Ohio’s iGaming Shift: Proposed Online Bonuses Linked to Land-Based Casino Visits

Political movement in Ohio is picking up speed regarding the legalization of virtual gambling. After months of stagnation, a new legislative draft is bringing a fresh perspective to the iGaming debate. The core of the proposal is as unconventional as it is strategic: instead of granting players traditional welcome bonuses for signing up on an app, future promotions must be tied to visiting physical casinos or racinos. This ensures that the digitalization of gambling does not come at the expense of established operators who have already invested millions into the local economy.

State Rep. Brian Stewart recently presented this plan during a panel of the iDevelopment and Economic Association. His goal is to appease various stakeholders in the state. Previously, there were massive concerns that online offers could siphon guests away from brick-and-mortar casinos. By linking online licenses to existing locations and transforming bonuses into incentives for on-site visits, the aim is to create a synergy that opens the digital market while supporting physical retail. Whether Governor Mike DeWine will sign the bill before the end of his term remains to be seen, as the midterms and new gubernatorial candidates could shift the timeline.

Numbers and facts

The economic expectations for legalization are immense. Brian Stewart estimates that Ohio could collect up to $400 million annually in taxes from online casinos. In comparison, since the launch of sports betting on January 1, 2023, the state has generated approximately $600 million in tax revenue. Experts believe online casinos could be significantly more lucrative because they drive higher engagement and spending. Cesar Fernandez of FanDuel expressed optimism about the market's potential during a hearing.

"With Ohio's large, growing market, we believe that iGaming can contribute more than $600 million in annual tax revenue. And that's net new tax revenue for the state." - Cesar Fernandez, Head of Government Relations at FanDuel

On the other side is the black market. Scott Ward of the Sports Betting Alliance pointed out that an estimated $5 billion is currently wagered in Ohio through illegal online providers. Legalization would bring this gray market into a regulated framework and strengthen player protection, as licensed providers are subject to much stricter controls than the roughly two dozen illegal sites currently active in the state.

Background

Player protection remains a key point of contention. While proponents argue that regulation dries up the black market, organizations like the Problem Gambling Network of Ohio warn of the dangers. Derek Longmeier, a representative of the network, emphasized that easy access via smartphones could lead to an increase in gambling addiction. The start of the NFL season is viewed with particular concern, as sports betting often serves as a gateway to online casino gaming. The omission of direct deposit bonuses in the new draft is seen by some experts as a compromise to avoid fueling excessive gambling behavior with artificial incentives.

Regarding the timeline, House Bill 298 sets March 31, 2026, as the latest start date for online casino operations, provided the legislature approves in time. The coming months will show whether the link to land-based locations is enough to break the political deadlock in Columbus. The state faces the challenge of balancing the protection of physical infrastructure with the unstoppable trend toward mobile gaming.

Why it matters for German players

For German players, the situation in Ohio serves as an interesting comparison to domestic regulation under the State Treaty on Gambling 2021 (GlüStV 2021). While Ohio is considering linking bonuses to physical visits, Germany already has very strict rules for advertising and bonus offers in place. German players registered with providers on the GGL whitelist benefit from a clear legal framework that includes a cross-provider deposit limit of 1,000 euros per month via the LUGAS system. Additionally, virtual slot machines have a maximum stake limit of 1 euro per spin and a mandatory five-second pause between spins.

The debate in Ohio shows that protection against gambling addiction remains a central theme of regulation worldwide. In Germany, this is ensured by the OASIS lock system, which actively protects vulnerable players. A model like the one in Ohio, which effectively abolishes or redirects online bonuses, would likely receive mixed reviews in Germany, as the domestic market already strives for fair competition between online providers and land-based casinos without one necessarily subsidizing the other. Nevertheless, the U.S. discussion highlights that unregulated markets pose a high risk to players, making the use of GGL-licensed casinos the only safe option.

What it means for GGL-licensed casinos

German casinos with a GGL license can learn from developments in the U.S. that intertwining online and offline offers can be a forward-looking model. Many German casinos already hold online licenses or cooperate with platforms. Since the German market is already heavily regulated by GlüStV 2021, a complete waiver of bonuses, as discussed in Ohio, is not currently planned as long as strict advertising guidelines are met. However, licensed providers in Germany must continue to compete against the black market, which often lures players with aggressive but illegal bonuses. The transparency and security of a German license remains the strongest argument against offers from Curacao or Malta, which are not legal in Germany.