Ohio's hopes for legal online casinos and digital lottery games have dimmed for the current legislative session, with top lawmakers citing saturation in the state's gambling market.
House Speaker Matt Huffman said this week that no iGaming or iLottery measures are expected to advance after being removed from the state's budget earlier this year, according to the Statehouse News Bureau.
Key Takeaways
- Ohio lawmakers shelved plans to legalize online casino and lottery games this year.
- Gov. Mike DeWine opposes expanding gambling access, citing addiction concerns.
- The debate reflects wider tensions between state control, federal regulation, and commercial innovation.
Huffman pointed to recent gambling expansions, including legalized sports betting and new retail casinos, as signs the state has reached its limit. Gov. Mike DeWine reinforced that stance, calling 24/7 online gambling "a bad idea" that could worsen addiction issues.
DeWine signed a bill legalizing sports betting in 2023, which has triggered a rise in calls to the state's gambling helpline.
iGaming proposals, such as House Bill 298 and Senate Bill 197, attracted testimony from major gaming operators but faced stiff opposition from religious groups and health organizations. The two bills are stuck as legislators point to slim support for more expansion within this session.
Kalshi sues Ohio over market restrictions
While Ohio's legislative momentum stalls, the state faces a new challenge from Kalshi, a federally regulated event-trading platform. Kalshi sued the Ohio Casino Control Commission (OCCC) and the Attorney General's Office on Oct. 7, alleging the state unlawfully blocked its operations and intimidated potential partners.
Kalshi allows users to trade on real-world outcomes, including sports markets, under the oversight of the Commodity Futures Trading Commission (CFTC). The company argues Ohio's restrictions conflict with federal jurisdiction over event-based contracts.
Court documents reveal Kalshi had been in talks with state regulators for months before receiving a cease-and-desist order in early 2025. Regulators also warned licensed sportsbooks that working with Kalshi could threaten their Ohio licenses, even for out-of-state activities.
OCCC executive director Matthew Schuler wrote on Oct. 6 that Kalshi's interpretation of federal preemption is incorrect, warning that continuing to offer unlicensed gaming would violate state law.
The letter from the commission, submitted as evidence with the court document, highlights the conflict between state authority and federal control over new financial-gaming hybrids.
Virginia considers its own online gambling future
In neighboring Virginia, leaders are already considering whether to approve iGaming as national momentum continues to build. At a Richmond subcommittee hearing, industry officials and public health groups presented differing perspectives on whether allowing online betting would be beneficial to society.
Dave Rebuck, former director of the New Jersey Division of Gaming Enforcement, said Virginia could model its approach on New Jersey's successful regulated market, while Delegate Marcus Simon estimated potential tax revenues of up to $5.3 billion within five years.
However, experts, including Keith Whyte of Safer Gambling Strategies and public health professional Brianne Doura-Schawohl, warned of addiction, financial hardship, and youth exposure to unregulated operators.
The subcommittee plans to hold two additional sessions before the General Assembly reconvenes in January 2026 to discuss casino operations and other gaming-related matters.
