Ohio lawmakers are considering a different path for legalizing online casino gaming: rather than allowing digital-only bonus credits, operators could be required to offer promotions that customers redeem at a physical casino in Ohio or racino.
The proposal (House Bill 298) is still under discussion, not law, and real-money Ohio online casinos remain unavailable. But sweepstakes casinos are an option for players in The Buckeye State.
It's a topic that could shift the governor's race in Ohio. It also comes just weeks after the Ohio Lottery introduced a new game called Scratch Connect. It's a digital scratch-off option.
A New Approach to Ohio Online Casinos
Online casino legislation has struggled to move forward in Ohio, largely because brick-and-mortar gaming operators worry that internet gambling could pull customers away from their properties. State Rep. Brian Stewart has described a possible compromise intended to change that dynamic.
Under the concept discussed at an iDevelopment and Economic Association panel on September 18, operators would not be allowed to give players promotional credits that can be used only on an online casino app or website. Instead, promotional offers would need to create a reason for customers to visit an in-person gambling property.
For example, a future Ohio online casino operator might offer:
- Free slot play that must be redeemed at a casino or racino.
- Hotel discounts or complimentary stays at a participating property.
- Food, beverage, or entertainment credits for an on-site visit.
- Other promotions connected to a physical casino experience.
The goal is not simply to restrict bonuses. Supporters want online gaming to become an extension of the existing casino industry instead of a competitor that keeps players at home.
How the Proposal Would Work
The policy discussion is tied closely to House Bill 298, a measure first introduced in May 2025 to legalize and regulate internet gambling in Ohio. Ohio’s Legislative Service Commission analysis says the bill would prohibit promotional gaming credits for participation in internet gambling, while allowing promotions for in-person gaming and amenities such as accommodations, food, beverages, and entertainment at a casino or racetrack.
HB 298 includes several major provisions:
The proposed framework would authorize regulated internet gambling in Ohio under the oversight of the Ohio Casino Control Commission.
Only existing Ohio casino operators and racetrack owners would be eligible for licenses, with an initial licensing fee of $50 million and a $10 million renewal fee. The plan would impose a 28% tax on internet gambling receipts, with 99% of the revenue remaining after administrative costs directed to the state’s General Revenue Fund and 1% supporting the Problem Gambling Fund. It would also prohibit promotional credits for online casino play, allowing operators instead to offer in-person rewards, such as casino free play, hotel stays, dining, entertainment, and other property amenities.
This structure would sharply limit who can operate Ohio online casinos. The model is designed to favor existing casinos and racinos, giving those businesses a direct financial reason to support iGaming expansion. Reports describe the potential license pool as Ohio’s 11 existing casino and racino properties.
Why Lawmakers May Favor It
The central issue is cannibalization—the fear that online slots, blackjack, roulette, and similar games would replace visits to physical casinos rather than generate additional business.
That's why Ohio online casino legislations is such a big topic of discussion for each of the candidates who are running for governor.
Stewart’s approach attempts to make online and retail gambling work together. Instead of a player receiving $20 in online free play, for instance, that player might receive a reward redeemable during an in-person visit. That creates an incentive to travel to a casino in Ohio, where the customer may also spend money on dining, lodging, entertainment, or other gaming.
- This “omnichannel” model could offer several benefits:
- It may reduce opposition from existing casino and racino operators.
- It could direct online marketing dollars toward in-person tourism and entertainment.
- It would give current Ohio gaming businesses priority in a newly regulated online market.
- It could produce new state tax revenue while reserving a share for problem-gambling programs.
The trade-off is that Ohio online casinos could be less promotion-heavy than iGaming sites in other states. Digital casino bonuses, deposit matches, and online free-play offers are common customer-acquisition tools in many regulated markets. A ban on online-only promo credits could make Ohio’s market distinctive and potentially more difficult for operators to market.
Are Ohio Online Casinos Legal Now?
No. Ohio does not currently permit real-money online casino games such as online slots, table games, or live-dealer casino play. Online sports betting is legal in the state, but that does not make online casino gambling legal.
HB 298 remains a proposal rather than an enacted statute. The Ohio Senate’s legislative page lists the bill as House Bill 298, “Legalize, tax internet gambling; make other Gambling Law changes,” but the measure has not become law.
That distinction matters for consumers: a proposal to regulate Ohio online casinos does not authorize residents to play at real-money casino sites today. Anyone considering online gambling should verify an operator’s status through official state regulatory sources and avoid assuming that sports-betting authorization applies to casino games.
What Happens Next?
The proposed land-based promotion rule may help lawmakers build support among casino and racino stakeholders, but it does not solve every political question. Ohio still faces debates over tax rates, license costs, consumer protections, responsible-gambling rules, and whether the state should expand gambling at all.
For now, the most accurate takeaway is simple: Ohio lawmakers are exploring a model that would connect future online casino promotions to visits at physical properties. If HB 298 or similar legislation advances, the state could create a regulated market where online play and land-based casino visits are deliberately linked—but Ohio online casinos are not legal yet.
