Publications + Presentations

Summary

• Senate Bill 197, introduced by Senator Nathan Manning, proposes to legalize online casino gaming (iGaming) and consolidate all gambling regulations under the Ohio Casino Control Commission.
• The bill aims to modernize Ohio’s gaming laws, protect consumers, and generate state revenue.
• Key provisions include legalizing iGaming and iLottery, restructuring regulatory oversight, and implementing a unified voluntary exclusion program.
• The bill also outlines significant licensing fees and tax rates for operators, with constitutional challenges anticipated.

On Wednesday, in a standing-room only committee meeting, the Chair of the Senate Select Committee on Gaming, Senator Nathan Manning, introduced Senate Bill 197. SB 197 seeks to both legalize online gaming in Ohio and consolidate regulation and oversight of existing gaming under the Ohio Casino Control Commission. Chair Manning testified that SB 197 will modernize gaming in Ohio and provide safe, legal options for Ohioans who are already gambling online in the illegal market. Chair Manning noted that SB 197 would be a win-win because it would protect Ohioans and generate revenue for the state. 

Some key provisions of the 700-page bill include the following:

• Authorizes iGaming or online casino gaming, including slots and table games, with a launch date of March 31, 2026. 
• Authorizes iLottery 
  • Subject to certain prohibitions, such as Pick 3, Pick 4, Pick 5, Rolling Cash Five, or Classic Lotto
  • Statewide joint lotteries such as Mega Millions or Powerball could not be offered for the first year after the bill takes effect. 
• Expressly authorizes online pari-mutuel wagering on horse racing 
  • This has occurred in the state for decades in a gray area because it was never technically legalized by the legislature.
• Consolidates the regulation of gambling in Ohio under the Ohio Casino Control Commission
  • Charitable gaming, currently regulated by the Charitable Law Section of the Ohio Attorney General’s Office, would be regulated by the Ohio Casino Control Commission by January 1, 2027.
  • The State Racing Commission would be abolished, and regulation would move to the Ohio Casino Control Commission by March 31, 2026.
  • Regulation and licensing of video lottery terminals (the “slot machines” found at Ohio’s racinos) would transfer from the State Lottery Commission to the Ohio Casino Control Commission as of March 31, 2026.
• Updates the permitted hours for offering instant bingo and electronic instant bingo, and revises the formula used to determine how much of the proceeds from these games — earned by veterans’, fraternal, or sporting organizations — must be donated to a 501(c)(3) nonprofit organization.
• Codifies the Ohio Casino Control Commission and Ohio Lottery Commission’s current rules to create the Ohio Voluntary Exclusion Program, a single program that allows individuals to exclude themselves from all forms of gaming in the state.

Chair Manning testified that the proposed framework is intended to work together with brick-and-mortar operators and would not hurt their current revenue. Operators with a physical gambling facility in Ohio will be subjected to a $50 million initial fee, a $5 million renewal fee, and a 36% tax rate. Operators without a physical gambling facility in the state would be subjected to a $100 million initial fee, a $10 million renewal fee, and a 40% tax rate as currently proposed. 

Chair Manning faced questions from the ranking member of the Committee, Senator Bill DeMora, regarding the constitutionality of SB 197 since Ohio’s Constitution states that “casino gaming shall be authorized at four casino gaming facilities” at specified locations in the state. Chair Manning responded that his team was ready for this question. He stated that the General Assembly has legalized several forms of gambling outside of the constitution before, including card games at charitable events, horse racing, video lottery terminals, sports gaming, and regulated gambling adjacent items such as skill-based amusement machines and sweepstakes terminals – none of which have been found to be unconstitutional. Chair Manning noted that Ohio courts, while not addressing this exact issue, have held that the legislature can generally legalize any form of gambling that does not run afoul of other constitutional provisions.

This bill seeks to implement a massive expansion and overhaul of Ohio’s gaming industry. The Kegler Brown team will be closely monitoring this bill and will post regular updates. Don’t hesitate to contact us if you have any questions about the bill or would like to discuss how it may impact your business. The chair of our Gaming practice, Robert Dove, can be reached at rdove@keglerbrown.com or by phone at (614) 462-5443.

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