Ohio’s latest iGaming push is more likely to be finalized in 2027. Rep. Brian Stewart, a sponsor of House Bill 298, discussed the proposal during a recent iDEA Power Lunch Summit webinar, outlining some of the obstacles that continue to stand in the way of legalization. Those concerns include the effect of online casinos on existing gaming properties and the issue of problem gambling. With the current legislative session coming to a close, 2027 is a more realistic goal.
There is little time left for House Bill 298 to make meaningful progress before the current session ends in December, making next year a more realistic window for another push.
That will be when Gov. Mike DeWine’s term expires, as he’ll leave office in January. Gov. DeWine has opposed online casino legalization, raising concerns about allowing people to gamble on casino games from their phones at any time.
To that end, a new governor who replaces DeWine could potentially remove an obstacle to passing House Bill 298 next year, legalizing online casinos in Ohio.
The bill calls for a 28% tax on internet gambling receipts. According to the Ohio Legislative Service Commission’s fiscal analysis, 99% of net tax revenue would go to the General Revenue Fund, while 1% would be directed to the Problem Gambling Fund.
The fiscal analysis projects that legal iGaming could eventually generate hundreds of millions of dollars in annual state revenue.
Rep. Stewart has pointed to estimates as high as $400 million per year, so the potential revenue could be a selling point to get this legislation to pass.
One of the most notable parts of HB 298 is how closely it ties online gaming to Ohio’s existing casino industry.
Rather than opening the market broadly to online-only operators, the bill would reserve licenses for current casinos and racinos.
The bill would also restrict promotional credits for online casino play. Operators could still offer incentives connected to retail gaming, hotel stays, dining, and entertainment.
The idea is to make sure any expansion into online gambling still provides value for businesses already operating in Ohio.
Even with a structure designed to protect retail casinos, responsible gaming remains another concern surrounding legalization.
Since online casinos are so easily accessible, it has created concerns about problem gambling. That’s why HB 298 would send 1% of iGaming tax revenue to the Problem Gambling Fund, but that provision alone may not be enough.
With that in mind, the next phase of the debate will likely come down to whether supporters can make the case that Ohio can add online casinos while still providing necessary consumer protections.
