Online sports betting has been taking the world by storm, and there have been a few missteps along the way. Recently, DraftKings was fined $350,000 for sending ads directly to people under 21 years old. The Ohio Casino Control Commission (OCCC) is also taking action against BetMGM and Caesars Sportsbook for similar violations of the advertising rules. In this blog post, we’ll explore how DraftKings got caught violating the advertising rules, what other legal actions are being taken against online sportsbooks in Ohio, and what these companies can do to avoid future fines.
What DraftKings did wrong
DraftKings has been judged to have broken the advertising rules by messaging advertising directly to people under the age of and now faces a fine. The Ohio Casino Control Commission is also taking action against BetMGM and Caesars Sportsbook.
It’s not just that DraftKings sent advertising messages to people under the age of 21. It’s that they did so without obtaining prior consent from those people or their parents or guardians. This is a clear violation of the Children’s Online Privacy Protection Act (COPPA), which prohibits companies from collecting personal information from children without parental consent.
The Ohio Casino Control Commission is taking action against DraftKings because it believes that the company’s actions violated Ohio law, which prohibits gambling operators from targeting individuals under the age of 21. The commission is also taking action against BetMGM and Caesars Sportsbook for similar reasons.
These actions come at a time when the US government is cracking down on illegal online gambling websites. In September, the Department of Justice shut down three of the largest online poker websites in the world for violating US laws. And earlier this month, Congress passed a bill that makes it illegal for banks and credit card companies to process payments to online gambling sites.
It’s clear that the US government is serious about cracking down on illegal online gambling. And it’s also clear that DraftKings broke the law by targeting young people with its marketing messages. As such, it’s not surprising that the company
The Ohio Casino Control Commission’s actions
The Ohio Casino Control Commission has issued a fine to DraftKings for violating advertising rules. The commission alleges that DraftKings sent advertising messages directly to people under the age of 21.
This is not the first time the commission has taken action against DraftKings. In 2019, the commission fined DraftKings $81,000 for similar violations.
The commission is also taking action against BetMGM and Caesars Sportsbook. Both companies are accused of misleading customers about bonus offers and free bets.
These actions come as the state of Ohio prepares to launch its own sports betting program in 2021.
The consequences for DraftKings
The consequences for DraftKings are severe. The company has been judged to have violated the advertising rules by messaging advertising directly to people under the age of 21 and now faces a fine. The Ohio Casino Control Commission is also taking action against BetMGM and Caesars Sportsbook. This is a major blow to the company’s reputation and could result in significant financial losses.
What this means for the future of sports betting in the United States
In the wake of DraftKings being fined for advertising to underage viewers, the future of sports betting in the United States is under scrutiny. The Ohio Casino Control Commission is taking action against BetMGM and Caesars Sportsbook, two other major players in the industry, for similar infractions. This could mean big changes for how sports betting is regulated in the US, with stricter rules and penalties put in place to protect minors.
It’s still unclear exactly how this will all play out, but it’s safe to say that the landscape of sports betting in the US is about to change. For now, we’ll have to wait and see what the final outcome is. But one thing is for sure: if you’re planning on placing a bet on your favorite team anytime soon, make sure you’re of legal age!
Conclusion
These hefty fines and the Ohio Casino Control Commission’s action against BetMGM and Caesars Sportsbook demonstrate that regulations around advertising are being taken seriously. Companies must be mindful of their responsibilities when it comes to reaching certain target audiences, especially those under 21 years old. It is essential for companies to ensure they adhere to these regulations or else risk heavy repercussions like DraftKings have experienced.