A few weeks ago, the Ohio Casino Control Commission (OCCC ) issued a $250,000 penalty against Barstool Sportsbook. The regulators then issued a much larger fine to DraftKings Sportsbook because it was marketing to minors.
DraftKings Sportsbook released a statement from the OCCC stating that they sent approximately 2,500 ads to individuals under 21 to encourage them to place bets at DraftKings during the launch of sports betting on January 1.
“The Commission was very clear regarding the standards and rules for advertising sports gambling with the industry and we are disappointed by the lack of compliance that we have witnessed despite repeated reminders,” stated OCCC Executive Director Matthew Schuler. While we don’t take administrative actions lightly, DraftKings in this instance warrants the Commission to intervene in order to protect the integrity and fairness of sports gaming.
DraftKings Sportsbook, like Barstool will be able to present its case during a hearing about the fine. In a Massachusetts Gaming Commission meeting, Jay Snowden Penn Entertainment CEO stated that Penn doesn’t plan appeal the fine.
Operators in Ohio have been repeatedly warned by regulators to take care how they market the Buckeye State.
The OCCC informed operators via mail that “we understand mistakes can happen but it’s not a mistake when they appear to be this consistent.” The OCCC stressed the importance of clear, conspicuous messaging about responsible gambling. It should not be hidden in fine print. Operators are cautioned by regulators to not promise “risk-free” or “free bet”, even though there is no regulation on inducements.
DraftKings ran into trouble with regulators before, even in Ontario where inducement marketing is banned. DraftKings advertised a boost in odds on television and through social media last May. The company was therefore fined 100,000.
Despite the fact that the sportsbook faces a fine, the book was still opened in Ohio on Sunday.
