Online Gambling Set to Become Legal in Ohio, Yet Prohibits Sweepstakes Casinos?
Ohio Proposes Legislation to Legalize Online Gambling, Ban Sweepstakes Casinos
Richard Janvrin, a seasoned journalist specializing in sports, sports betting, and online casinos, has reported on the latest development in the gambling industry in Ohio. The state has proposed House Bill 298 (HB 298), a legislation that legalizes internet gambling while prohibiting online sweepstakes games.
HB 298 sets forth the following key provisions:
- The bill would legalize online casino gaming, allowing existing land casinos and racinos in Ohio to operate online platforms. However, it excludes online lottery and parimutuel wagering.
- Each iGaming license would cost $50 million upfront and $10 million for renewal every five years. Gross gaming revenue would be taxed at a 28% rate, with the majority of the revenue going to the state's general fund and a fraction allocated to problem gambling programs.
- The bill explicitly bans online sweepstakes-style games, often criticized for their resemblance to gambling without regulation.
- The Ohio Casino Control Commission would oversee the regulation of iGaming, and only individuals over 21 years old would be allowed to participate.
- The bill sets a deadline for the rollout of iGaming by March 31, 2026.
If passed, HB 298 would have several implications for the gambling market in Ohio:
- The outright ban on sweepstakes platforms would affect popular websites and apps that offer dual-currency systems, forcing them to cease operations in Ohio.
- By limiting licenses to existing in-state operators, the bill restricts market entry for new entrants, potentially benefiting established gaming companies.
- The bill includes measures to control problem gambling, such as banning the use of credit cards to fund online accounts.
Regarding criminal penalties, it is implied that unauthorized sweepstakes operations could face legal consequences given their status as illegal gambling under the proposed legislation.
Ohio is not alone in this move, as other states like New Jersey, Louisiana, and Maryland have also introduced or passed similar legislation to ban sweepstakes gaming.
Richard Janvrin is a graduate of the University of New Hampshire with a degree in English/Journalism. He has worked as a professional writer since 2015 and is dedicated to delivering the most current and precise news in the online casino industry.
- With the passing of HB 298, sports betting enthusiasts in Ohio may soon have the opportunity to engage in online casino gaming, as the bill legalizes this activity while excluding online lottery and parimutuel wagering.
- The bill's prohibition on online sweepstakes-style games could potentially eliminate popular poker and jackpot platforms, currently offering dual-currency systems, within Ohio's borders.
- In Vegas-style casinos of the future, players aged 21 and above could enjoy poker and other games regulated by the Ohio Casino Control Commission, with the state's online gambling market set to launch by March 31, 2026, under the proposed legislation.
