Ohio has fined DraftKings $425,000 for two compliance violations, including accepting banned college player prop bets earlier this year.
At a meeting on Nov. 20, the Ohio Casino Control Commission discussed and settled the matter. DraftKings agreed to pay the penalty for the violations, the other of which was allowing an unapproved funding source for sports wagering accounts.
In documentation provided to SBC Americas, the Commission wrote that it discovered that the operator had offered prop wagers on student athletes’ performances after the state’s ban on that type of wager came into effect on March 1 of this year. The bets were taken between March 14 and March 19.
In addition, DraftKings allowed players to fund their accounts through cash deposits at unapproved “non-gaming retail locations.” The Commission’s statement said that a total of 40,985 of those deposits were made, totaling more than $2.5 million, between January 2023 and March 2024.
DraftKings knew the rules
The Commission stressed that DraftKings was fully aware of the rules regarding college prop bets and approved funding methods at the time of the violations, and the errant type of cash deposit method utilized by DraftKings in Ohio has never been allowed in the state.
“The Commission is steadfast in its efforts to ensure Ohio’s sportsbooks are in compliance with all gaming‐related laws, and we will not hesitate to take administrative action when necessary in order to maintain the integrity of gaming and to protect Ohio’s citizens,” said the Commission’s Chair Thomas J. Stickrath.
The Commission acknowledged that, after it notified DraftKings of the violations, the operator disabled the relevant prop markets and voided all non-winning wagers, refunding their accounts. It also disabled the relevant deposit method, and added new review and testing functions to ensure there will be no repeat.
As well paying the financial penalty, DraftKings is also required to ensure that its personnel are trained on all laws, policies and procedures and Commission‐approved internal controls relevant to each employee’s individual function, as relates to the violations.
“DraftKings is dedicated to upholding the regulatory standards set by each state and jurisdiction in which we operate,” a DraftKings spokesperson told SBC Americas. “We value the productive relationships we’ve built with regulators and remain committed to close collaboration moving forward.”
