that case did not show they had the right to sue on the matter and did not render a decision on the legality of racinos.