Ohio Moves Toward Legal iGaming—But Only for Existing Casinos

House Finance Committee Chair Brian Stewart (R), House Bill 298 (HB 298) represents the next step in the state’s gradual expansion of gambling access—from physical casinos to mobile sports betting, and now to broader iGaming.

Digital Gaming Expansion with Firm Boundaries

HB 298 outlines a clear path for legalizing iGaming—casino-style games played online—while ensuring protections for Ohio’s established gambling venues. Only the companies currently operating one of the state’s four casinos or seven racinos would qualify for a license. Out-of-state firms would be excluded from entering the Ohio market under this proposal.

License costs are set at $50 million initially, with an annual renewal fee of $10 million. The state plans to tax this form of gaming at 28%, mirroring Michigan’s current iGaming tax rate. If ed, lawmakers estimate the measure could generate between $400 million and $800 million in annual revenue.

Co-sponsor Marilyn John (R) testified that Ohioans are already participating in iGaming—largely through illegal platforms—spending an estimated $6 billion annually, 85% of which is believed to occur through unlicensed operations.

Revenue Allocation and Player Protections

While some Democratic lawmakers inquired whether the new revenue could be dedicated to education or childcare, similar to how brick-and-mortar casino taxes are distributed, Stewart clarified that the majority of funds would flow into the state’s general fund. “The bill will give 1% to problem gambling resources,” Stewart said, noting that budget allocation would occur biennially during state budget negotiations.

To further physical casinos, the bill restricts iGaming promotional credits. These cannot be used for online free play but can be redeemed for hotel stays, meals, or free play at a licensed casino.

Ongoing Fight Against Illegal Gambling in Ohio

The push for legal iGaming arrives as Ohio continues to battle a widespread problem: illegal casinos. In Northwest Ohio alone, recent raids have targeted unlicensed gambling establishments camouflaged as legitimate businesses.

Since 2015, the Ohio Casino Control Commission has disabled or confiscated more than 7,500 illegal slot machines—suring the total number of machines legally operating in Ohio’s licensed casinos.

Executive Director of the Ohio Casino Control Commission, Matthew T. Schuler, emphasized the severity of the issue. “There is much, much more work to do,”Schuler said. He warned that illegal casinos often manipulate games to reduce payouts and fail to follow financial regulations or tax laws.

“Don’t go in, they will take advantage of you,”Schuler cautioned, explaining that many venues games of skill but actually use unregulated machines that are rigged against players.

In one example, Holly Hirsch was indicted on multiple felony charges, including casino law violations and money laundering, related to her alleged operation of an illegal gambling business called “Talk-N-Skills” in Toledo. She has pleaded not guilty.

Source:

“‘Any Ohioan that goes into one of these is at risk’: The crackdown on illegal casinos”, 13abc.com, May 20, 2025.

“New bill to make iGaming legal in Ohio, but only for the current casinos”, cleveland19.com, May 20, 2025.