COLUMBUS, Ohio — A proposal to legalize online gambling is gaining momentum in the Ohio General Assembly with the introduction of Senate Bill 197.
Introduced by Republican state Sen. Nathan Manning, the bill would authorize online casino games, poker, and horse race betting through Ohio’s four casinos and seven racinos.
The legislation sets a minimum gambling age of 21 and includes identity verification and participation limits of $500 and five hours per week per user. The Ohio Lottery would also be permitted to offer online games, excluding traditional draws like Pick 3 and Classic Lotto. National games like Powerball and Mega Millions would be accessible online one year after the bill becomes law.
Manning projects that the proposal could generate more than $500 million annually in new tax revenue. Under the bill, 99% of that revenue would flow into the state’s general fund, with the remaining 1% allocated to programs addressing problem gambling.
The bill would impose a 36% tax on online gambling revenue — increasing to 40% for companies that outsource operations to management firms. Operators would also pay steep upfront licensing fees: $50 million each, or $100 million for those using third-party management companies, potentially delivering a one-time windfall of $550 million to the state.
A separate, complementary bill is reportedly being crafted by GOP state Rep. Brian Stewart in the Ohio House.
While SB 197 would expand legal gambling options, it also offers relief to existing gambling businesses. The proposal includes a controversial provision cutting the tax rate on in-person sports betting from 20% to 10%. The state had originally set the tax at 10% when sports gambling launched in 2023, but lawmakers later doubled it. The proposed reduction would apply only to physical sportsbooks, not online platforms such as DraftKings and FanDuel.
Governor Mike DeWine has taken a different approach, calling for the sports-betting tax to be doubled to 40% to support stadium developments and youth sports programs. His proposal, which includes funding for a potential covered Browns stadium in Brook Park, was stripped from the House-passed budget by lawmakers skeptical of tax hikes.
Though SB 197 directs revenue to the general fund, speculation is mounting over how the money will ultimately be spent. Democratic state Sen. Bill DeMora warned the influx could fund income tax cuts that disproportionately benefit Ohio’s wealthiest residents. He also cited rumors that part of the revenue could go toward the Cleveland Browns’ $600 million public funding request for a $2.4 billion stadium in Brook Park.
