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Ohio is stepping into the online casino world. What started as quiet talks has now turned into real plans. A new bill called Senate Bill 197 (SB 197) has been introduced by State Senator Nathan Manning. If passed, it will legalise online casino games, digital horse racing bets, and online lottery tickets in Ohio. But this bill also suggests very high taxes and license fees, more than any other state in the U.S.
What the New Ohio Gambling Bill Proposes
SB 197 has different rules for different types of operators. Here’s what it says:
If a land-based casino, like Caesars or PENN Entertainment, owns at least 50% of an online casino platform, they will:
- Pay $50 million for a five-year license
- Pay $5 million to renew the license
- Pay 36% tax on all online gaming profits
- Higher Fees for Big Online Brands
Online-only platforms or those using third-party companies, like BetMGM or DraftKings, will face bigger charges:
- They must pay $100 million for a license
- $10 million for renewal
- A 40% tax rate, the highest in the U.S.
- This would make Ohio the most expensive state for online casino operators, going beyond Pennsylvania, which currently has the highest 36% tax rate.
More Than Just Money: New Rules and Restrictions
SB 197 doesn’t only focus on money. It also includes several new rules:
- Retail sports betting taxes will drop from 20% to 10%
- Ads can’t use the word “free” if the offer includes real money deposits
- No gambling ads allowed on college campuses
- Includes stronger player protection laws
- About 99% of the money made from these taxes will go into Ohio’s general fund. The remaining 1% will be used to help people with gambling problems.
Another Bill in the Mix: House Bill 96
There’s more action happening. House Bill 96, created by Rep. Brian Stewart, has already passed the Ohio House and is now under review by the Senate. It aims to:
- Make online casino games and poker legal
- Let state agencies manage the rules
- Raise state income without increasing general taxes
Governor’s Proposal: Sports Betting Tax to Rise Again?
Back in February, Governor Mike DeWine suggested increasing Ohio’s sports betting tax rate from 20% to 40%. This came only two years after it was raised from 10%. If this passes, it would also move Ohio higher up in national rankings for gambling tax rates.
A Big Change for Ohio
Ohio has always been strict about gambling laws. But now, things are changing. With support from both Senate and House leaders, Ohio might soon join states like Michigan, Pennsylvania, and New Jersey in offering full online casino experiences.
Senator Manning believes these changes could bring in $300 million to $1 billion every year for the state. That’s a lot of money that can go into public services without raising taxes on the people.
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