DraftKings hit with $425K fine in Ohio

DraftKings has been hit with a six-number fine in the Buckeye State after the Ohio Casino Control Commission found the regulated sportsbook in breach of local gambling laws, resulting in a $425,000 financial penalty.

According to the regulator, DraftKings has been found guilty of accepting "improper bets," and further authorizing the topping-up of player accounts from unapproved payment methods.

DraftKings hit with $425K penalty by Ohio’s gambling regulator

Based on OCCC’s public statement, DraftKings accepted prohibited college player prop bets in March, resulting in enforcement action.

According to the commission, DraftKings had no legal right to offer the bets in question, and it similarly said that it had approved the depositing of cash into player accounts through an untrusted payment method.

In a statement, OCCC’s Chairman, Thomas J. Stickrath, said that the regulator was committed to ensuring that all sportsbooks in the state operate to the letter of the law.

"The Commission is steadfast in its efforts to ensure Ohio’s sportsbooks are in compliance with all gaming‐related laws, and we will not hesitate to take administrative action, when necessary, in order to maintain the integrity of gaming and to protect Ohio’s citizens," Stickrath added.

Going into the specifics, DraftKings allegedly accepted 40,985 cash deposits to fund player accounts at non-gaming retail locations, which the OCCC said was not authorized by the regulator.

For its part, DraftKings has issued a statement through a spokesperson, arguing that the company is fully committed to upholding regulatory standards in each jurisdiction it operates in, and is determined to collaborate closely with regulators to ensure that its offer meets the legal bar.

Player prop bets are a highly contentious issue. OCCC’s Executive Director Matthew Schuler decided to move forward with a broader attempt to safeguard the integrity of college sports by excluding college player props from the types of wagers legally accepted in Ohio.

College prop bets need to go to protect player-athletes

Schuler was acting at the request of Ohio Governor Mike DeWine and NCAA President Charlie Baker who have called for the measure in an attempt to prevent student-athletes from becoming a victim of unsavory practices.

Players who fail to perform but have been bet on are also more likely to be victims of online harassment because disgruntled punters would start looking up the athletes who "failed" to secure their wager and start insulting or threatening them on the Internet.

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