Ohio Takes Action Against Sports Betting Advertising Violations
In a significant move to regulate the burgeoning sports betting industry within its borders, Ohio has recently taken decisive action against two major players in the realm of sports wagering. The Ohio Casino Control Commission has announced the conclusion of settlements with Barstool and DraftKings, two prominent sportsbooks, over breaches in the state’s strict advertising guidelines. This development underscores Ohio’s firm stance on maintaining the integrity and responsible promotion of sports betting activities.
Barstool Sports Faces $250,000 Fine
The first case brought before the commission involved an advertisement by Barstool Sports that appeared on the Barstool College Football Show. This particular advertisement was found to contravene Ohio’s regulations that prohibit targeting sportsbook marketing efforts towards individuals under the age of 21. Representatives from Penn Entertainment, which recently completed a $387 million acquisition of Barstool Sports, were present to address the allegations. Chris Soriano, Chief Compliance Officer, and Harper Ko, Executive Vice President and Chief Legal Officer, expressed their regrets over the oversight.
Commission Vice Chair John Steinhauer emphasized the commission’s commitment to responsible gaming and advertising, while also acknowledging Barstool Sports’ reputable operations within Ohio. The unanimous approval of a settlement agreement, which includes a $250,000 fine along with corrective measures, reflects the seriousness with which Ohio views these infractions.
DraftKings’ Double Violation and $500,000 Fine
The Ohio Casino Control Commission’s scrutiny extended to DraftKings for two separate advertising violations. The sportsbook was criticized for its misleading use of terms like “free” or “risk-free” in promotions, as well as for directing marketing materials toward underage individuals in Ohio. Jacob List, Senior Director of Regulatory Operations, and Stephanie Sherman, Chief Marketing Officer, represented DraftKings and issued apologies for these breaches.
As part of their commitment to rectify these missteps, DraftKings pledged to implement mandatory employee training focused on responsible gaming disclaimers and the appropriate use of promotional language. Despite these violations, Commissioner Chair June Taylor recognized DraftKings’ efforts in promoting diversity in advertising, highlighting the company’s collaboration with Kevin Hart and its impact across various demographics. The commission ultimately approved a settlement agreement imposing a $500,000 fine on DraftKings, along with a set of remedial actions to prevent future infractions.
Continued Operations in Ohio
Despite the fines and the need for corrective measures, both Barstool Sports and DraftKings will maintain their presence in the Ohio market, continuing to offer their sports betting apps to residents. This decision reflects a balanced approach by the Ohio Casino Control Commission, aiming to enforce regulations while allowing companies the opportunity to amend their practices and contribute positively to the state’s sports betting landscape.
The actions taken by Ohio against Barstool and DraftKings serve as a potent reminder of the importance of adhering to advertising regulations within the sports betting industry. As this sector continues to grow, both in Ohio and nationwide, regulatory bodies are making it clear that responsible marketing practices are not just optional but mandatory. This ensures a safe and fair environment for all participants, particularly those vulnerable to the allure of gambling.
As we move forward, the oversight of sports betting in Ohio will likely serve as a model for other states navigating the complexities of regulating this dynamic industry. The Ohio Casino Control Commission’s recent enforcement actions highlight the state’s commitment to upholding high standards, ensuring that sports betting remains a responsible and enjoyable pastime for all.
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