This regulatory move, driven by the Ohio Casino Control Commission (OCCC), focuses on banning promotions as part of non-gaming consumer transactions and expanding integrity monitoring requirements, reflecting a proactive approach to gambling oversight.
Sports Betting Advertising Crackdowns and Beyond
The OCCC’s latest regulatory meeting brought forth a series of changes, highlighting the state’s commitment to responsible gambling. The new rules specifically target promotions aimed at individuals under 21, the legal gambling age, and those on exclusion lists due to gambling problems. For instance, companies like Fanatics Sportsbook can no longer offer promotions to high-school-aged customers purchasing team merchandise. This rule aims to curb the indirect targeting of underage individuals, ensuring that promotional activities remain within legal and ethical boundaries.
The proposed rules, pending approval from Ohio’s Common-Sense Initiative office and the legislative Joint Committee on Agency Rule Review, are set to return to the OCCC later this year for final approval. This step-by-step process underscores the meticulous approach Ohio is taking to refine its gambling regulations.
In addition to advertising regulations, the OCCC plans to expand the scope of integrity monitoring for the state’s gambling industry. Current regulations require integrity monitors to flag “unusual” or “suspicious” gaming activity. The amended rule, however, mandates that monitors “collect and analyze information to identify integrity concerns,” pushing for a more proactive stance in identifying and addressing potential issues. This move aims to create a safer and more transparent gambling environment, where concerns can be reported anonymously by athletes and flagged by whistleblowers without fear of repercussions.
The regulatory tightening comes in the wake of significant exits from the Ohio sports betting market, including Betway, which ceased operations in Ohio as part of a broader pullback in the US. Betway, a prominent sportsbook, faced profitability concerns, leading its parent company, Super Group, to discontinue its US sports betting business. While Betway remains active in the online casino sector, its exit from the sports betting scene in nine states, including Ohio, reflects the challenging market conditions and the need for sustainable business models.
Progress Already Made
The recent notices from the Ohio Casino Control Commission of violations against BetMGM, Caesars, and DraftKings further illustrate the state’s stringent stance on advertising compliance. Each company faces a potential $150,000 fine for failing to include messages about problem gambling and for misleading advertisements about “free” bets. These fines underscore the OCCC’s commitment to enforcing regulations that protect consumers and promote responsible gambling practices.
DraftKings, already facing a potential $350,000 fine for previous violations involving underage marketing, exemplifies the repeated challenges operators encounter in adhering to state laws. Similarly, Barstool Sportsbook’s potential $250,000 fine for promoting its sportsbook at the University of Toledo highlights the strict regulations against advertising on or near college campuses.
Ohio’s regulatory efforts mirror a broader trend in the US sports betting industry, where states are increasingly prioritizing consumer protection and integrity. The OCCC’s proactive approach to monitoring and regulating the industry sets a precedent for other states to follow, ensuring that the rapid expansion of sports betting does not come at the expense of responsible gambling practices.
