Ohio Faces Backlash Over Proposed Sports Betting Restrictions

The Ohio Casino Control Commission (OCCC) recently unveiled a proposal to limit the connection between sportsbooks’ promotional offers and non-gambling transactions. 

Fanatics Sparks Regulatory Debate in Ohio Over Sportsbook Bonus Bets

The commission’s draft regulations made public on November 9, aim to address concerns raised during an exchange between the OCCC and Fanatics in May. At that time, Fanatics halted a bonus bet offer on its sportsbook platform linked to purchases from the company’s retail arm. 

The decision was prompted by worries that the promotion could reach individuals below the legal betting age of 21 and those enrolled in Ohio’s Voluntary Exclusion Program, designed for individuals with acknowledged gambling issues who voluntarily restrict their access to gambling.

According to the proposed guidelines, sports gaming operators must refrain from offering promotional bonuses tied to non-gaming consumer transactions unless the recipients are age-verified and not on the voluntary exclusion list. The guidelines emphasize the importance of avoiding promotions targeting individuals under the age of 21, those ineligible for sports gaming, individuals with gambling problems, or other vulnerable individuals.

Ohio, home to 20 online sports betting sites, could see a substantial impact on operators offering consumer purchase tie-ins, though not all platforms engage in such ventures. 

Industry Giants FanDuel and Fanatics Challenge Ohio’s Proposed Rules

FanDuel and Fanatics, however, were the only operators to submit comments within the deadline, and their concerns reflect potential industry-wide challenges.

Fanatics Betting & Gaming, in a comprehensive six-page letter to the OCCC, argued against the proposed regulations, stating that marketing to its broad consumer base did not pose an increased risk of problem gambling. The company expressed its commitment to responsible marketing and suggested that a shift in marketing resources might be necessary if the regulations are implemented.

FanDuel echoed similar sentiments, deeming the expectation of age and exclusion list verification in standard consumer transactions as impractical. The operator urged a revision that requires operators to engage in commercially reasonable efforts to prevent individuals under 21 or participating in the Voluntary Exclusion Program from receiving promotional bonuses.

The OCCC is currently reviewing the concerns raised by Fanatics and FanDuel. A spokesperson for the commission stated that it is premature to determine whether revisions will be made and circulated for additional comments before the formal rule-making process begins. 

The outcome of this regulatory clash will undoubtedly shape the landscape of sports betting in Ohio and potentially set a precedent for other states grappling with similar challenges.