Online Casinos coming to Ohio? Latest iGaming Legalization News

Key Points: 

• Ohio legislators are considering online casino legislation via two new bills: HB 298 and SB 197, potentially joining the seven other U.S. states with legal iGaming.

• HB 298 proposes stricter controls with a 28% tax rate, bans on credit cards and online lottery and $10M renewal fee

• SB 197 offers broader expansion, including online lottery, a higher 36-40% tax rate, funds earmarked for addiction services and a $5M renewal fee.

• Legislation faces major hurdles in 2025 due to competing proposals, industry opposition and Governor Mike DeWine’s skepticism.

————

Online casino gambling is still limited in the U.S., with just seven states offering legal iGaming: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island. This list could add its eighth state relatively soon: Ohio. With two new bills introduced to the state legislature, the Buckeye State has joined a growing number of jurisdictions considering expansion of online gambling options beyond mobile sports betting with digital casinos too.

The seven states that have legalized iGaming have seen significant tax revenue boosts, as online casinos generally see much higher figures than mobile sports betting. For instance, Michigan reported iGaming gross receipts of $260.5 million in March 2025, compared to $33 million from online sports betting that same month. That resulted in gambling operators submitting $51.4 million in state taxes and payments, with iGaming taxes and fees contributing $50.5 million and online sports betting taxes and fees accounting for just $874,052.

These returns are part of why Ohio is considering similar legislation, but the road to legalization is not without obstacles. Will it actually happen in Ohio? And what does it mean for public health, tax revenues and vulnerable populations? Here’s what you need to know.

Current status of Online Casino legislation in Ohio

Ohio is currently weighing two iGaming-related bills: House Bill 298 (HB 298) and Senate Bill 197 (SB 197). Each proposes a framework for legalizing online casino games like slots, blackjack and poker, and in SB 197’s case, online lottery ("iLottery") as well. Both bills aim to bring Ohio into the iGaming fold, but they differ in important ways, and that divergence could stall or derail legalization in the short term.

HB 298

HB 298, sponsored by House Finance Committee Chair Brian Stewart, is the more conservative of the two proposals. It includes:

• 28% tax rate on operator revenue
  
  

• $50 million licensing fee, with a $10 million renewal fee
  
  

• Prohibition on credit card use, sweepstakes casinos and online lotteries
  
  

• Firm stance against parimutuel wagering

This bill has garnered support from some legislators but also faces pushback from within the industry and political ranks.

SB 197

SB 197, introduced by Sen. Nathan Manning, is more expansive. It proposes:

• 36-40% tax rate, depending on the final version
  
  

• $50 million licensing fee, with a $5 million renewal fee
  
  

• Legalization of both iGaming and iLottery
  
  

• Allocation of 99% of revenue to the state’s general revenue fund, with 1% set aside for addiction services

This bill has sparked more interest among proponents of gambling reform, and sharper criticism from opponents. JACK Entertainment, Churchill Downs and PENN Entertainment argue the bill could threaten their in-state casino operations. Concerns have also been raised regarding online casino expansion without a constitutional amendment.

UPDATE 6/2/25:

Per Cleveland.com, Governor Mike DeWine said at a business event last Thursday: "Just so everybody understands, this would be 24-7. Anybody who’s got an iPhone could basically have a casino there. And the potential for addiction is just massive."

However, the governor did not explicitly say that he would veto an online casino bill if passed.

Is either of these iGaming bills likely to pass? 

At this stage, both bills face significant hurdles. The competing tax structures, disagreements over iLottery inclusion and lack of unified support suggest Ohio’s iGaming legalization efforts may not advance far in 2025. The effort may just serve as a trial run to gauge reactions from lobbyists and voters rather than pass immediately.

Governor Mike DeWine’s position is also a complicating factor. Known for his skepticism of gambling expansions, DeWine previously doubled the online sports betting tax rate and may be against approving further changes.

Connect with Birches Health by clicking here, calling 833-483-3838 or emailing help@bircheshealth.com

When could Online Casinos launch in Ohio?

If either bill were to pass by the end of 2025, the earliest likely launch date for regulated online casinos would be mid-to-late 2026. This timeline assumes smooth rulemaking, regulatory development and licensing. If constitutional challenges delay the process, the wait could be even longer.

Online lottery too?

SB 197 includes legalizing online lottery sales, a move that would allow Ohioans to purchase tickets and instant-win games digitally. Supporters say it could bring in hundreds of millions in additional tax revenue, as seen in states like Michigan. However, House Speaker Matt Huffman expressed concerns about overexpansion and the addictive nature of these platforms, saying, “With iGaming, you can sit on your back patio and lose all your money.”

Some legislators want gambling revenues to be directed toward education, childcare and addiction services, though Huffman prefers routing them to the general fund.

Considerations, Pros/Cons for legalizing Online Casino

Pros:

• Impactful state revenue potential, possibly for schools or healthcare funds
  
  

• Bolstered consumer protections through regulated platforms, compared to current unregulated options currently accessible in the state.
  
  

• Job creation and economic stimulation in the tech and gambling sectors

Cons:

• Increased access could lead to higher rates of problem gambling, particularly among young adults.
  
  

• Difficult to monitor and restrict access for minors

  
  

• Possible rise in financial harm due to the fast-paced nature of online casinos

Online casinos offer significantly higher profit margins than sports betting, thanks to the inherent house edge in games like slots and blackjack, along with the increased volume of bets. However, this also can mean greater risks for constituents in Ohio. 

Gambling Addiction treatment available in Ohio

Birches Health provides expert virtual counseling for problem gambling and sports betting addiction across the entire state of Ohio, making it easier than ever for residents from Columbus to Cleveland, Cincinnati to Akron, and everywhere in between to access the care they need.

Ohio’s mix of urban centers and rural communities can make it difficult to reach traditional treatment options. That’s why Birches Health uses modern telehealth technology to provide flexible, discreet and effective care.

Whether dealing with unhealthy behaviors around sports betting, lottery, casino gambling or another form of addiction, Birches’ licensed clinicians create personalized treatment plans tailored to your unique needs. Care costs can be covered by insurance across Ohio, as Birches partners with major insurance companies to help keep treatment affordable and accessible.

To get started with Birches Health, you can:

• Click to book an appointment 

• Call 833-483-3838

• Email help@bircheshealth.com