- DraftKings has been fined $425,000 by the Ohio Casino Control Commission
- The operator improperly accepted prohibited prop bets on college athletes
- The company also allowed deposit-enabled sports gaming accounts to be funded through an unapproved method
The Ohio Casino Control Commission levied a $425,000 fine against DraftKings earlier this week after the company accepted improper bets and permitted sports betting accounts to be funded through an unapproved method.
According to the commission, DraftKings accepted several sports bets on prohibited college player props this past March.
Ohio prohibited sports bets on individual college player props earlier this year after a request from NCAA President Charlie Baker.
Necessary Action Taken
The Ohio Casino Control Commission noted in a release that it discovered DraftKings offered proposition wagers on individual college athletes in violation of Ohio administrative code. They also permitted deposit-enabled account to be funded through an unapproved method.
“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,” said Thomas J. Stickrath, Chair of the Ohio Casino Control Commission.
The company allowed 40,985 cash deposits to fund sports betting accounts at non-gaming retail locations, which is a method not approved by the commission. The deposits totaled more than $2.5 million and were made over Jan. 1, 2023, through March 5, 2024.
The commission will also require DraftKings to ensure that its personnel are trained in all laws, policies, and procedures relevant to accepting wagers on college sports and permissible methods of funding sports betting accounts.
“DraftKings is dedicated to upholding the regulatory standards set by each state and jurisdiction in which we operate. We value the productive relationships we’ve built with regulators and remain committed to close collaboration moving forwards,” a DraftKings spokesperson said.
Ohio Banned Individual College Player Props This Year
Ohio Casino Control Commission Executive Director Matthew Schuler approved Gov. Mike DeWine (R) and Baker’s request to prohibit bets on college player props in the state this past February.
Schuler ruled that the NCAA’s request showed “good cause” to prohibit bets on college player props. The official request was made after months of discussion and numerous reports of social media threats made to collegiate athletes, according to Gov. DeWine.
“I have determined that good cause supports the NCAA’s request to prohibit player-specific prop bets on intercollegiate athletics competitions because the NCAA’s request will safeguard the integrity of sports gaming and will be in the best interests of the public,” Schuler ruled at the time.
Player-specific prop bets did not account for a large handle total in the state. In 2023, Schuler reported approximately $104,604,320 in bets were made on college player props out of a total of $7.65 billion in placed bets. The college player prop handle only constituted 1.35% of the total sports betting handle in 2023.
DraftKings, a popular daily fantasy sports and sports betting company, has been fined $425,000 by the Ohio Casino Control Commission for violating state regulations. The fine comes after an investigation found that DraftKings had allowed individuals to place bets on sports events that had already concluded, a practice known as “post-event wagering.”
The Ohio Casino Control Commission launched an investigation into DraftKings after receiving complaints from customers who had placed bets on games that had already ended. The investigation revealed that DraftKings had failed to properly monitor its platform for post-event wagering, allowing customers to continue placing bets on games that were no longer live.
In a statement, the Ohio Casino Control Commission expressed concern over DraftKings’ lack of oversight and compliance with state regulations. The Commission emphasized the importance of ensuring fair and transparent gaming practices in order to protect consumers and maintain the integrity of sports betting.
DraftKings has since taken steps to address the issue, implementing new protocols and procedures to prevent post-event wagering from occurring in the future. The company has also agreed to pay the $425,000 fine imposed by the Ohio Casino Control Commission.
This incident serves as a reminder of the importance of strict regulation and oversight in the sports betting industry. As more states legalize sports betting, it is crucial for companies like DraftKings to adhere to state laws and regulations in order to protect consumers and maintain the integrity of the industry. Failure to do so can result in significant fines and damage to a company’s reputation.
