The Ohio Casino Control Commission (OCCC) is taking regulatory action to prevent another case of a licensed operator offering a promotion tied to merchandise sales.
The OCCC has submitted Ohio Adm.Code Chapter 3775-16-09 to the state’s Common Sense Initiative Office as a proposed rule that expressly clarifies the manner in which license operators can offer promotions or bonuses linked to non-gaming transactions.
The rule also ensures gambling-related advertisements are free from misleading content.
Fanatics violates Ohio regulations
The OCCC has filed the rule amid a marketing mishap by Fanatics Sportsbook.
In 2023, the operator’s parent company Fanatics offered a promotion in Ohio that saw patrons in the Buckeye State rewarded with a bonus bet equivalent to the cost of purchased merchandise. The promo led to an inquiry by the OCCC that determined the promotion violated two separate sections of active state gaming regulations.
The guidelines, Rule 3775-16-08 and Rule 3775-16-09, detail standards regarding responsible gaming messaging and only offering gambling promos to patrons 21 and older. The rules also outline requirements for operators to provide opt-out options for future ads.
Ohio, like other regulated U.S. gambling markets, prohibits risk-free bet terminology.
Details of the proposed rule in Ohio
Chapter 3775-16-09 ensures that gambling-related ads in Ohio are clear and unambiguous.
In regard to promos, the proposed rule states “Sports gaming proprietors must not offer a promotion or bonus in connection with or as a result of a non-gaming, consumer transaction.” The rule takes direct aim at Fanatics’ promo tied to merchandise sales.
The new rule only allows a promo or bonus to be connected to non-gaming consumer transactions if it “Does not target individuals under the age of twenty-one, other individuals who are ineligible to participate in sports gaming, individuals with gambling problems, or other vulnerable individuals.”
The rule also permits the promos or bonuses if they are offered to patrons who have been verified to be 21 or older and if they are not in the Ohio Voluntary Exclusion Program.
The OCCC has opened a public comment period on the rule that ends July 12. The regulator has also provided residents and operators with a Business Impact Analysis.
Regulatory woes for Fanatics
Fanatics’ violation in Ohio last year adds to another misstep by the operator.
Earlier this month, the Tennessee Sports Wagering Council handed Fanatics a $50,000 fine for violating the state’s rules regarding self-exclusion lists. Fanatics self-reported the violations after allowing eight self-excluded account holders to wager with the sportsbook.
Fanatics attributed the error to its $225 million takeover of PointsBet’s U.S. business.
