Ohio lawmakers introduce bill to legalize iGaming statewide

Ohio could soon legalize online gaming under a new bill introduced by House Finance Committee Chair Brian Stewart (R-Ashville).

House Bill 298 would allow iGaming across the state. Stewart said it is a natural next step, following the previous legalization of casinos and online sports betting in Ohio.

Only companies that currently operate casinos and racinos in Ohio would be eligible for licenses. Out-of-state operators would be excluded.

The cost of entry will be a $50 million initial licensing fee, followed by a $10 million annual renewal cost. The bill also proposes a 28% tax rate on iGaming revenue—mirroring the rate currently applied in Michigan, a neighboring state with an established iGaming market.

Supporters estimate the measure could bring in between $400 million and $800 million in new annual revenue for the state.

During testimony, bill co-sponsor Rep. Marilyn John (R-Richland County) cited data suggesting Ohioans are already spending up to $6 billion on iGaming, with an estimated 85% of that occurring illegally.

Meanwhile, Democratic lawmakers on the committee raised concerns about how the new revenue would be used. Currently, proceeds from casinos are earmarked for education and childcare. 

Stewart said that the bill designates 1% of iGaming revenue for problem gambling services, while the remaining 99% would be directed to the state’s general fund. He added that lawmakers would decide how to allocate those funds during the state’s budget process, held every two years

To further support Ohio’s traditional casinos, the bill includes restrictions on promotional iGaming credits. These credits would be prohibited from offering free online play, but could be used for in-person perks such as hotel stays, meals, or on-site gambling incentives.

A similar bill is being introduced in the Senate and is awaiting committee hearings.