United States
United Kingdom
Summary:
- Ohio regulators fined DraftKings $425,000 for violating a college prop bets ban and allowing unapproved funding methods.
- The company accepted the settlement agreement.
- DraftKings has already adjusted its offerings, refunded non-compliant wagers, and improved its monitoring.
When Ohio’s regulators put an end to college player prop betting earlier in the year, they enforced the ban decisively, despite some lawmakers attempting to reverse it. DraftKings, the gambling giant that offers immersive sports entertainment experiences, has now become particularly aware of the ban.
On Wednesday, the Ohio Casino Control Commission gathered to finalize a settlement involving a hefty $425,000 fine for DraftKings.
“We Will Not Hesitate to Take Administrative Action”
The fine, which was the result of two compliance missteps, underscores Ohio’s commitment to its gambling laws.
DraftKings‘ first violation involved accepting wagers on college player props after the state officially banned these bets starting March 1.
The second violation was more operational, with the company allowing deposits from an unapproved funding source for sports betting accounts. Thomas Stickrath, the Casino Control Commission’s Chair commented
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
DraftKings Was Warned About the Change
DraftKings cooperated with Ohio’s regulators, quickly agreeing to the terms of the settlement.
According to documents, the bookmaker processed bets on college player props from March 14 to March 19, 2024—well after the ban was in place The violation notice sent to DraftKings says
The Commission communicated with the regulated community, including providing an opportunity for comment prior to deciding whether to prohibit NCAA player proposition wagers in Ohio
The notice further emphasized that DraftKings had received ample warning regarding the rule change before the March 1 cut-off.
In the second breach, the company nestled in the heart of Boston enabled customers to fund accounts through cash deposits at non-approved retail locations.
The respective practice violated state regulations. Between January 1, 2023, and March 5, 2024, bettors were allowed to complete 40,985 such deposits, for a total of roughly $2.55 million.
Ohio only allows cash funding via authorized kiosks or cashier stations.
“Committed to Close Collaboration Moving Forward”
The bipartisan regulatory body which is made up of seven Commissioners, an Executive Director, and supporting staff, worked with DraftKings to implement the necessary preventative measures to stop similar incidents from occurring in the future.
The sportsbook successfully reviewed and adjusted its college player prop offerings, making sure to remove all non-compliant bets while refunding affected wagers.
Other measures included updating its monitoring system to flag unauthorized deposit methods in the state, adding monthly compliance checks, and reviewing deposit options before entering new markets.
We value the productive relationships we’ve built with regulators and remain committed to close collaboration moving forward
Ohio’s ban on college player props influenced other states like Louisiana, Maryland, and Vermont to follow suit. New Jersey may also implement similar restrictions.
