Ohio lawmakers are weighing a proposal that would tie online casino licensing and promotional offers to the state’s existing casinos and racinos. House Bill 298, introduced by State Representatives Brian Stewart and Marilyn John, would create a regulated iGaming market while prohibiting online sweepstakes games.
The measure remained before the House Finance Committee as of September 21 and had not reached a House vote. Stewart recently explained the proposal during an iDevelopment and Economic Association panel, where he described a system that would direct promotional value toward Ohio’s physical gaming sector.
“We would say that you can’t offer online promotional credits,” Stewart said. “You can offer promotional credits, but they need to be credits for the land-based casino.”
Online Licenses Could Require Casino Links
The proposal would make relationships with Ohio’s established gaming properties part of the online licensing framework. Eleven casinos and racinos currently operate in the state and could potentially qualify under the approach.
Several major operators already have businesses in Ohio, including Caesars, Hard Rock and PENN Entertainment. Stewart has pointed to these existing investments while discussing how lawmakers could structure the online market.
He has also warned that competing interests within the gaming industry could slow the bill if they fail to reach common ground.
Under the promotional model, online operators would be able to provide incentives that customers could redeem at physical gaming venues. The approach follows concerns Stewart has raised about Ohio’s sports betting market, which launched on January 1, 2023.
He has said large national sportsbooks such as FanDuel and DraftKings possessed greater promotional resources than smaller Ohio businesses when sports betting began.
Tax, Licensing and Revenue Provisions
HB 298 would impose a 28% tax on internet gambling receipts under its introduced terms. An initial internet gambling operator license would carry a $50 million fee.
The Legislative Service Commission has estimated that legal online gambling could produce hundreds of millions of dollars in additional annual General Revenue Fund receipts. The bill’s fiscal analysis also calls for 1% of net internet gambling revenue to go toward the Problem Gaming Fund.
Stewart has cited projections that online casino gaming could bring Ohio as much as $400 million each year. That potential revenue has become part of broader budget discussions, including proposals from some Republican lawmakers involving reductions or elimination of the state income tax.
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House Action Has Yet to Advance
Ohio already permits sports betting and land-based gambling, while Michigan, Pennsylvania and West Virginia have regulated online casino markets. The state previously expanded casino gaming through a voter-approved constitutional amendment before lawmakers established sports betting through legislation.
Stewart has acknowledged that disagreements among members of the Republican-controlled legislature could affect HB 298’s prospects. He has also questioned why poker remains outside Ohio’s permitted gambling framework.
For now, the bill remains in the House Finance Committee. Its licensing and promotional provisions could receive further attention as lawmakers consider internet casino legislation, although HB 298 had not advanced to a House vote as of September 21.
Source:
"Ohio iGaming Bill Connects Online Bonuses to Casinos", realmoneyaction.com, September 23, 2026