Jul 27, 2025 5 min read

Ohio could soon join the ranks of other US states that have legalized online gambling. As the wave is sweeping across the US, each state is doing its best to make this new trend legal, safe, and fun. And Ohio is aiming to legalize online casinos, lottery, and horse-race wagering with its Senate Bill 197. Not only will it shape and change the online and legal landscape of Ohio, but it will also provide substantial revenue for the state.

The Proposed Framework

Senate Bill 197 allows the state’s four brick-and-mortar casinos and seven racetracks to each hold a single license to offer online gaming platforms. Licensees face a steep $50 million fee, with renewal costing $5 million after five years. Those who partner with third-party platforms will pay $100 million upfront and $10 million for renewal.

Tax rates are set at either 36 percent or 40 percent, depending on whether the platform is in-house or externally managed. Until this bill is finalised, local players still have options and are not left in the dark. Lloyd Mackenzie has written an extensive Pokerscout list of new casinos that offer anonymous gaming, massive bonuses, the newest provably fair games, cutting-edge mechanics, and sleek interfaces, among other benefits for players from Ohio and others.

Revenue and Public Services

So what numbers are being thrown around? One of the main incentives for this proposition is the possible revenue bump, and experts place the sum from anywhere starting at $300 million to $800 million. That is a big stretch in between, which means there are plenty of factors at play. Regardless, 99% of the proceedings are slated for Ohio’s General Revenue Fund.

That leaves 1 percent for problem-gambling programs. While 1 percent may appear modest, it aligns with other states’ allocation strategies. Lawmakers argue that shifting current offshore betting activity into a regulated framework keeps more funds in-state and provides funding for essential services.

Consumer Protections

The bill includes age restrictions, requiring players to be 21 or older. Limits on activity include a weekly deposit cap of $500 and a five-hour play limit per week. Advertising rules would also change. Ohio forbids gambling ads on college campuses and bans the use of the word “free” in marketing. Proponents say these measures aim to reduce impulsive behavior and minimize risk, demonstrating a balanced approach between growth and protection. Indoor online entertainment could surely find its place as Ohio players choose to remain indoors during the scorching 100+ degree heatwave. The sooner more options become legal and available, the better.

Consolidating Authority

To simplify oversight, SB 197 proposes that the Ohio Casino Control Commission absorb control of online gaming, the current State Racing Commission, and video lottery terminal regulation. This is not the end of what the commission would be in charge of, as they would also manage charitable and sweepstake gaming by 2027, giving them more authority.

Tax Comparison

The tax thresholds in SB 197 are among the highest in the country. Ohio’s 36-40 percent proposals exceed Pennsylvania’s 36 percent and far surpass Connecticut’s and New Jersey’s 15-18 percent range. Supporters see this as a way to maximize public revenue. Critics suggest the high rates could drive platforms toward unregulated markets or make legitimate operators hesitant. It becomes a question of balancing income and market participation.

Legislative Progress

SB 197 was introduced May 13, 2025, by Sen. Nathan Manning and assigned to the Senate Select Committee on Gaming. As of mid-May, it has received a first hearing with debate over whether voter approval is needed. A companion House bill (HB 298) filed by Rep. Brian Stewart would limit licenses strictly to existing Ohio casino and racino operators, with a lower flat 28 percent tax rate. That proposal also includes a ban on sweepstakes-style virtual gambling.

Supporting the Argument

Backers often note that Ohioans already wager billions offshore. In 2023, state sports bets alone exceeded $7.7 billion, producing nearly $935 million in operator revenue. Redirecting even a portion of that into legal channels could support local services. There’s a human element to consider, too: residents who prefer familiar, home-state businesses may welcome a regulated option.

Uncertainties and Criticisms

Despite momentum, some question if exceedingly high taxes could dampen market growth. Debates about whether the issue needs a public vote linger. Governor DeWine’s push to double sports betting taxes separately drew criticism and was dropped from the broader budget plan. And opponents caution that funds intended for the public good might ultimately support priorities like stadium projects favored by influential stakeholders. Ohio is looking for ways to boost its economy, revenue, and employment, like via the chemical buildout, Bill 197, and other measures. But will it succeed? Time will tell.

What Comes Next

With everything said, the bill is still far from done and signed. There is still plenty of work to be done, from legislative hearings to hearing what the lawmakers have to say. Currently, the goal is to merge the two bills into one, as they are stepping on each other’s toes. We have one bill for maximising revenue and the other for modest taxation, which will require talent to balance. And the second this unified bill passes both chambers, the bill will be at Governor DeWine’s desk waiting for approval or veto.