Ohio To Legalize Online Casinos, But Ban Sweepstakes Casinos?

There are currently two bills in progress in the Ohio legislature that could completely change the complexity of online gambling in the state. 

The two bills are SB197 in the Senate and HB298 in the House of Representatives. 

What the Bills Say

While both are looking to bring real-money online gambling to the state, HB298 has language in it that would legalize online gambling, yes, but ban sweepstakes casinos. 

Right now, Ohio has land-based casinos/racinos, online sports betting, in-person sports betting, and a lottery. 

Sweepstakes casinos are available, but they operate outside of the traditional real-money online gambling sphere. 

SB197 was introduced on May 13 by Sen. Nathan Manning. The bill is 700+ pages and provides wording like the following: 

• Legalizing and regulating online casino games, along with an online lottery and parimutuel horse racing.
• Taxation on internet gambling of 36%.
• Online gambling allowed for existing land-based casinos and racinos.
• There is mention of sweepstakes terminal devices, but not the casinos. 

As mentioned, HB298, introduced on May 20 by Reps. Brian Stewart and Marilyn John mention them. 

In all, this bill would legalize online gambling, have a taxation rate of 28%, permit licensing to existing land-based casinos, and outlaw “online sweepstakes games.” 

The definition of sweepstakes games, per the bill, states: 

“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.”

It then says no person shall “conduct, or participate in the conduct of, a sweepstakes in the form of an online sweepstakes game.”

The crime would be classified as a first-degree misdemeanor for the first offense, followed by a fifth-degree felony for repeat offenders.

Industry Leaders Speak Out

Rick Limardo, the Senior VP of Government Affairs for MGM Northfield Park, is against sweepstakes casinos. 

“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,” he said.

That said, many sweepstakes casinos do have KYC checks and also allow you to set limits on your account with responsible gambling tools. 

Ohio Against Sweepstakes Casinos

Thanks to HB298, Ohio is now the 12th state to introduce legislation opposing sweepstakes casinos. 

Only one state, Montana, with SB555, has passed legislation to ban them. 

We’ll see what comes of either Ohio bill and if sweepstakes casinos shall remain in the Buckeye State.