Three days into Ohio’s new regulated market for online sports betting, Republican Governor Mike DeWine expressed his frustration with operators so far, accusing some of having “already crossed the line” and broken state law governing advertising by the gaming industry.
DeWine’s irritation mirrors that of the state regulator in the wake of the Ohio Casino Control Commission (OCCC) issuing separate fines to Ohio sports betting apps Barstool Sportsbook in mid-December and DraftKings on Friday for violating restrictions on advertising. The fines totaled $600,000.
According to a report by the Cleveland Plain Dealer, the governor told reporters Tuesday that he had shared his concerns with the OCCC that operators had already run afoul of state law.
“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 OCCC 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.”
The “occasions” in question were not clear, and the governor declined to explain what he meant. But the Plain Dealer said DeWine specifically mentioned the $350,000 fine that the OCCC issued DraftKings Sportsbook OH on Friday, December 30 — two days before the market launched on New Year’s Day.
OCCC fined DraftKings for mailing about 2,500 advertisements to people under the age of 21 during the month of November. The ads were encouraging a DraftKings sportsbook download ahead of the market launching on January 1.
Meanwhile, Barstool was fined $250,000 by the regulator in mid-December for violating the state’s laws banning advertising on or near a college campus, and for targeting people under the age of 21.
The incident that triggered the fine against Barstool occurred on November 15, when the operator hosted an episode of its Barstool College Football Show at the University of Toledo. OCCC said Barstool used the show to promote its sportsbook and encourage attendees to pre-register for the market’s launch.
Barstool is also under scrutiny by Massachusetts regulators for the incident at the University of Toledo and another at the University of Tennessee in September.
DeWine also told the newspaper that there is “a pretty clear line” that operators can’t use promos offering free betting credits. State law prohibits sportsbooks from using the terms “free” or “risk-free” in their advertising.
“They must be very careful, candidly, in regard to the claim of 'free money and free gaming,’” the governor said. “When you look at the fine print, or try to figure out what it really means, it doesn’t mean what certainly is being implied by the TV advertising.”
Regulator: Industry Compliance “Disappointing”
OCCC Director of Communications Jessica Franks told US Gaming Review that the regulator “shares the governor’s concerns regarding the conduct of sports gaming operators when it comes to advertising and promotions.
“The industry has been aware of the Commission’s rules and state law in these areas for months, and has already taken action against Penn Sports Interactive and DraftKings for violations of these provisions ahead of the launch of sports gaming. The fact the Commission needed to issue explicit guidance on advertising to operators twice in the week prior to launch — on December 23 and 29 — is disappointing.”
Franks added that while the OCCC’s goal is to have operators comply with state law, “the Commission remains vigilant in monitoring sports gaming ads and promotions and will not hesitate to take administrative action for repeated violations.”
DraftKings Broke Rules in Ontario Early, Too
DraftKings had a tough time when it launched mobile sports betting in neighboring Ontario in May 2022.
Provincial regulators alleged that DraftKings’ Canadian subsidiary had advertised broad gambling inducements, including boosted 2:1 odds, through a television and social media campaign. The violations occurred on May 19, the day after DraftKings launched in Ontario.
Boston-based DraftKings wasn’t the only one to run afoul of the rules early in Ontario. BetMGM Ontario and PointsBet Canada were issued fines for similar infractions in early May.
