Ohio Bill Considers iGaming But Strikes Down Sweepstakes

Ohio is considering legalizing iGaming but sweepstakes are a no-go.

Ohio Mulls Over Online Casinos

A new bill in Ohio has proposed the legalization of online casinos, potentially turning the Buckeye State into the next iGaming market. However, the bill also outlined certain restrictions to how gaming could be regulated.

House Bill 298 was introduced in the state’s General Assembly yesterday, proposing legalizing and regulating online casino gaming. Under the measure, the Ohio Casino Control Commission (CAC) would be provided with the responsibility of overseeing the sector.

Should HB 298 pass, companies that procure the necessary license would be required to offer online casino-stile games, such as table games and digital slots. The bill specifies that these products would only be available to adult players who are physically located in the state.

In addition to that, the bill will prevent people from fueling their accounts with credit cards. HB 298 also bans promotional gambling credits, with the exception of promotional credits for in-person gaming.

If the bill passes, iGaming should go live by March 31, 2026.

HB 298 Would Only Allow Existing Operators to Run iGaming

Although the proposed framework is mostly in line with other gaming states, there is one major difference – under HB 298, only existing land-based casinos or racetracks would be allowed to procure a license. Additionally, the bill would only allow one skin per license.

Licenses would cost $50 million and will last five years. The renewal fee would be $10 million. In the meantime, supplier licenses would cost $100,000 and will have a $50,000 application fee. The latter will be valid for only three years.

Under the proposed framework, iGaming operators will also have to pay 28% of their proceeds as tax. Most of this money would go the state’s General Revenue Fund, while a small portion will fuel the Problem Gambling Fund.

Sweepstakes Will Be Prohibited

In the meantime, the bill makes it clear that sweepstakes will not be allowed, unless a separate measure authorizes them. To top it all off, the bill would expand the state definition of illegal gambling to include sweepstakes, which are defined as operators using a dual-currency system to simulate unlicensed gambling games.

Sweepstakes are one of the hot topics of the US gaming industry due to their rapid growth. The regulated gaming sector has responded harshly to the expansion of gray market gaming alternatives, such as sweepstakes.

To make matters more challenging, operators also face growing competition from the CFTC-regulated prediction markets, which do not have to navigate the complex US gambling landscape.