In a key strategic presentation at the iDevelopment and Economic Association (iDEA) legislative panel on September 18, 2026, Ohio State Representative Brian Stewart (R-12) detailed a critical compromise designed to advance online casino legalization in the Buckeye State: tying iGaming promotional incentives exclusively to brick-and-mortar casino venues.

Under the proposed regulatory model, licensed operators would be prohibited from offering digital-only free-play promotional credits. Instead, all marketing credits generated via online casino platforms would have to be redeemable in person at Ohio’s 11 commercial casinos and racinos for physical amenities, including land-based slot play, hotel accommodations, and food and beverage services.

“We would say that you can’t offer online promotional credits,” Stewart said. “You can offer promotional credits, but they need to be credits for the land-based casino.”

Credits That Send Players Back to the Floor

The idea is that a company running both an Ohio casino and an online platform would attract new online players with perks at its bricks-and-mortar property. Ohio has 11 in-person gaming facilities, and national operators including Caesars, Hard Rock and PENN Entertainment run some of them.

It is not a brand-new idea. When Stewart announced House Bill 298 in May 2025, the bill already said promotional credits for iGaming couldn’t be for free play online but could be for meals, hotels or free play at the actual casinos. What’s new is that he’s now selling it as the thing that can get the bill moving.

Testimony delivered by Rep. John during committee hearings highlighted that Ohio residents currently wager an estimated $6 billion annually on unregulated, offshore iGaming platforms, sending 85% of market volume outside the state’s tax base.

The Sports Betting Lesson

Stewart said the plan comes out of Ohio’s experience with sports betting. FanDuel and DraftKings used national reach and heavy promotional spending to grab much of the online sportsbook market after launch, and Ohio-based businesses couldn’t match offers worth hundreds of dollars in bonus bets.

Ohio already makes sportsbooks pay for their promotions. Sports gaming receipts are taxed at 20%, and operators can’t deduct promotional credits wagered by players until January 1, 2027, when 10% becomes deductible, rising to 20% from 2032.

Keeping the Casinos on His Side

HB 298 would only license Ohio’s existing casinos and racinos. Stewart said their backing is essential, because an open fight between online operators and the venues would sink the bill before it started. If the bill turns straight into a “turf fight” between gaming interests, he said, “it’s dead on Day 1.”

The bill he filed with co-sponsor Marilyn John set the initial license at $50 million with $10 million renewals, and a 28% tax on online casino revenue, which Cleveland’s WOIO reported matches what Michigan charges. The estimate at the time was $400 million-$800 million a year, with 1% going to problem gambling services and the other 99% to the general fund. John testified that Ohioans already spend $6 billion on iGaming, and that 85% of it goes to illegal sites.

The Senate Bill and the Neighbors

The Senate has its own version. Senator Nathan Manning’s Senate Bill 197 covers internet casinos, online lottery and online horse race betting, with $50 million licenses, $5 million renewals and a 36%-40% tax that he says could raise $500 million a year.

Ohio’s neighbors aren’t waiting. Stewart and panel moderator John Pappas said Ohio residents can cross into Michigan, Pennsylvania or West Virginia to play regulated online casino games while Ohio collects none of the tax. In Michigan, operators paid $61.2 million in iGaming taxes and fees to the state in August alone.

DeWine’s Exit Changes the Math

Gov. Mike DeWine signed Ohio’s sports betting law and has since said he opposes it. He’s term-limited and leaves office in 2027, and Democratic candidate Amy Acton has signaled she’d work to bring in online casinos. Republicans hold 65 of the 99 seats in the Ohio House, but Stewart said big majorities can simply move the fights inside the caucus.

Some conservative lawmakers object to gambling on moral grounds. Stewart’s bet is that the money changes minds. “A lot of folks will hold their nose if they believe that this is a significant way to achieve other budget priorities,” he said. In a state that already allows lottery games, casinos, racinos and sports betting, Stewart has called real-money online casinos the next logical step.