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Proposed Ohio fines against sportsbook operators now exceed $1 million

Regulator says industry 'continues to disregard Ohio law'
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Posted at 4:03 PM, Jan 05, 2023
and last updated 2023-01-05 16:03:34-05

CINCINNATI — The Ohio Casino Control Commission on Thursday proposed fines totaling $450,000 against three sportsbook operators for alleged violations of Ohio rules pertaining to advertising and promotions.

That brings the total to more than $1 million sought by regulators in five notices of violation issued in the last month.

“The sports gaming industry has received multiple reminders of the rules and standards for advertising and promotions, yet continues to disregard Ohio law. These repeated violations leave the commission no choice but to pursue administrative action to bring operators into compliance,” said Executive Director Matthew Schuler in a press release. “The commission takes responsible gambling seriously – and expects the industry to value the same.”

In the latest actions, the commission alleged DraftKings, BetMGM and Caesars – or their affiliate marketers – violated Ohio law by running ads that failed to “clearly and conspicuously contain a message designed to prevent problem gambling as well as a helpline number to help access resources.”

The companies also “advertised promotions or bonuses described as ‘free’ or ‘risk-free’ when patrons were required to incur a loss or risk their own money to obtain the promotion,” according to the commission.

This is the second time DraftKings received a notice of violation in Ohio. On Dec. 30, the commission proposed a $350,000 fine against the company for mailing “approximately 2,500 advertisements directly addressed to individuals under the age of 21.”

Barstool Sportsbook parent Penn Sports Interactive LLC received a notice of violation Dec. 9 in which the commission proposed a $250,000 fine. It alleged Barstool violated Ohio law by hosting “the Barstool College Football Show on the University of Toledo’s campus, targeting persons under the age of twenty-one, encouraging the college audience to pre-register for the Barstool Sportsbook.”

All of the companies have the right to contest the alleged violations in a hearing, with fine amounts ultimately determined in a public vote by the commission.

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