Ohio’s HB298 Aims to Legalize Online Casinos and Ban Sweepstakes

A New Play for Ohio’s Gaming Scene

The bill, filed on May 20, 2025, sets a launch date for iGaming by March 31, 2026, under the Ohio Casino Control Commission’s watch.

It’s a sweet deal for the state’s 11 casinos and racinos, but a tough break for sweepstakes operators raking in $3.7 billion yearly. “It would expand a consumer base of players who prefer an online setting,” said Rep. John, touting job creation and revenue.

HB298 opens the door to online slots, table games, and poker, but only for Ohio’s existing brick-and-mortar casinos and racinos. Each operator gets one online platform, with a hefty $50 million license fee for five years and $10 million renewals.

Servers must stay in Ohio, equipment needs independent lab testing, and players must be 21 and physically in-state. The bill bans credit card deposits, aiming to curb debt-fueled gambling.

“We believe that given the significant financial upside to the state, it’s reasonable to take the next logical step,” said Stewart, eyeing $400 million to $800 million in annual tax revenue at a 28% rate, with 99% to the state’s general fund and 1% for problem gambling.

Licensing Locks Out Outsiders

The bill’s licensing setup is strict, favoring local players. Only Ohio-based casinos and racinos qualify for operator licenses, shutting out offshore or out-of-state firms.

Management companies and suppliers need licenses too, with supplier fees at $100,000 and occupational licenses for key staff at $50.

Background checks, including FBI fingerprinting, ensure no “disqualifying offenses” for licensees. Temporary licenses are allowed for six months post-launch, but servers and gear must be Ohio-based and OCCC-approved.

“The bill comes with a number of provisions to try and protect the state’s current brick and mortar casinos,” Stewart said, signaling a shield for locals against giants like FanDuel.

Sweepstakes Face a Hard Ban

HB298 doesn’t mess around with online sweepstakes, banning them outright and redefining them as illegal gambling. It targets platforms using dual-currency systems, like Gold Coins and Sweeps Coins, where the latter can be cashed out, if they mimic casino games without legal approval.

Operating these is a criminal offense, a move backed by Ohio’s casino operators. “These [sweeps] platforms, many of which are onshore with headquarters in the United States and whose apps are readily available on major online stores for download, take advantage of legal loopholes,” said Rick Limardo of MGM Northfield Park, slamming their lack of taxes, age checks, or responsible gaming tools.

The Social and Promotional Games Association countered, claiming its members prioritize those measures.

“This illicit sweepstakes industry is not subject to any state gross gaming tax, does not offer any meaningful responsible gambling tools, and does not employ sophisticated KYC, identity- or age-verification processes,” Limardo said, pushing for a regulated market.

Challenges and Context

HB298 faces hurdles. Gov. DeWine’s anti-gambling stance, with his term until 2027, could stall the bill. Ohio’s constitution, limiting gaming to lotteries, bingo, and designated casinos, might spark legal challenges, though the Supreme Court hasn’t ruled.

The sweepstakes ban aligns with moves in states like New York and Florida, but the Social and Promotional Games Association calls it an “overreach.”

Casino operators support HB298 for protecting their turf, but labor unions worry about job losses if iGaming cuts land-based revenue.