Ohio’s gaming landscape has undergone significant transformation, evolving from a state with limited legal gambling options to one embracing a broader spectrum of gaming activities. Although initially resistant to most forms of gambling, Ohio took a pivotal step in 2009 with the approval of a constitutional amendment permitting the establishment of four land-based casinos in major cities. This marked a turning point, followed by the legalization of video lottery terminals (VLT) at racetracks and, more recently, the introduction of legal sports betting in 2023. These changes reflect a broader trend toward expanding gaming as a source of revenue and entertainment. Most recently, the introduction of Senate Bill 197 (SB 197) and House Bill 298 (HB 298) signals another phase in this evolution. Both SB 197 and HB 298 propose updates and clarifications to Ohio’s gaming laws, aiming to streamline regulatory oversight, implementing industry-leading consumer and responsible gambling protections, and the integration of new gaming technologies and platforms. As the state continues to modernize its gaming laws, both bills aim to generate economic growth with regulatory responsibility in an increasingly digital and dynamic gaming environment.
SB 197 Overview – iGaming & iLottery
At a high level, SB 197 aims to authorize internet gambling (iGaming), internet lottery gambling (iLottery), and online pari-mutuel wagering on horse racing, while consolidating most of the gaming regulatory oversite to the Ohio Casino Control Commission (OCCC).
In this case, the OCCC would oversee online gambling, similar to how it currently oversees sports gaming, assume the duties of the State Racing Commission (Racing Commission to be abolished by March 21, 2026), assume the regulation of all charitable gaming, such as bingo and sweepstake terminal devices from the Attorney General’s Office as of January 1, 2027, and oversee the licensing and regulation of VLT gaming from the Ohio Lottery Commission (Lottery hereon) as of March 31, 2026, while leaving the operation of the VLTs to Lottery.
iGaming
Under the proposed bill, iGaming would launch no later than March 31, 2026, to licensed gambling operators. iGaming can include digital/online versions of games you’d typically find in a casino like slot machines, Blackjack, Roulette, Baccarat, Craps, and video poker.
The bill also includes the following:
- Specifies that only an Ohio casino operator or horse racetrack owner is to be licensed as an iGaming operator, with each operator being limited to one iGaming platform;
- $50 million for an initial license and $5 million for a license renewal for operators with physical gambling facilities in the state;
- $100 million initial fee and a $10 million renewal fee for operators without a physical gambling facility in the state;
- Allows an operator to contract with an internet gambling management company to operate the iGaming platform; and
- Requires a supplier of iGaming equipment to be licensed and to pay an application fee of $50,000 and a license fee of $100,000 for an initial or renewed license.
With regards to taxes under iGaming:
- 36% is levied on an operator’s iGaming gross receipts for those with physical gambling facilities in the state;
- 40% is levied on the gross receipts if the operator contracts with a management company and the same person does not own or control at least 50% of both the operator and the management company; and
- 99% of the tax proceeds must be deposited in the State’s general revenue fund and 1% in the Ohio Problem Gambling Fund.
iLottery
The bill will allow Lottery to offer internet lottery-based gaming with the exception of electronic versions of Pick 3, Pick 4, Pick 5, Rolling Cash Five, or Classic Lotto. It also prohibits iLottery from including statewide joint lottery games such as Powerball or Mega Millions for the first year after the bill takes effect.
Additionally, iLottery can’t include facsimiles of bingo, betting on horse racing, internet gambling, casino gaming, VLTs, fantasy contests, sports gaming, any other game of chance, sweepstakes terminal devices, or skill-based amusement machines.
Bars and Restaurants
There is good news for bar/restaurant owners that operate Type C sports wagering. This bill will eliminate the provision of existing law that restricts Type C gaming to only spread, over-under, moneyline, and parlays based on not more than four component wagers. This will help the bars and restaurants increase their revenue and will likely entice more operators to enter into this market.
Online Betting on Horse Racing
The bill will allow Ohio horse track operators to accept pari-mutuel wagers on horse racing over the internet, in addition to in person payments at a track or satellite facility, as soon as updated administrative rules are implemented.
Other Changes
The bill also makes changes to charitable gaming, operation of bingo, sweepstakes and skill games, decreases the sports wagering tax from 20% to 10% for brick-and-mortar operators, and other changes to codify Ohio’s gambling regulations into statute.
HB 298 Overview–iGaming
HB 298 was also just introduced and is much more limited than SB 197. Like SB 197, this bill requires iGaming to launch no later than March 31, 2026. This bill only authorizes iGaming type games and is to be regulated by the OCCC. Highlights of the bill include:
- Limits iGaming operations to the existing brick and mortar casinos and racinos;
- Limits one iGaming license per operator. If two or more companies who are eligible for a license are controlled by the same person, only one of those eligible persons may hold an iGaming operator license at any one time;
- License fee: $50 million, renewal $10 million, license valid for 5 years;
- Ability to contract with an iGaming management company;
- Supplier licenses cost $100,000 and include an additional $50k application fee; and
- Taxes.
- 28% of the operator's internet gambling receipts.
- After all state expenses are deducted, 99% of the remaining funds go to the General Revenue Fund and 1% to the Problem Gambling Fund.
The bill encourages support for the brick-and-mortar casinos and racinos by restricting how promotion credits can be spent. Under the bill, promo credits are limited to free play use at the casino or racino facility or towards hotels, food, beverages, and entertainment.
The introduction of SB 197 and HB 298 is a first step of many to enter into the Ohio legislative process before either becomes law. But with the Governor’s biennial budget in full swing, the possible changes to Ohio’s gaming laws could be implemented under a more compressed timeline, which could mean as early as this July.
For current and prospective gaming operators, as well as tech startups looking to innovate within the digital gambling space, SB 197 and HB 298 present a strategic opening to align with Ohio’s modernized regulatory environment. By engaging early and staying informed on these proposed legislative changes, stakeholders can position themselves at the forefront of a rapidly expanding market.
