Lawmakers in the Ohio legislature are debating two new bills that could transform the gambling landscape in the state.
SB197 has been introduced in the Senate, and HB298 has been introduced in the House of Representatives. Both would open the door for legal iGaming, but the former leaves the sweepstakes casino model untouched, while the latter looks to ban it.
Ohio is currently home to land-based casinos and racinos, in-person and online sports betting, and a state-run lottery, but online casinos are not permitted. This combination is fairly typical of many US states, but some Ohio lawmakers are hoping to shake things up this year. Actually, efforts have been made and failed previously, so these new bills are far from a done deal.
In terms of Ohio sweepstakes casinos, they operate outside of traditional gambling statutes thanks to the dual currency system, which removes the element of ‘consideration’ – or payment – required to classify them as gambling. However, certain lawmakers and other stakeholders in the Buckeye State are evidently hoping to clamp down on this thriving format.
What Exactly are SB197 and HB298 Hoping to Achieve?
Let’s look at the two bills in more detail.
SB197 was introduced to the Ohio Senate on May 13 by Senator Nathan Manning and looks to overhaul the state’s gambling laws. It’s a 700+ page document that repeals many gambling statutes, while adding new wording to:
- Legalize and regulate online casino games, plus online lottery and parimutuel horse race wagering
- Introduce licensing and taxation for internet gambling at a rate of 36%
- Permit internet gambling licensing for existing brick-and-mortar casinos and racinos in Ohio
The text mentions ‘sweepstakes’, but not ‘sweepstakes casinos’. That’s because SB197 does refer to ‘sweepstakes terminal devices’, like the ones you’d find at a sweeps cafe. These venues were popular across the US in the early 2010s, and in Ohio some still exist, albeit with strict limitations on the value of prizes they can offer. As we can see, SB197 would leave sweepstakes casinos such as WOW Vegas, Stake.us, and High 5 untouched in Ohio.
Unfortunately, that’s not the case with HB298, which was introduced to the House on May 20 by Representatives Brian Stewart and Marilyn John. It’s a smaller bill at 191 pages, and it aims to:
- Legalize and regulate online casino games
- Introduce licensing and taxation for internet gambling at a rate of 28%
- Permit internet gambling licensing for existing brick-and-mortar casinos and racinos in Ohio
- Outlaw ‘online sweepstakes games’
HB298 defines ‘online sweepstakes games’ as:
“A game, contest, or promotion to which all of the following apply:
(1) It is available on the internet, through a mobile application, through a computer terminal, or through another similar device.
(2) It utilizes a dual-currency system of payment that allows a player to exchange the currency for a cash prize, cash award, or cash equivalent, or for a chance to win a cash prize, cash award, or cash equivalent.”
The bill goes on to say that no person should:
“Conduct, or participate in the conduct of, a sweepstakes in the form of an online sweepstakes game”
It appears this crime would be charged as a first-degree misdemeanor for a first offence, turning into a felony of the fifth degree for repeat offenders.
Traditional Gambling Industry Speaks Up
Aside from senators and representatives, other regional stakeholders have made presentations during the debate so far. One was Rick Limardo, Senior VP of Government Affairs for MGM Northfield Park; unsurprisingly, he strongly criticized the sweeps industry:
“This illicit sweepstakes industry is not subject to any state gross gaming tax; does not offer any meaningful responsible gambling tools; and does not employ sophisticated KYC, identity or age-verification processes – to the contrary, most of these platforms allow prospective customers to simply check a box and self-certify that they are of gambling age.”
While it’s true that sweepstakes casinos do not pay gambling tax rates – as they are not classed as gambling – it’s false to say they don’t employ KYC checks, or offer responsible gambling tools. At least the sweepstakes casinos that we recommend here on SweepsKings adhere to strict checks as part of the signup or redemption process, and, while RSG tools can sometimes be improved, the vast majority of platforms offer these to players already.
Limardo is perhaps referring to the more offshore-style sweeps casinos that we include on our blacklist, in which case it makes you wonder if lawmakers and other stakeholders truly understand the modern social gaming landscape.
Ohio Enters the Debate
Ohio has brought itself into the sweepstakes casino debate, one that is spreading across US state legislatures in 2025. The Buckeye State is now the 12th location to introduce an anti-sweepstakes proposal, but only one state this year (Montana) has passed such a bill.
We’ll add Ohio to our list of states to monitor for now and keep you updated with any significant developments. Unlike most other states, Ohio has a year-long legislative session, so there’s no rush or deadline to worry about for its lawmakers. That being said, both bills are very early on in their journeys through the legislature, and it remains to be seen how they’ll progress.
Author: Joseph Allen
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