Ohio regulator prohibits sportsbooks offering “unrelated consumer transactions”
Buckeye State regulator clamps down on promotional strategy following earlier Fanatics scrutiny
Officials from the Ohio Casino Control Commission (OCCC) have committed to stopping licensed sports betting operators from offering “unrelated consumer transactions” as part of their sportsbook promotional strategy in the state.
Writing to stakeholders, OCCC regulators called on operators to show that they do not or have ceased “offering any directed consumer promotions, based on non-gaming consumer transactions” by 5pm on July 7.
In the letter, the OCCC laid out its concerns that the usage of such transactions by operators would “normalize” gambling, potentially exposing at-risk groups to it.
“These promotions are targeted to specific consumers based upon their consumer purchase with an affiliate company,” the letter states.
“These types of promotions target these consumers with a sports gaming promotion inducement specifically because of their unrelated consumer transaction.
“These types of promotions include offers made to a consumer following the consumer transaction on the affiliate marketer’s website or application or made following the consumer transaction to the consumer’s e-mail address, by mail, or other direct communication.”
“The Commission is cognizant that research demonstrates that the normalization of gambling increases the risk for problem gambling, especially among young people,” the OCCC concludes.
The letter follows the discontinuation of a marketing campaign by Fanatics Betting & Gaming in the Buckeye State, in which it offered free bets in exchange for the purchase of sports merchandise.
Under the promotion, individuals purchasing items on the Fanatics.com site were offered bonus bets of an equivalent amount, of up to $500, on the proviso they became customers of the Fanatics sportsbook.
For example, a $30 purchase of merchandise would receive $30 in bonus bets, limited to one bet per new Fanatics sportsbook account. In compliance with generally accepted regulations, Fanatics included problem gambling links and terms and conditions in its marketing language on the promotion.
The promotion was discontinued by Fanatics following action by the OCCC and criticism from individuals on Twitter, after it was found to have violated Ohio gambling rules.