House Bill 298 seeks to ban sweepstakes casinos in Ohio
If passed, Stewart’s bill would mandate the rollout of online gambling in Ohio by March 31, 2026
The bill was filed one week after Senate Bill 197
Ohio lawmakers have unveiled a second bill that would allow real money casinos to offer gambling services to residents of the Buckeye State. Led by Representative Brian Stewart, House Bill 298, seeks to outlaw sweepstakes casinos.
The bill seeks to offer limited gaming options to Ohioan players; only four casinos in the state, plus seven racinos, will be issued a license that allows them to operate legally within its borders. This will make Ohio join the other seven states that have legalized online gambling. We’ll break down the two bills that the legislature is considering.
While the two bills seek to legalize iGaming in Ohio, there are a few differences between them. Let’s check them out:
Nathan H. Manning’s bill SB 197 has 700 pages, and it proposes that the Ohio Casino Control Commission may only issue an internet gambling license to the current 11 land-based casino operators and permit holders. These are seven racinos and four brick-and-mortar casinos. Manning’s bill sets out a $50,000,000 price tag for operators who are issued a license for the very first time and an additional 5-year renewal fee of $5,000,000. Ohio operators would also pay 36% tax on GGR (Gross Gaming Revenue), which is the total revenue that operators retain after paying players their winnings.
The tax rate would jump to 40% if the operator decides to partner with a management company, with the licensing fees increasing to $100,000,000 for license holders who are not based in Buckeye State. What’s more? The bill would legalize iLottery and permit pari-mutuel horse racing wagering.
On Wednesday, May 2120, a week after the introduction of Senate Bill SB 197, State Rep. Brian Stewart filed a separate bill (House Bill 298). The bill would prohibit sweepstakes casinos while legalizing real money gaming sites and apps. That means Ohioan players won’t be able to play sweepstakes games online. Unlike SB 197, HB 298 would not permit placing wagers online on horse racing, nor would it legalize online lottery games.
Under the proposed law, online gambling would only be allowed through the 11 licensed operators in Ohio. Only racing permit holders and casino operators can procure a license from the Ohio Casino Control Commission, with each operator restricted to running one gambling platform.
Another notable difference between the two bills is that Stewart’s bill calls for a 28% tax rate. Of these, 99% would go to the General Revenue Fund, the state’s primary operating fund. The remaining 1% would be set aside as the Problem Gambling Fund. When it comes to licensing fees, HB 298 also calls for an initial fee of $50,000,000, but the renewal fee has doubled, meaning operators will have to pay $10,000,000.
The bill would also prohibit gambling sites and apps from dishing out bonuses and promo credits to Ohioan players, which is quite interesting since this is the first state to do so. What’s more? Players won’t be able to fund their gaming accounts with credit cards since Stewart’s bill would not permit this. Players must also be 21 years or older to engage in online gambling within the borders of Ohio.
House Bill 298 defines online sweepstakes games as online or mobile-enabled games that allow players to use virtual currencies with the aim of winning real money prizes or cash-equivalent prizes.
Most US states haven’t prohibited sweepstakes casinos because they don’t support real money gambling. Instead of using real money to play like RMG casinos, these platforms utilize a dual currency system. Let’s start with Gold Coins; this is a free-play currency with no monetary value and allows players to enjoy a range of social casino games purely for entertainment purposes. Sweeps Coins (SC) are the second currency you will find at sweepstakes sites, and they cannot be purchased since social gaming sites give them out for free as a bonus. You can use SC to play social casino games and redeem your winnings for real prizes on legit US casinos.
Sweepstakes casinos are a great alternative for players located in states where real money gambling hasn’t yet been legalized. If you are looking for reliable sweeps sites that offer a safe and fair social gaming experience, check out our ultimate list of sweepstakes casinos in the US. These sites have a range of casino-style games that players from most US states can play legally, including sweepstakes slots, table games, and other Vegas-style games. These sites operate under the sweepstakes model and follow the no purchase necessary law by offering new and existing users numerous bonuses and promos that allow them to get free SC and GC.
The new bill, HB 298, will make Ohio one of the eight states where real money casinos are legal. It also makes Ohio the 12th state to target sweepstakes casinos. The bill hasn’t been passed yet, we’ll keep you updated on any developments.
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