The bill is the latest effort, although the tax implications may scare some away
Lawmakers in Ohio are taking a fresh look at expanding online gambling in the state, with a new proposal that could bring significant changes to how digital gaming is regulated and taxed. State Sen. Nathan Manning has introduced Senate Bill 197, a piece of legislation that aims to legalize iGaming for licensed operators and bring in new revenue for the state.
The proposal outlines a licensing fee of $50 million, valid for five years, with a $5 million renewal cost. Most of the income from this initiative would go directly into the state’s general fund, with a small portion—just 1%—allocated to programs addressing problem gambling.
A key element of the bill is its proposed tax structure, which would rank among the highest in the country. Operators using their own gaming platforms would be taxed at 36%, while those partnering with third-party platforms like DraftKings or FanDuel would pay 40%. If passed in its current form, Ohio would have the highest tax rate among states with open iGaming markets.
By comparison, Pennsylvania currently leads with a 36% tax rate, while Michigan uses a sliding scale based on revenue. Other states like New Jersey and Connecticut fall below that threshold, with rates of 15% and 18%, respectively. The bill also proposes a tax break for retail sports betting, cutting the rate from 20% down to 10%.
Beyond online casino games, SB 197 includes language to permit online lottery play and allow mobile betting on horse races. Revenue from iLottery games would be directed toward education funding.
Another iGaming bill may be coming soon from State Rep. Brian Stewart, who has expressed interest in drafting separate legislation. Ohio is clearly exploring multiple paths to tap into online gaming as a long-term source of revenue.
