Ohio is making another push to legalize online casinos, but this time with a clear message: sweepstakes casinos aren’t welcome.
On May 20, Rep. Brian Stewart introduced House Bill 298, which would legalize online casino gambling in the state under the authority of the Ohio Casino Control Commission (OCCC). The bill outlines a tightly controlled launch, limited to existing land-based casino operators. But one of its most striking provisions is its outright ban on sweepstakes casinos, also known as social casinos.
House Bill 298 Cracks Down on Dual-Currency Casinos
While the legalization of iGaming has grabbed headlines, HB 298’s tougher stance on sweepstakes-style operators may have bigger near-term implications.
The bill doesn’t mince words. It calls out sweepstakes casinos by name and prohibits platforms that use a dual-currency system, like Gold Coins and Sweeps Coins, that simulate real gambling unless expressly authorized by the state. Running such an operation would be considered a criminal offense.
Sites like Chumba, High 5, and WOW Vegas have grown popular due to their ability to offer casino-style gameplay with sweepstakes-based prize models. But HB 298 takes the clearest stance to date in Ohio, aiming to shut those platforms down.
Limited iGaming Market, High Fees
As for who gets to participate in the regulated online casino market, only companies that already operate retail casinos or racinos in Ohio would be eligible. That means brands like Caesars, MGM, PENN, and Hard Rock could likely apply. But they’d only be allowed one online platform, even if they operate multiple properties in the state.
New operators or purely digital brands wouldn’t be allowed to enter under HB 298, a major difference from the Senate’s competing bill, SB 197.
The proposed licensing fees are steep. Each eligible company would pay:
- $50 million for an initial five-year license
- $10 million annually to renew
- $100,000 for equipment certification
- $50,000 application fee
- Operators would also face a 28% tax on gross gaming revenue, which is among the highest in the U.S. (equal to Michigan, higher than New Jersey or West Virginia).
All online gaming servers and operational equipment would need to be physically located in Ohio. The OCCC would also test all equipment in its own lab before launch.
iGaming Could Launch by 2026, Sweepstakes End Sooner?
If passed, House Bill 298 mandates that Ohio’s iGaming market go live no later than March 31, 2026. But the ban on sweepstakes casinos could take effect much sooner, depending on how the legislation is structured and enforced.
The bill’s language suggests Ohio is aiming to protect consumers from unregulated gambling platforms and reassert control over its rapidly evolving gambling landscape. Officials have already begun a crackdown on illegal “backroom” casinos, confiscating more than 7,500 machines since 2015. Sweepstakes sites may be next.
Competing Visions in the Senate
Meanwhile, the Ohio Senate has introduced its own proposal. SB 197, the previously mentioned bill sponsored by Sen. Nathan Manning, offers a more open market—but with even higher tax rates of 36% to 40%, depending on whether the operator owns the platform. It would also allow online lottery games and parimutuel horse betting. It would not explicitly ban sweeps casinos, though if real money online casinos were available, their popularity would likely decrease anyway.
Still, House Bill 298 has momentum. As a product of the Finance Committee chair and with backing from land-based casinos, it may be the version with the clearest path forward. And with the explicit sweepstakes ban included, it could reshape Ohio’s entire online gaming ecosystem, not just add to it.
About the Author
