Ohio’s $1B online gambling bill gains momentum

A high-stakes move with bipartisan backing

Backed by a bipartisan coalition, SB 197 has already passed initial scrutiny and is now under evaluation by the Senate Select Committee on Gaming. The bill proposes a licensing structure that allows the state’s four casinos and seven racinos to operate a single iGaming platform each, either independently or through a vendor.

The current price for a gambling license is $50 million, renewable every five years at $5 million. If a platform is run by an out-of-state management company, fees double to $100 million with a $10 million renewal.

Financial decision

For Ohio lawmakers, the appeal is as much financial as it is legislative. With online gambling projected to generate over $1 billion annually, the state sees a chance to both compete with unregulated sites, which pulled in an estimated $3.7 billion from Ohioans last year, and capture meaningful revenue for public programs.

Under SB 197, iGaming operators would be taxed at 36% (or 40% for outside vendors), with 99% of proceeds funnelled into the Ohio General Fund. The remaining 1% would support problem gambling programs.

Sen. Manning says the potential revenue gain could top $500 million per year, citing figures from states like Pennsylvania, which collected over $6 billion from legal online gambling in 2024.

Still some concerns

Still, not all stakeholders are sold on the idea. Groups like the National Association Against iGaming (NAAiG) warn that SB 197 could cause economic harm, citing a projected $602 million loss in economic value and 2,800 job losses tied to potential cannibalization of Ohio’s land-based casinos.

Even operators like Jack Entertainment, owner of JACK Cleveland Casino, have historically resisted online casino expansion, fearing it would drain foot traffic and undercut local economic activity.

Manning’s bill tries to address these concerns by offering a tax break to retail sports betting operators, reducing the current rate from 20% to 10%. Whether this is enough to win over skeptics remains to be seen.

Evolution of public opinion

What is clear, however, is that public and political attitudes are evolving. 

Republican House Speaker Matt Huffman stated that Ohioans have “turned the corner” on gambling, while Senate President Rob McColley remarked that citizens “want more choice” in how they spend their time and money.

This marks a significant shift from previous years when online gambling was a political third rail. With over 28% of Americans gambling online daily, the market is simply too large and too lucrative for many lawmakers to ignore.

Constitutional questions remain

Still, constitutional questions linger.

The Ohio Constitution only explicitly allows three forms of gambling: state lotteries, land-based casinos, and charitable bingo. 

While the state has previously legalized other formats like sports betting and charitable card games, it’s unclear whether courts will green-light a broader online framework.

Analysts believe the courts will ultimately decide if SB 197 holds water, a decision that could have ripple effects far beyond Ohio’s borders.

A regional crossroads

Ohio’s push comes at a critical moment for online gambling in North America.

In New Jersey, regulators are considering stricter enforcement on affiliate marketing and responsible gaming. Meanwhile, Alberta’s government has launched consultations to explore opening its iGaming market, potentially following Ontario’s example.

Whether SB 197 passes or stalls, its introduction signals a growing trend. U.S. states are increasingly viewing online gambling not as a taboo but as a policy lever, one that can fund budget gaps, modernize regulations, and combat the rise of unregulated markets.