Ohio gaming is all set to launch at the end of March in 2026 – but it brings with it some serious limitations. For one, only operators with existing racinos and brick-and-mortar casinos would be eligible for a license online. Also, each operator would only be permitted to use one gambling platform even if they have several ones in the state. In addition, the taxes for the online casinos would be at 28%, and licensees would have to pay $50 million for five years and $10 million for every additional year.

A newly introduced online casino bill in the Ohio House could reshape the future of digital gambling in the state - while simultaneously drawing a hard line on who gets to participate.

Filed by Representative Brian Stewart on May 20, House Bill 298 proposes to legalize online casino gambling in Ohio, with a launch date on the 31st of March, 2026. However, the legislation would tightly control entry into the market and impose several restrictions aimed at favoring the state's existing brick-and-mortar gambling operations.

Online gambling for existing operators only

A standout feature of Stewart's proposal is that it restricts online casino licenses exclusively to operators that currently run physical casinos or racinos within Ohio. This means national operators without a retail footprint in the state would be locked out entirely.

Even among those eligible, the bill limits each operator to only a single online gambling platform, regardless of how many properties they manage in Ohio. For example, industry giants like PENN Entertainment and Caesars Entertainment, which operate multiple venues and brands, would need to choose just one platform to deploy.

This limitation appears to be designed to protect the market share and brand equity of Ohio's land-based casinos by preventing the entry of purely digital competitors.

Promotion restrictions and hospitality incentives

Another measure intended to bolster the physical casino industry is a ban on online-specific promotional gaming credits. While such offers have been a common marketing tactic in other states, House Bill 298 would allow promotional incentives only if they relate to hospitality experiences or on-site casino play, not for direct online gambling.

This shift could give land-based operators a unique advantage by encouraging customer visits to physical locations through their online platforms.

Financial framework: licensing and taxes

License fees and taxation are also major elements of the bill. An initial five-year license would cost operators $50 million, with an annual renewal fee set at $10 million. Online casinos would be taxed at 28%, mirroring Michigan's rate and notably higher than Ohio's current 20% tax on sports betting.

According to Stewart, this taxation structure could bring in between $400 million and $800 million per year. Of that, 99% would go directly to Ohio's general fund, with the remaining 1% earmarked for problem gambling services. The Ohio Casino Control Commission, which currently regulates sports betting, would also oversee online casino operations under the new bill.

Clear ban on sweepstakes gambling

The bill makes a definitive move against online sweepstakes gambling, which has operated in a legal gray area in many states. House Bill 298 specifically targets platforms that use dual-currency systems to simulate gambling. Under the proposal, such sweepstakes would be explicitly illegal unless expressly authorized, and operating one would constitute a criminal offense.

This clarity sets Stewart's proposal apart from other legislative efforts that often leave room for interpretation.

Competing senate bill offers broader access

Stewart's House proposal follows the recent introduction of Senate Bill 197 by Senator Nathan Manning, which envisions a more inclusive online gambling market. That bill would allow out-of-state operators to participate, though at a cost: untethered operators using third-party platforms would face a 40% tax rate and a $100 million license fee.

In contrast, brick-and-mortar casino operators who use platforms they own at least half of would be taxed at 36%, with a five-year license fee of $50 million and a $5 million renewal cost. Senate Bill 197 has already been referred to committee and is scheduled for discussion this week.

With two distinct visions for online casino gambling now in play, Ohio lawmakers face critical decisions about the state's digital gambling future. Stewart's House bill offers a conservative, casino-protectionist approach, while Manning's Senate bill leans more open but imposes steep costs on newcomers.