Ohio Online Casinos

Real-money online gambling is prohibited in Ohio, but recent developments in the legislature and increasing support from stakeholders indicate that legalization may be on the horizon.

Although recent Ohio online gambling bills have made little progress, proponents remain optimistic. There’s a good chance that the first Ohio online casinos will launch sooner than most industry observers expect.

Unlike some states, Ohio’s primary hangup centers around legislative inertia rather than conflicts over significant issues like tribal exclusivity or deep-rooted anti-gambling sentiment.

Below is BettingUSA’s comprehensive report on the current state of online casinos in Ohio, including sweepstakes casinos as an alternative, legislative developments, market potential, and frequently asked questions.

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Sweepstakes Casinos in Ohio

Although Ohio does not yet have full-scale online gambling, sweepstakes casinos are a close alternative.

Sweepstakes casinos operate on a “no purchase necessary” model to offer casino-style games like slots and blackjack while avoiding classification as “gambling” under Ohio law.

Recommended Sweepstakes Casinos in Ohio

Potential Legal Risks for Sweepstakes Casinos in Ohio

Ohio sweepstakes casinos operate in a legal grey area because state law does not directly address the business model.

Sweepstakes casinos currently operate legally in Ohio, but they face legal risk from two avenues:

Changing Legal Interpretations

Ohio regulators may reevaluate existing laws, narrowing the loophole that allows sweepstakes casinos to operate legally.

In some states, attorneys general and gaming regulators have issued cease-and-desist orders after reconsidering the legality of such platforms.

Overlap with Sweepstakes Cafes

Ohio’s crackdown on sweepstakes cafes in the mid-2010s highlights the risks sweepstakes casinos face today.

Although today’s digital sweepstakes casinos employ a unique business model, they’re similar to physical sweepstakes operations in two ways that highlight the potential for enforcement action:

  1. Adherence to all relevant sweepstakes and gambling laws in Ohio (which did not save sweepstakes cafes from enforcement action)
  2. Close resemblance to full-scale gambling (leading to scrutiny from law enforcement and Ohio gaming regulators)

Will Ohio Legalize Online Casinos?

Momentum is growing among industry stakeholders and policymakers to legalize online gambling in Ohio.

However, legalization is not imminent, as significant hurdles remain before players can access licensed real-money online casinos in Ohio.

Factors Favoring Legalization

Ohio’s FY24-25 budget established the Study Commission on the Future of Gaming in Ohio to assess the state’s gambling industry and make recommendations to the General Assembly.

The Commission consisted of eleven members:

  • Four state representatives
  • Four state senators
  • Chairman of the Ohio Lottery Commission
  • Chairman of the Ohio Casino Control Commission
  • Chairman of the Ohio Racing Commission

In its final report, the Study Commission recommended legalizing online gambling and lottery sales in Ohio.

The Ohio Casino Control Commission (OCCC) has successfully regulated online sports betting since January 1st, 2023.

As a result, the OCCC already has infrastructure and expertise in key areas, including:

  • Identity verification
  • Know Your Customer (KYC) compliance
  • Geolocation
  • Problem gambling mitigation
  • Licensing investigations

Proponents can point to the OCCC’s success in these areas as further evidence that it can regulate Ohio online casinos safely and effectively.

Most Ohio casinos support legalizing online casinos under a framework that:

  • Tethers online gambling licenses to land-based casinos
  • Implements reasonable tax rates

Casino operators that support legalizing online gambling in Ohio include:

  • PENN Entertainment
  • Boyd Gaming
  • Caesars Entertainment
  • El Dorado Scioto Downs

Similarly, commercial online gambling brands like BetMGM, DraftKings, Fanatics, and FanDuel have lobbied for legalization, citing benefits such as:

  • Modernizing Ohio’s gambling market
  • Generating up to $410 million in annual tax revenue
  • Disrupting Ohio’s estimated $621 million illegal online gambling market
  • Expanding Ohio’s overall gambling market, including land-based casino revenue

Ohio gambling sites and casino apps could generate significant revenue for the state without raising existing taxes.

Estimates range from $200 million to nearly $700 million in new tax revenue annually, depending on the tax rate and market size.

Factors Hindering Legalization

Recent Ohio online gambling bills have stalled due to competing legislative priorities and a lack of gubernatorial support.

For instance, 2024’s SB 312 failed to advance beyond its first committee.

There’s some interest among Ohio legislators, but they haven’t yet coalesced around a unified vision that also considers the state’s existing gambling landscape.

Relatively few lawmakers have signaled support for recent online gambling bills, and fewer still have introduced legislation to begin the process.

Organizations like the Problem Gambling Network of Ohio (PGNO) and state agencies like the Ohio Department of Mental Health and Addiction Services warn that online gambling may exacerbate problem gambling rates.

The Problem Gambling Network of Ohio (PGNO) maintains an official policy of neutrality on all gambling legislation. However, it has noted concerning trends in Ohio and advises lawmakers to proceed cautiously.

In written testimony submitted to the Ohio gambling study committee, the PGNO noted that helpline calls increased 55% during the state’s first full year with legal online sports betting.

Not all of Ohio’s land-based casinos support legalization.

JACK Entertainment and Miami Valley Racing & Gaming, both headquartered in Ohio, testified before the Gaming Study Commission in 2024 to argue against legalizing online casinos.

Both operators voiced concerns over how legalizing online gambling would impact revenue and employment at existing Ohio casinos.

How Ohio May Regulate Online Gambling

Details from Ohio’s Gambling Study Commission and past bills suggest that any future regulatory model would prioritize:

  • Security and consumer protection (e.g., safeguarding customer data)
  • Mitigating negative impacts on revenue and employment in the land-based gambling industry
  • Promoting responsible gambling

The Study Commission on the Future of Gaming in Ohio avoided recommending specific regulations or policies when discussing online gambling.

However, written testimony submitted by local stakeholders included specific policy recommendations.

Common themes included:

  • Tethering online gambling licenses to land-based casinos
  • Allowing licensees to partner with third-party brands to operate multiple, independently branded online gambling platforms (“skins”)
  • Establishing a minimum age of 21 to gamble online in Ohio
  • Only permitting customers who have completed identity verification to deposit and withdraw funds
  • Allowing players to set custom time, deposit, and wagering limits
  • Ensuring tax rates are reasonable, enabling licensed Ohio gambling sites to compete effectively with offshore operators
  • Looking at other states with legal online gambling (like New Jersey) as examples to emulate for effective regulation

Insight from Past Proposals

A 2024 Ohio online gambling bill (SB 312) proposed numerous regulatory measures, including:

  • Requiring online casinos to partner with land-based casinos
  • Allowing each casino to operate multiple online gambling platforms (“skins”)
  • Imposing minimum application, licensing, and responsible gambling fees ranging from $100,000 to $300,000
  • Levying a 15% tax on online gambling revenue
  • Permitting Ohio to enter multi-state poker compacts

Ohio Online Gambling Market Potential

Several indicators suggest Ohio is a lucrative market for online casinos:

  • Population: Seventh-largest U.S. state (11.8 million residents)
  • Gambling Demand: Fans wager nearly $8 billion annually via legal online sportsbooks in Ohio
  • Comparable Markets: New Jersey, Michigan, and Pennsylvania each generate nearly $2.5 billion in annual online gambling revenue

Simple projections based on the results in other states with similar populations indicate that Ohio online casinos could easily generate $2 billion or more in annual revenue.

Using $2 billion as a conservative estimate for the market’s annual taxable revenue at maturity yields similarly outsized tax revenue for the state, depending on the tax rate:

Tax RateMarket Size (GGR)Tax Revenue
10%$2 billion$200 million
20%$2 billion$400 million
30%$2 billion$600 million

Those figures generally align with projections from several other sources:

  • Vixio Estimates: According to a 2024 Vixio market forecast, legal Ohio online casinos could generate $1.954 billion in gross gaming revenue and $342-$645 million in new tax revenue
  • Ohio Legislative Service Commission: The Legislative Service Commission once estimated that the Ohio online gambling market could generate $500-$650 million in new tax revenue for the state. That figure may have been overly conservative because it was based on smaller revenue totals reported by other states in prior years.
  • Sports Betting Alliance: In 2024, the Sports Betting Alliance estimated Ohio casino apps could generate $205-$420 million in new tax revenue.

Ohio Online Gambling FAQ

No. Ohio has legalized online sports betting but not online casinos or poker.

It’s too early to predict when Ohio will legalize online casinos, but growing support among lawmakers and industry leaders indicates it could happen in the coming years.

Yes. Sweepstakes casinos adhere to all federal and state laws.

However, sweepstakes casinos’ similarity to online gambling makes them susceptible to future legal action.

Sweepstakes casinos are self-regulated in Ohio, so they set their own minimum age limits – typically 18+ or 21+.

The Ohio Casino Control Commission is the go-to choice for oversight duties because it has experience regulating land-based casinos and online sports betting.