Ohio Regulator Continues Sports-Betting Advertising Vigilance

January 3, 2023
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The first bets were accepted in Ohio just seconds after 2022 became 2023 early on Sunday morning, but in the lead-up to launch, state regulators expressed their continued frustration with the advertising tactics of sports-betting operators and said they are already planning a six-figure fine for DraftKings over marketing violations.

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The first bets were accepted in Ohio just seconds after 2022 became 2023 early on Sunday morning, but in the lead-up to launch, state regulators expressed their continued frustration with the advertising tactics of sports-betting operators and said they are already planning a six-figure fine for DraftKings over marketing violations.

One week after sending a letter to all stakeholders reminding them of the state’s regulations on advertising sports betting, the Ohio Casino Control Commission proposed a $350,000 fine for DraftKings on Friday (December 30), accusing the company of sending approximately 25,000 advertising mailers to people under the age of 21.

Those communications were a violation of state law and regulations that prohibit targeting underage players through sports wagering advertising.

“The commission has been very clear about the rules and standards for sports gaming advertising with the industry and are disappointed with the lack of compliance we have seen despite reminders,” said Matt Schuler, the commission’s executive director.

“While we do not take administrative action lightly, DraftKings’ conduct in this case warrants the commission’s intervention to ensure the integrity of sports gaming.”

The proposed fine marks the second enforcement action taken by the commission over sports wagering marketing, following a $250,000 proposed fine against Penn Entertainment for advertising the upcoming launch of sports betting during a Barstool College Football Show broadcast at the campus of the University of Toledo, violating regulations against targeting advertising toward college campuses.

The two Ohio fines would be the two largest levied by a sports-betting regulator outside Nevada since the demise of the Professional and Amateur Sports Protection Act (PASPA) in 2018, with both being levied before a single bet had even been taken in the state.

Nevada gaming regulators fined now defunct CG Technology, formerly known as Cantor Gaming, more than $7.2m between 2014 and 2018 to settle several complaints, including accepting wagers from out-of-state residents.

In its letter to stakeholders on December 23, the Ohio commission called the advertising actions of the industry at large “concerning” and said operators had violated three core tenets of what would be permitted in sports-betting advertising as they promoted their brands to Ohioans ahead of the market's launch.

Those tenets include placing a responsible gambling message in advertising, making that message “conspicuous”, and not targeting individuals under age 21.

“These tenets comport with a stance the industry repeats itself over and over again; namely, that the industry does not want to have people participating in gaming if they are underage or have a gambling problem,” the letter read.

“As such, the commission is disappointed to be seeing apparent consistent violations. As we stated in June and as has been published on our website since then, failure to meet the advertising standards will result in administrative action.”

The commission criticized operators for the placement of their responsible gaming messaging, acknowledging that while multi-jurisdictional advertising with different helpline numbers can be difficult, even Ohio-specific advertising lacked the proper messaging.

“An advertisement should not have to be zoomed in on, slowed down, or the volume turned up for an individual to see or hear a helpline number,” the letter read. “Our expectation is that the helpline number be at least nearly as clear, legible, and audible as the advertisement, whether advertised directly by the operator or through an affiliate marketer.

“To be clear, conspicuous certainly is not having the responsible gambling tagline in the smallest font, lowest voice, or fastest speech in the advertisement.”

More than a dozen online sportsbook operators have launched in Ohio since the first bets were permitted at 12:01am Sunday, while several retail locations throughout the state are also now operational.

Ohio’s sports-betting law permits a wide variety of stakeholders to participate in sports betting, including casinos, racetracks and professional sports facilities that can obtain both licenses to offer retail betting and online betting through up to two skins.

In addition, the state features a program through the Ohio Lottery that permits hundreds of retail locations, including restaurants and bars, to offer sports wagering kiosks on-site.

According to the Ohio Lottery, 773 locations were designated to launch as of January 1.

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