It was revealed on Friday 30th of December that the Ohio Casino Control Commission has plans to issue a hefty fine to DraftKings. This news comes following the revelation that DraftKings, a popular betting provider and operator, had allegedly distributed promotional materials advertising gambling to users aged under twenty-one. Tomorrow, on the 1st of January, legal sports betting markets are set to open in the state, but it already seems as though some operators are stepping outside of their boundaries.
As the US sports betting markets open up, regulators are hot on the heels of any wrongdoing. For instance, just two weeks ago, the Ohio Casino Control Commission issued a $250,000 fine to Penn Sports Interactive. This punitive action came after the operator advertised its online sportsbook at a college football show that took place in Toledo.
Follow The Rules or Face The Fines
Reportedly, DraftKings ‘directly’ contacted more than 2,500 people that were under the age of twenty-one, advertising their sports betting practices and services. As per Ohio state law, the legal minimum age for betting is twenty-one, putting DraftKings in a very dangerous position. As the United States continues to open its doors to online and in-person sports betting, more regulations are being rolled out every day – but sometimes, it just isn’t enough.
In a statement, the Executive Director of the Ohio Casino Control Commission, Matt Schuler, said:
‘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. 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.’
While the $350,000 fine may be a drop in the bucket for DraftKings, valued at almost $10 billion in December, it still marks a hefty scar against the operator’s name. Every so often, there are periodic reviews that determine the longevity of an operator offering its services in a particular state. There may be plenty of state governments passing legislation to open their doors to sports betting practices, but it doesn’t mean that deals can’t be liquidated, should operators ‘misbehave’.
There’s steady growth across the United States at present when it comes to esports betting. There are high expectations for the online sports betting industry to deliver record figures both this year and next, with exponential growth occurring as time goes on. However, not every state is open to the concept of sports betting. For instance, weeks ago, California residents effectively shut down propositions that would have been sports betting legalised in the state.
There’s still quite a long road ahead, but it’s definitely broadening.