Regulators in Ohio are hoping to improve some rules for operators in the wake of a recent violation by Fanatics.
The Ohio Casino Control Commission (OCCC) is proposing a rule (Ohio Adm.Code Chapter 3775-16-09) to prevent licensed operators from offering promotions tied to merchandise sales. The rule clarifies how operators can provide bonuses linked to non-gaming transactions and ensures that gambling-related ads are clear and accurate.
To get feedback on the idea, the OCCC opened a public comment period on the rule that ended July 12.
New Guidelines Address Responsible Gaming Messaging
In 2023, Fanatics, the operator’s parent company, offered a promotion in Ohio where patrons were rewarded with a bonus bet equivalent to the cost of purchased merchandise. However, this promotion violated two separate sections of active state gaming regulations.
The specific guidelines address responsible gaming messaging and restrict gambling promos to those aged 21 and older. Additionally, operators are required to provide opt-out options for future advertisements.
It’s important to note that Ohio, like other regulated U.S. gambling markets, prohibits the use of risk-free bet terminology.
Tennessee Debacle Prompts Ohio’s Move
Earlier this month, the Tennessee Sports Wagering Council fined Fanatics $50,000 for violating the state’s rules on self-exclusion lists. The operator accidentally allowed eight people who had chosen not to gamble to place bets on their site.
According to Michael Levine, a senior lawyer for Fanatics, the mistake occurred because they used an outdated list from Tennessee, which had originally been in effect when they launched in the state in 2023. He says it was missed during the operator’s $225 million acquisition of PointsBet’s U.S. operations. Upon discovering the error, Fanatics promptly fixed the coding glitch and reimbursed the affected bettors for their losses during the exclusion period.
What Would The New Ohio Rule Ensure?
The proposed rule prohibits sports gaming proprietors from offering promotions or bonuses in connection with non-gaming consumer transactions. Specifically, it targets Fanatics’ promotion tied to merchandise sales.
Under the new rule, a promo or bonus can only be linked to non-gaming consumer transactions if it does not target individuals under the age of twenty-one, those ineligible to participate in sports gaming, individuals with gambling problems, or other vulnerable individuals. The rule also permits such promotions or bonuses for people who are verified to be 21 or older and not part of the Ohio Voluntary Exclusion Program.
Ohio And Fanatics Have a Strong Relationship
In late 2021, Ohio legalized sports betting, and by early 2023, online sports betting was up and running. With its array of professional sports teams, Ohio has become a hub for sports betting, drawing in several sportsbooks. Among them is Fanatics, which has established a physical presence in the state through its partnership with the Cleveland Guardians.
Fanatics is an official betting partner of the Cleveland Guardians and has a brick-and-mortar sportsbook at Progressive Field, where the Guardians play their home games.
So, we’ll await the results of the public comment period and see which road the discussion takes.
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