Ohio sports betting is less than a month old and there have been some hefty fines meted out by the Ohio Casino Control Commission (OCCC).
Caesars Entertainment Corp., MGM Resorts International and DraftKings face fines of $150,000 each for failing to prominently display responsible gaming messages in their ads in Ohio, said Jessica Franks, director of communications for the OCCC.
The companies also are alleged to have used the terms “free” and “risk-free” in promotional materials designed to generate business in violation of state law. Companies commonly promote risk-free bets as a means of encouraging players to make wagers. Ohio law requires companies to tag their ads with messages encouraging compulsive gamblers to seek help if they’re tempted to bet beyond their means.
But Franks said the advertising violations were the only blemish in the successful startup of Ohio sports betting, which began January 1.
Caesars waived a hearing and came before an OCCC meeting on January 18. The company acknowledged the commission’s two concerns: a lack of responsible gaming messaging and use of the word “free” or “risk-free” regarding a promotion.
Eric Hession, president of sports and online gaming at Caesars, said the company terminated its relationship with the affiliate nationwide and alerted its other affiliates to pay close attention. The OCCC declined a request by Legal Sports Report to identify the affiliate.
Ending the relationship is “the sort of model that we want to see when things like this occur,” Chairwoman June Taylor told LSR. Caesars agreed to pay the $150,000 fine and conduct additional staff-level training to rectify the violation.
MGM and DraftKings were given 30 days to settle or challenge the allegations. The commission is expected to resolve the matter at its next scheduled meeting, February 15.
“If an ad says a bet is ‘free’ or ‘risk-free,’ it truly has to be free to the patron,” Franks said. “They have to be truly free to the customer.”
Ohio launched sports betting with 13 brick-and-mortar sportsbooks, 16 mobile apps and 700 kiosks at bars and taverns. Franks said the advertising rules were well explained weeks before the launch, and after commissioners saw early signs of potential violations, they issued a guide to licensees that they hoped would stop any future problems.
Franks said there have been other startup snags. Rules clearly state companies cannot advertise on college campuses or target bettors under the legal betting age of 21.
Regulators discovered that Penn Entertainment-affiliated Barstool Sports had a football-related remote radio broadcast from a campus facility at the University of Toledo. The company faces a $250,000 fine for the alleged violation.
Regulators also discovered that DraftKings issued mailers promoting sports betting to underage people—a $350,000 fine for that instance also is pending. If approved, that fine would be the largest in Ohio gaming history.
Meanwhile, restaurant owner Erik Richman has gone almost a month without the sports betting kiosk he hopes will help out the business fortunes of Varsity Sports Bar and Grill in Anderson Township, Ohio. But he’s still waiting for delivery from Intralot…
Intralot?
Doesn’t Intralot run the Washington D.C. sports betting operations, the one that bypassed competition and was awarded the contract? The one that has been a boondoggle for the Nation’s capital.
Richman isn’t alone. A lot of bar and restaurant owners are doing a slow burn over the slow rollout. And most of them have issues with Intralot, according to WKRC-TV.
“It’s frustrating because we did advertise for months leading up to this, saying we were going to have this,” Richman said. “Not only that, they’re advertising it on their website saying we are one of the locations, and we still can’t do it. So, we have people coming in here and get disappointed about it.”
And it comes as the Cincinnati Bengals are making a historic run in the NFL playoffs.
Ohio licensed some 1,100 different businesses earmarked for sports gambling kiosks. The Lottery Commission reports that of those 1,100 licenses, about 780 are active, but not all have kiosks yet and are relying on phone apps. A place like Kitty’s has been in operation since day one. But they went with a different vendor not named Intralot.
Richman failed to get an answer when he called the company.
“It is a money maker when people are spending money in those machines, but it also brings people in here and then they start eating and drinking so it’s a win-win for me to have it here,” Richman told WKRC. “Not only that, with the Bengals doing so well right now, this is the time that I really need it and we can’t use it.”
It is still possible to bet using the app on your phone. But you can only collect $599 in winnings at the bar, with the remainder available at the lottery office.
“Intralot’s software continues to be tested to meet the quality control standards required to allow the program to be uploaded and sent live to our machines. We are hopeful that Intralot will begin a phased deployment in the near future.” Danielle Frizzi-Babb, the Ohio lottery communications director, said in a statement.
