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DraftKings and Barstool Sports agree to pay $750,000 in fines

21 Feb 2023

By Jarrod LeBlanc
DraftKings

DraftKings



The time to pay the piper came last week for DraftKings and Barstool Sportsbook as they each settled their respective violations of The State of Ohio’s gambling promotion rules.

While sports betting in The Buckeye State only launched on the first of the year, it didn’t take long before both DraftKings and Barstool broke Ohio’s gambling promotion rules. Last week, each company reached a settlement according to the Ohio Casino Control Commission.

According to the settlement agreement on the Ohio Casino Control Commission’s website DraftKings Sportsbook committed the following violations:

  • Mailed approximately 2,582 advertisements in November 2022 addressed directly to named individuals under the age of 21 that encouraged the recipient to down the DraftKings Sportsbook app, scan the provided QR code, and claim $200 in free bets. This occurred due to a filtering error that applied filtering for an 18+ audience rather than 21+.

  • Between 1-3 January 2023, DraftKings ran sports game advertisements in which the message designed to prevent problem gambling and provide information on how to access resources related to problem gambling and provide information on how to access resources related to problem gambling, including an approved helpline, was not clear or conspicuous.

  • Advertised promotions or bonuses described as “free” when a patron was required to risk their own money to obtain the promotion between 1-3 January 2023.

As a result of these violations, DraftKings agreed to pay $350,000 for the mailers and $150,00 for the lack of problem gambling notices as well as the free bonus disclaimers.

According to the settlement agreement on the Ohio Casino Control Commission’s website Penn Sports Interactive, which completed its acquisition of Barstool Sports last week, committed the following violations:

  • Ran an advertisement during its Barstool College Football Show at the University of Toledo’s campus promoting pre-registration for the Barstool Sportsbook including the offering of bonus cash for the Barstool Sportsbook and “mycash” for PENN Entertainment casinos related to Barstool Sportsbook pre-registration. This particular advertisement by Penn Sports Interactive directly promoting the Barstool Sportsbook is considered an advertisement.

  • The show was recorded in front of a live audience of approximately 700, which means it was likely there were individuals present in the audience who were under 21-years-old. Despite the fact that it was also broadcast in real time on YouTube, it was deemed that did not negate the live audience infractions.

As a result of these violations, Penn Sports Interactive agreed to pay $250,000.
 
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