Sports betting has been legal in Ohio for less than two weeks and already three sportsbooks might be in trouble. The Ohio Casino Control Commission (OCCC) reported that BetMGM, Caesars, and DraftKings are being investigated for possibly breaking advertising rules.
If found in violation, the three sportsbooks could each face a $150,000 fine. The accusations against the three revolve around not having a message about problem gambling and advertising free or risk-free bets.
Before the possible infractions were announced, Ohio Governor Mike DeWine said sports betting companies are being “looked at very closely.”
Matt Schuler, executive director of the OCCC told, Cleveland.com that the violations were egregious and all sportsbook operators had been warned at a meeting on December 30.
“The sports gaming industry has received multiple reminders of the rules and standards for advertising and promotions, yet continues 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.”
A representative from DraftKings told Cleveland.com that it is “committed to the highest standards of consumer protections and responsible gaming.”
Though it is permitted in some states, Ohio forbids companies from calling their promotions “free” or “risk-free” bets when a customer’s money is at risk.
Also, a line in all advertisements must contain a line about preventing problem gambling with a phone number for people to call if they need help.
This is not the first time DraftKings has run afoul of the OCCC. They received notice that they had been found in violation of mailing approximately 2,500 ads to people under the age of 21. For sending correspondence to underage gamblers, the commission was seeking a $350,000 fine.
Barstool Sports, which is owned by Penn Sports Interactive, was informed even before sports betting became legal on January 1, 2023, that it was receiving a notice of a violation. That stemmed from an event the company held at the University of Toledo. Advertising on or near college campuses is against the rules, and could warrant a $250,000 fine.
DeWine said to reporters that violations by sportsbooks will be dealt with swiftly.
“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.”
In addition to DeWine, the OCCC itself is beginning to grow weary of the ticks and tacks.
“We have been very disappointed that for all of the talk that the industry has about wanting to ensure that only those over the age of 21 can place a wager, and that they’re targeting folks that they shouldn’t, their actions right now don’t seem to be really matching up with the words,” Jessica Franks, commission spokesperson, told NBC4.
“The commission takes this really seriously. We would like the industry to do the same,” Franks added.
All four were given the choice of a hearing or a settlement. Penn Entertainment already requested a hearing, Franks said.
Any money from resulting fines will pour into the sports gaming revenue fund — most of which is allocated toward education. Two percent goes toward problem gambling resources.
