Top stories around our network this week
Ohio arrived as a major market in legal U.S. sports betting this week, accompanied by both fanfare and flubs from leading sportsbooks.
A combination of more than 25 digital and brick-and-mortal operations took advantage of the Ohio Casino Control Commission’s Jan. 1 start date with an array of ribbon cuttings, VIP bets, bonus offers, and more. It marked a massive simultaneous launch by operators who are counting on Ohio to join New York, New Jersey, Nevada, Illinois, and Pennsylvania among the top betting handle and revenue-producing states.
GeoComply found that Ohio recorded more than 11 million online betting transactions on Sunday and Monday, a higher number than any other state. The nearly 167,000 mobile sportsbook app downloads nationally on New Year’s Day were among the most ever, JMP Securities reported, with Ohio’s entry into the industry undoubtedly the key factor.
But the buoyancy over that robust start was tempered by missteps by the operators, particularly when it comes to issues of marketing, responsible gambling concerns, and risks posed to underage gamblers. Before legal betting even started, the casino commission had already issued notices of large fines against Barstool Sportsbook and DraftKings. Then, the regulator this week announced new $150,000 fines pending against BetMGM, Caesars Sportsbook, and DraftKings (again).
That announcement came soon after Ohio Gov. Mike DeWine issued a public warning stressing that the operators were being closely watched for inappropriate behavior that would put the state’s residents at risk of gambling problems. In announcing the fines, the commission said failures such as insufficient publicizing of how to get problem gambling help and inaccurately promoting bets as “risk-free” left the regulator “no choice but to pursue administration action to bring operators into compliance.”
For several years, operators were largely spared such quick and aggressive enforcement actions by regulators in new states implementing sports betting. It’s clear from the tone of officials during hearings in Massachusetts, however, that sportsbooks should be prepared for the same type of scrutiny there as they approach their retail launch this month and digital debut slated for March.