Article By Stephen Crystal – Founder & CEO, SCCG – SCHEDULE A MEETING!
Inside Ohio’s Online Casino Bill
Ohio is on the cusp of a pivotal moment for its gaming industry. With Senate Bill 197 now in motion, lawmakers are pushing to join the short but growing list of U.S. states that have legalized online casino gaming. It’s a move that signals both maturity in Ohio’s regulatory outlook and an appetite for expanded revenue streams. But unlike previous half-steps, this proposal lands with real momentum—and a tax rate to match.
A New Chapter for Ohio Gaming
Spearheaded by Senator Nathan Manning, SB 197 lays out a comprehensive framework to bring legal online slots, interactive table games, poker, iLottery, and parimutuel wagering under the regulatory umbrella of the Ohio Casino Control Commission. If passed, it would mark a major expansion beyond Ohio’s current retail casino and sports betting offerings, positioning the Buckeye State as the eighth jurisdiction in the U.S. to permit iGaming.
What makes this bill different from previous efforts is not just its scope—but the early signs of bipartisan support. Republican and Democratic lawmakers alike are acknowledging that public sentiment around online gambling has shifted. The question is no longer if, but how the state should legalize and regulate it.
A High-Stakes Tax Structure
At the heart of SB 197 is a bold fiscal strategy. The proposed tax rate is one of the highest among open-market iGaming states:
- 36% for operators running their own platforms
- 40% for operators using third-party platforms like DraftKings or FanDuel
For comparison, Pennsylvania’s iGaming slots tax sits at 54%, while Michigan’s top tier caps out at 28%. New Jersey and Connecticut hover around 15-18%, although New Jersey is considering an increase. If passed, Ohio’s structure would place it at the top end of the national tax spectrum—potentially discouraging partnerships, but also maximizing state revenue.
License Fees and Launch Timeline
Under the bill, each licensed casino or racino in Ohio would be eligible to offer one iGaming platform. Applicants would need to pay a $50 million license fee, plus $5 million every five years for renewal. The Ohio Casino Control Commission is tasked with setting a formal launch date by March 31, 2026, with the option to issue provisional licenses during the initial six months.
Revenue generated from iGaming would be allocated with 99% funneled into Ohio’s General Revenue Fund, and 1% directed toward responsible gambling programs—an increasingly standard (but still modest) carveout in state-level gaming policy.
A Countermove to the Gray Market
One of the most striking data points driving this legislation is Ohio’s $3.7 billion estimate for revenue currently flowing to unregulated gaming platforms, including sweepstakes casinos. Without a legal alternative, residents have turned to offshore and gray-market sites in droves—leaving tax dollars and consumer protections on the table.
Legal iGaming offers a way to repatriate that spending. In Michigan and Pennsylvania, state-sanctioned platforms have already proven their ability to outperform unregulated competition. The expectation is that Ohio would follow a similar trend—particularly given its population advantage over New Jersey, a leading iGaming market.
Competing Visions
Adding a layer of complexity, House Representative Brian Stewart is also crafting a separate iGaming bill. While the details are still emerging, this signals broad legislative interest and sets the stage for a robust policy debate. Key players, including House Speaker Matt Huffman and the chair of the House Finance Committee, are already framing iGaming as a legitimate and necessary revenue tool.
What Comes Next?
SB 197 now heads to the Senate Select Committee on Gaming for further review. If successful, Ohio’s model could serve as a template for other large-population states still sitting on the sidelines.
There are, of course, challenges ahead—industry pushback on tax rates, concerns from retail operators like Jack Entertainment, and public discourse around responsible gaming. But the legislative will seems stronger than ever, and the revenue potential may be too compelling to ignore.
Final Thought
Ohio’s online casino bill is more than a local issue—it’s a reflection of the broader U.S. trend toward regulated digital gambling. The real question is whether Ohio will lead with a model that balances consumer access, state revenue, and long-term industry sustainability—or simply become the latest state to test how far the iGaming market can be pushed before it pushes back.
