Sponsors unveil bill to legalize online casino games in Ohio, propose licensing limits, $50M upfront fees and 28% tax rate

Chairman Stewart and Majority Leader John presented House Bill 298 to authorize Internet gambling in Ohio, expanding online offerings beyond sports wagering to include virtual slot machines and live table games administered by licensed operators.

Under the sponsors’ outline, licenses would be limited to in‑state casino and racino owners (one license per owner, resulting in nine available licenses in the sponsors’ draft), with a $50,000,000 upfront license fee per license and $10,000,000 renewal fees every five years. The bill would establish a 28% tax on Internet gambling gross receipts and would constrain promotional credits so that online operators could only offer promotions redeemable at brick‑and‑mortar facilities (meals, hotel stays, in‑person perks) rather than cash credits strictly usable online. Sponsors estimated mature market tax revenue between $400,000,000 and $800,000,000 per year but noted different modeling yields varying figures. The sponsors framed iGaming as a way to capture illegal and offshore market activity and to bring security and consumer protections to an existing unregulated marketplace.

Ranking Member Sweeney, other members and subsequent questioners raised concerns about cannibalization of brick‑and‑mortar revenues, the impact on jobs and local economies, the effect on lottery profits, advertising to younger users, problem‑gambling impacts and whether the 28% tax rate and licensing regime were the right choices. Sponsors said neighboring states (Michigan, Pennsylvania, West Virginia) have moved down this path and that regulated markets have generated additional revenue; they said the bill intentionally mirrors some features of sports betting tax treatment rather than the 33% constitutional casino rate. The sponsors and industry witnesses also discussed voluntary self‑exclusion, multifactor identity verification, deposit and wager limits, and other responsible‑gaming tools.

Rick Lombardo, senior vice president of government affairs for MGM Northfield Park and MGM Resorts, testified in favor of legalization and urged a licensing framework that recognizes experienced operators and responsible‑gaming practices. MGM described customer verification procedures, deposit/wager limits, time reminders, self‑exclusion and the GameSense responsible‑gaming program as front‑line protections. Committee members asked whether legalization would increase the number of people gambling, the share of problem gamblers, advertising safeguards and whether 1% allocated for problem‑gaming programs would be adequate; sponsors and industry witnesses said many details remain to be worked out in statutes, administrative rules and in the budget process.

The committee received extensive Q&A but took no final vote on House Bill 298 during this hearing; sponsors said they welcome continued debate and stakeholder input.