BetMGM, Caesars and DraftKings targeted in new Ohio regulatory action
Sportsbook operators set for fines totaling $450,000 as Buckeye State regulators continue tough line on advertising laws
BetMGM, Caesars and DraftKings are potentially facing regulatory fines of $150,000 each for violations of Ohio gambling laws, the Ohio Casino Control Commission (OCCC) has revealed.
Details of the regulatory actions were released on Thursday, with the OCCC confirming that all three had broken two Ohio statutes, the first of which was not including messaging about problem gambling in their respective advertising.
Secondly, the trio all used the terms “free” or “risk-free” in their advertising surrounding sports betting.
Under Ohio laws, all sports betting advertising must contain clear messaging geared around preventing problem gambling as well as a phone number that people can access for treatment.
Operators are also not allowed to call promotions “free” or “risk-free” when bettors are required to bet their own money to obtain the promotional incentive.
The operators have the opportunity to appeal the fines at a full hearing of the OCCC taking place at a later date.
Reiterating this tough line from the OCCC, the regulator’s executive director Matt Schuler cited several instances of advertising breaches made by operators.
“The sports gaming industry has received multiple reminders of the rules and standards for advertising and promotions, yet continue to disregard Ohio law,” Schuler said.
“These repeated violations leave the commission no choice but to pursue administrative action to bring operators into compliance. The commission takes responsible gambling seriously – and expects the industry to value the same,” he added.
In respect of DraftKings, the new action marks the second time the operator has been taken to task over its marketing, with a $350,000 potential fine mooted earlier this week, just days after the launch of the Ohio sports betting market on January 1.
Fellow operator Barstool Sports was issued with a $250,000 fine in December after its Penn Sports Interactive affiliate was found to have breached two counts of Ohio gambling law relating to advertising to underage individuals.
Speaking about the need for a tough line to Ohio-based news site Cleveland.com, Ohio Governor Mike DeWine alluded to the high level of scrutiny of operators launching in the state.
“The companies that are doing the massive advertising need to be aware that they’re being looked at very closely by the governor and the Casino Control Commission in regard to statements that they are making,” DeWine said.
“We believe that at least on several occasions they’ve already crossed the line. My message to them is that this will not be tolerated in the State of Ohio,” he added.