DraftKings Hit with Potential $350k Fine Ahead of Ohio Sports Betting Launch

Company sent out promotional emails to 2,500 people under the age of 21

by - Saturday, December 31st, 2022 12:44

USA gambling fines

The Ohio Casino Control Commission has announced that it is taking administrative action against DraftKings sportsbook, accusing the company of sending promotional emails to 2,500 people under the age of 21.

According to a statement released by the commission, DraftKings allegedly violated Ohio sports betting advertising rules by mailing promotional material for its sports betting app to approximately 150,000 people. Of that figure, around 2,500 were under the age of 21, the minimum legal age for sports betting in the state.

Matt Schuler, the executive director of the Ohio Casino Control Commission, said in a prepared statement:

“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.”

If found in violation, DraftKings could face a fine of $350,000. The company will have the opportunity to request a hearing, and no fine will be issued until it has received due process. In addition to the potential fine, the commission may also require DraftKings to put in place new procedures to ensure that marketing materials are not directed at individuals whose age has not been verified.

Earlier in December, the commission also fined Barstool Sports for promoting its sportsbook at a university campus event.

2022 global casino-industry fines reached $264M – up 443% over 2021.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.