Ohio clamps down on rule-breaking sportsbooks

Ohio’s sports betting industry is in fact off to a great start, as confirmed by GeoComply last week. And yet, there are some issues to look into. The state’s Casino Control Commission has been looking into infringements by a number of licensed sportsbooks in the state, which may have breached advertisement rules, The Cleveland reported.

The commission is investigating potential infringements by DraftKings, Caesars, and BetMGM Sportsbooks, with DraftKings already wrapped once earlier. The same breaches were discovered across all companies’ offers. According to the commission, the sportsbooks were promoting "free" and "risk-free" wagers, which was misleading.

Another glaring mistake was the lack of sufficient responsible gambling and problem gambling messaging as part of the company’s products and offers, the regulator claims. The news that sportsbooks may not be holding their end of the bargain has already prompted the state’s governor, Mike DeWine, to remind the companies that any such behavior will be examined very closely.

J.B. Bickerstaff, the Cleveland Cavaliers head coach, said that sports betting is in itself a challenge, as it requires people to be educated about its potential downsides. According to Casino Control Commission’s Executive Director, Matt Schuler, the industry has received multiple complaints and reminders but has continued to disregard the necessary regulatory standards.

He said that the regulator is serious about responsible gambling, and so should industry stakeholders, especially the businesses that are licensed to offer sports bets. A closer look at the issues hinted at by the commission is easily understood as well.

For one, sports betting advertisements must always promote in a clear and intelligible manner that the activity is in itself dangerous. There should be resources within the advertisement that lead to problem gambling helpline and contact information so that people can reach out if they are struggling to control their habits.

Another infringement has to do with the way the promotions were worded. Ohio is against sportsbooks promoting their bonuses as "free" or "risk-free" as this, the regulator argues, is simply not true. Players still need to risk their own money to activate a "risk-free" clause in a bonus, for example.

Each of the sportsbooks mentioned may have to pay up to $150,000, although, in a previous report, the commission said that DraftKings alone could face up to $350,000. DraftKings allegedly advertised gambling products to individuals who are not of the legal age of 21. However, the commission doesn’t want to act ham-fistedly and has said that it would seek to first reach out to DraftKings and hear its side of the story.

The same will most likely be repeated in the new cases. Meanwhile, Ohio’s gambling watchdog has already had to deal with another sportsbook, Barstool Sportsbook, which could face a fine of up to $250,000 over its promotion of gambling at the University of Toledo’s campus. Ohio is off to a good start in terms of sports betting handle, but operators are definitely not fully holding their end of the bargain.