Efforts to legalize online casino gaming in Ohio are facing challenges, with chances of progress before the end of the year looking slim. Rep. Brian Stewart, the sponsor of House Bill 298, shared insights during a recent webinar hosted by the iDevelopment and Economic Association (iDEA), indicating that convincing a skeptical legislature to embrace online casinos as a source of new revenue without harming existing casinos and racinos is a significant hurdle. "We just have a lot of legislators that don’t like gambling," Stewart said, noting that while younger legislators tend to be more supportive, older members are harder to persuade.
Ohio already has a considerable gambling landscape consisting of four casinos, seven racinos, and a mix of retail and online sports betting options. However, the primary barrier to iGaming is the opposition from Governor Mike DeWine. The term-limited governor has consistently rejected the idea of online casino expansion, linking it to his regret over Ohio's sports betting law and expressing concerns about the potential for increased problem gambling.
Resistance to iGaming dates back further than the sports betting launch, as some lawmakers remain against the expansion of gambling since Ohio voters approved casino gambling through a 2009 constitutional amendment. Stewart indicated that newer legislators, who weren't in office when sports betting passed in 2021, may also oppose further gambling expansions.
An additional point of contention is the state's financial situation. Ohio's Republican leadership has long sought to eliminate the state income tax, raising the question of how the state can replace that revenue. Stewart noted that although iGaming could potentially generate an annual revenue of $400 million, that figure has yet to catalyze legislative action.
Introduced in May 2025, HB 298 is currently stalled in the House Finance Committee after two hearings, with the session scheduled to end in December. If passed, the bill would:
– Allow internet gambling regulated by the Ohio Casino Control Commission
– Impose a 28% tax on internet gambling receipts
– Allocate 99% of tax revenue to the state's General Revenue Fund and 1% to the Problem Gambling Fund.
The bill limits licenses for online casinos to existing brick-and-mortar casinos and racinos, a move Stewart explained is meant to ensure that iGaming does not cannibalize the current gambling businesses that provide jobs and tax revenue in Ohio.
Stewart also highlighted that the proposed legislation would differ from the sports betting market by restricting promotional offers. HB 298 prevents licensed online gambling operators from providing online promotional credits but allows promotions associated with in-person gaming, such as hotel stays and dining.
This approach is designed to ensure that local casinos benefit from iGaming instead of just supporting national brands in customer acquisition. While this strategy does not completely resolve cannibalization concerns, it clarifies the role of physical casinos in the online gambling framework and offers legislators a way to address how online expansion benefits existing facilities.
Stewart emphasized the necessity for robust consumer protection measures and credible solutions for problem gambling to broaden support for iGaming among lawmakers. He noted that Governor DeWine's focus on the unique risks presented by online gambling compared to land-based casinos presents an obstacle that must be addressed.
Stewart said, "The most compelling opposition was the idea of if I want to gamble at a casino, at least I need to get up, get dressed, take cash out. If I want to gamble all day on my phone, I can do it all day, and nobody knows."
With DeWine set to leave office in January 2027, there may be renewed efforts to revisit the legalization of iGaming. Democratic nominee Amy Acton has expressed openness to regulating iGaming as a revenue avenue but insists on protections for youth and limitations on aggressive marketing. Meanwhile, Republican nominee Vivek Ramaswamy has yet to specify his stance on iGaming, focusing instead on his ambition to eradicate income taxes.
