Ohio Legislature Proposes Legalization of Online Gambling Exclusively, Shuns Sweepstakes Casinos Permanently
Let's Get Real: Ohio's New Push to Legalize Online Casinos... But Not Those Sweepstakes Joints!
Still riding the wave of preventing backdoor gambling dens, Rep. Brian Stewart has blown the whistle on another opportunistic move - the introduction of House Bill 298. This draft legislation aims to legalize online casino gambling in the Buckeye State while shutting down those dang sweepstakes casinos, once and for all.
May 20th: The grand unveiling of House Bill 298, a game-changer for Ohio's gambling landscape, if passed.
This bill envisions a tightly regulated market overseen by the Ohio Casino Control Commission (OCCC). However, one significant aspect that sets things apart is the outright ban on refined gambling platforms like sweepstakes casinos, also known as "social casinos". These platforms have been prevalent due to their simulated casino-style gameplay using sweepstakes-based prize models, exemplified by services like Chumba, High 5, and WOW Vegas.
House Bill 298 Draws the Line on Dual-Currency Casinos
While the hot topic remains the legalization of iGaming, House Bill 298 takes an assertive stance against sweepstakes-style operators. The bill clearly highlights these unregulated platforms by name, restricting the use of dual-currency systems like Gold Coins and Sweeps Coins unless expressly authorized by the state. Operating such a platform would be considered a straight-up criminal offense.
A Selective iGaming Market
Only companies that already operate retail casinos or racinos within the state will be eligible to participate in the regulated online casino market. Brands like Caesars, MGM, PENN, and Hard Rock might be prime candidates, but they'd be limited to a single online platform, even if they manage multiple properties in the state.
However, new operators or purely digital brands won't be allowed to join forces in the market under House Bill 298 - a stark difference from the more open-door approach advocated by the Senate's competing bill, SB 197.
The Cost of Entry: Don't Forget Your Cloverleaf!
New candidates in Ohio's iGaming market must prepare their wallets for steep licensing fees:
- $50 million for an initial five-year license
- $10 million annually to renew
- $100,000 for equipment certification
- $50,000 application fee
- Taxes on gross gaming revenue: 28%, one of the highest in the U.S.
All online gaming servers and operational equipment must be physically based in Ohio, and the OCCC would test all equipment in its lab before launch.
Can iGaming Roll the Dice By 2026?
If House Bill 298 prevails, Ohio could witness the launch of its iGaming market by early 2026. However, the ban on sweepstakes casinos may well take effect sooner, depending on how the legislation is structured and enforced.
Senate's Competing Vision
In a separate corner, the Ohio Senate has introduced SB 197, offering a more liberal casino market. Although still under review, this bill comes with even higher tax rates (36-40%, depending on the operator) and allows online lottery games and parimutuel horse betting. Perhaps surprisingly, SB 197 does not explicitly ban sweepstakes casinos, although the popularity of real-money online casinos might diminish their appeal anyway.
Nevertheless, House Bill 298 has momentum, given its association with the chair of the Finance Committee and the backing of land-based casinos. And with a hard line against sweepstakes casinos, this bill could significantly reshape the entire online gambling ecosystem in Ohio.
The Ohio Casino Control Commission (OCCC) would oversee a tightly regulated market if House Bill 298 passes, focusing on legalizing online casino gambling while prohibiting sweepstakes casinos, also known as "social casinos."
Platforms like Chumba, High 5, and WOW Vegas, which use sweepstakes-based prize models to simulate casino-style gameplay, would be banned under House Bill 298, as the bill restricts the use of dual-currency systems.
