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Ohio’s stalled push to legalize online casinos has a new proposal attached to it: allow digital operators to run promotions only when those promotions direct players toward the state’s existing physical casinos and racinos. State Rep. Brian Stewart outlined the approach during an iDevelopment and Economic Association panel on Friday. He said an online-casino market could bring Ohio as much as $400 million in annual tax revenue, according to GamblingNews.

The proposal comes after months of limited progress on Ohio iGaming legislation. The issue may also remain unresolved as the state’s political calendar changes: Gov. Mike DeWine could leave office before the matter is settled, while contenders for the governorship have emerged ahead of the midterms. The reporting says one of DeWine’s rivals may be more favorable toward online casinos.

Who Wins Under Stewart’s Model

Stewart’s approach would make the connection between online promotions and physical venues central to an iGaming market. Rather than relying on traditional online bonuses, promotions offered by iGaming operators would be intended to send foot traffic to a casino or racino in Ohio.

Stewart has also argued that future online-casino licenses should be limited to the state’s existing racinos and casinos. His stated rationale is that those operators have already disbursed millions in support of local economies and communities. Under that view, online gaming would be linked to businesses already operating within Ohio’s gaming sector rather than treated separately from the land-based market.

The proposal therefore places particular importance on the role of existing casino and racino operators. It frames their physical properties as part of the policy objective, with online promotions designed to support visits to those locations.

Promotions as a Traffic Valve, Not a Growth Lever

The distinction in Stewart’s proposal is between promotions that encourage online gambling and promotions tied to a land-based venue. The source describes the latter as an alternative to traditional bonuses offered by online casinos.

That would shift the purpose of a promotion under the proposed framework. Instead of being used solely as an online incentive, a promotion would need to be connected to traffic at a physical casino or racino. The reported policy objective is clear even though the available account focuses on Stewart’s proposal rather than detailed statutory language.

As presented, the proposal is a draft law under consideration. Its central feature is the requirement that iGaming promotions support land-based gaming businesses in the state. That leaves the measure’s progress dependent on the legislative process and on whether lawmakers and affected interests can agree on its terms.

Stakes Framing

The revenue case is a major part of Stewart’s argument. He has said online casinos could generate as much as $400 million annually in tax revenue for Ohio. The reporting characterizes online casinos as a significant gambling-tax contributor because they can generate interest and spending that produce payments to state coffers.

Ohio’s sports-betting tax receipts provide the comparison cited in the reporting. Since online and retail sports betting launched on January 1, 2023, Ohio has collected $600 million in sports-betting tax. Stewart’s estimate for online casinos is an annual projection, while the sports-betting figure covers the period since that launch.

The proposal also raises responsible-gambling questions. The source says advocates are concerned that increased spending on online gambling could result in greater harm for players. It further notes that removing direct bonuses intended to encourage online play could reduce some adverse consequences, because bonuses are usually used to push players toward excessive gambling.

That creates a policy tradeoff at the center of the debate. Supporters can point to the potential tax revenue and a structure intended to benefit physical venues, while responsible-gambling advocates focus on the possible harms associated with increased online gambling spending.

Responsible-Gambling Advocates Sound a Caution

Derek Longmeier of the Problem Gambling Network of Ohio has raised a broader concern about gambling behavior in the state. According to the reporting, he warned that the start of the NFL season could lead to more harmful behavior across Ohio.

That warning concerns the wider gambling environment rather than a stated position on Stewart’s promotion proposal. Still, it places the iGaming discussion in a setting where responsible-gambling advocates are emphasizing the risks that can accompany increased gambling activity.

The available reporting does not present Longmeier’s warning as direct opposition to the proposed link between online promotions and physical venues. Instead, it underscores that any consideration of expanded online gambling would take place alongside concerns about player harm and excessive gambling.

A Deadlock Still Waiting to Break

Stewart has said his proposal is intended to balance competing interest groups and avoid internal strife from the start. He has presented that balance as a way to give the draft law a better chance of breaking the deadlock that has limited prior progress on Ohio online-casino legislation.

Restricting future online casinos to existing racinos and casinos, while tying promotions to physical locations, is central to that effort. The design seeks to align an online-casino framework with the interests of land-based businesses that already operate in Ohio and have supported local communities.

Whether that approach produces sufficient support remains a legislative question. The reporting describes a proposal under consideration, not a completed law, and its future depends on how lawmakers and relevant stakeholders respond.

What It Would Mean for Ohio’s Gaming Landscape

If enacted as Stewart has described it, the framework would make online casino promotions part of a strategy to direct players toward physical casinos and racinos. That would connect the digital product to land-based venues and place existing operators at the center of the proposed market.

For the state, the proposal is tied to Stewart’s estimate of up to $400 million in annual tax revenue. For responsible-gambling advocates, it raises questions about whether additional online gambling spending could increase harm, even if direct online bonuses are limited or redirected.

The proposal’s core idea is therefore straightforward: Ohio could consider online casinos while requiring the promotional side of the business to support land-based gaming properties. Its eventual effect would depend on the final legislation and whether the measure can move beyond the deadlock described in the reporting.

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