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At least four companies were notified of violations. A license may be denied after potential illegal gambling activity.
COLUMBUS, OH — As the calendar flipped into the new year in Ohio, 29 different entities launched sports betting businesses in the state.
“Overall, the launch was a success,” said Jessica Franks, communications director for the Ohio Casino Commission.
But the launch had at least a few issues that could cost some companies a fine.
“We provided clear guidance twice in the week prior to launch, including examples of issues we saw and how we needed to fix them. The fact that they are doing so is very disappointing to the Commission and why should action be taken against businesses to force some to comply,” she said.
Notices of violations have been sent to several companies. BetMGM, DraftKings, and Caesers accused of conducting illegal advertising or promotions by including the words “free” or “no risk” or by failing to properly display the required problematic gambling message it was done. Each company faces fines of up to $150,000.
Penn Sports Interactive and DraftKings were accused of targeting college campus areas, advertising to people under the age of 21, or both. DraftKings faces fines of up to $350,000 and Penn Sports Interactive faces a fine of $250,000 for this offense.
PlayUp, on the other hand, could have its license denied before it is allowed to operate because the commission has uncovered information about possible illegal gambling activities.
These notices were sent after the information was collected, either by investigating staff or because of consumer complaints, Franks said.
As for the process from here, Franks said companies that receive notice have 30 days to request a hearing. In that case, the commission would be represented by the Office of the Ohio Attorney General, and companies could hire their own attorneys. That hearing works like a mini-trial where lawyers can present evidence and call witnesses. An independent hearing examiner oversees the proceedings and issues reports and recommendations that the Commission can approve or amend. Final action will be taken at a public committee meeting. If companies choose not to request a public hearing, they can try to reach a settlement agreement that could end in potential fines.
“The Commission says that when we say something, we mean something,” Franks said. We need their actions to match their words too. If we take action against a company to obtain its compliance, we will.”
10TV has reached out to each company mentioned in this article.
DraftKings responded with the following statement:
“DraftKings is committed to the highest standards of consumer protection and responsible gaming. We do not comment on pending regulatory issues.”
Penn Sports Interactive has submitted the following information:
As it relates to the issue of a breach notice by the Ohio Casino Regulatory Commission to Penn Sports Interactive, a wholly owned subsidiary of PENN Entertainment, there is an opportunity to address this matter through the Ohio Casino Regulatory Commission’s regulatory process. Looking forward to it. What happened was that Barstool Sports held his one of the college football shows on the University of Toledo campus. Although there is a live element, 90% of his viewers watch his show on YouTube and about 86% of those who watch his show online are over the age of 25. I had to go online with regulators before the college football show to see a message broadcast that the Barstool Sportsbook was set to go live on January 1. I considered the advertisement of Again, it was our fault for not clarifying our activities with regulators in the first place.
Moving forward, PENN and Barstool Sports have implemented a new policy for the 2023 season. Due to this, the Barstool Sports College Football Show requires live viewers to show proof of being over the age of 21.
Nothing is more important to PENN than our gaming licenses and the positive, honest and transparent relationships we maintain with our regulators. We are also deeply committed to a culture of responsible gaming and compliance for personal and professional reasons.
The Barstool Sportsbook recently passed the Responsible Gambling Council’s (“RGC”) RG Check. For over 35 years, RGC has been a leader in problem gambling prevention in Canada and around the world. Penn Interactive, the direct parent company of PENN Sports Interactive, became one of the first US operators to voluntarily go through RGC’s comprehensive RG Check certification process. In particular, he said RGC said, “Penn Interactive’s holistic approach to RG is holistic. A strong commitment to harm reduction and prevention contributes to the quality of the programme.” I found Potentially vulnerable players, including minors and those registered for exclusion, will be properly considered. “
PlayUp also issued the following statement:
“PlayUp has received a Commission Notice of Opportunity for Hearing and is reviewing its terms with attorneys. PlayUp has always believed that it operates within the limits of Ohio law. In addition, PlayUp undertakes to comply with all laws of the State of Ohio.”
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