LEGAL BETTING?
Fun and games portrayed across various ads have already come under fire from state officials
They’re everywhere. ● Promises of winning hundreds off of just a few dollars or what may seem like free money and assurances that it’s hard to lose have blanketed airwaves, billboards and social media since the tail end of 2022. Except the propositions all come with caveats and they aren’t a sure thing – they’re advertisements for sports betting. ● While sports gaming has been legal in Ohio for less than nine weeks, the ad blitz was underway long before Jan. 1 and continues statewide. In a way, it’s akin to a political campaign, said Jason Parks, president of the Media Captain, a Columbusbased ad and marketing agency. ● “You definitely couldn’t escape it. It was just like an election with an influx of advertisements,” Parks said.
The state’s first revenue data for sports betting will be released Tuesday, and if it’s anything like politics, it could generate millions of dollars. But that might be where the comparisons stop, as the fun and games portrayed across various ads have already come under fire from state officials.
Just three days after it became legal to bet on sports in Ohio, Gov. Mike Dewine criticized companies for their ads targeting young people under the legal betting age of 21.
“We believe that at least in several occasions they have already crossed the line,” Dewine said. “My message to them is this will not be tolerated in the state of Ohio.”
In fact, the Ohio Casino Control Commission is already seeking to fine multiple sportsbooks operating in Ohio. BETMGM, Caesars and Draftkings may each face $150,000 fines for their advertising practices, according to the commission.
Ads from all three sportsbooks lacked required language about gambling responsibly. The three companies also advertised “bonuses” described as free or risk-free when patrons were required to incur a loss or risk their own money to obtain the promoted “bonus,” according to the commission.
In November, Draftkings broke state law by mailing around 2,500 advertisements directly addressed to Ohioans under the age of 21. The commission said it would pursue $350,000 in fines from Draftkings.
All sportsbooks have the chance to dispute the accusations in public hearings before the commission votes on fines and settlements with the commission can also be reached. Draftkings agreed to pay its total $500,000 in fines at the commission’s Feb. 15 meeting.
“We know that kids and those that are underage are at greater risk of developing an issue later on in life,” said Jessica Franks, a commission spokesperson. “That’s why we have pretty strict rules around advertising.”
Thousands in fines, billions in revenue
Ohio’s fines for sportsbooks that violated rules and state laws on advertising are among some of the largest in the nation, Franks said.
But the hundreds of thousands in fines still pales in comparison to the amount of money Americans bet on sports and the revenue sportsbooks take in.
In 2022, Americans placed $93.2 billion in legal sports bets and the companies they wagered through collected $7.5 billion in revenue, according to the American Gambling Association. It was a record-setting year for sportsbooks.
“The Ohio casino commission has done a better job than most in terms of both regulating and enforcing in the area of sports gambling,” said Marc Edelman, a law professor specializing in sports law and gaming law at Baruch College in New York. “With that said, as long as the financial benefit of not following a regulation is greater than the likelihood of detection, then you are likely to find businesses will continue to not follow the law.”
The issue of illegal gambling ads may keep coming up as more states legalize sports betting, Edelman said. The U.S. Supreme Court in 2018 struck down a federal law that previously banned sports gaming in most states.
Even if some sports betting ads seem too good to be true, Parks said the average person may be persuaded by endorsements from their favorite celebrity. Perceived approval from someone well-regarded can create an “emotional attachment” that’s difficult to resist, he said.
If they haven’t already, Parks said Ohioans will likely soon see former Buckeyes promoting sports gambling on social media. They’re the kind of public figures that people are familiar with and feel they can trust, he said
It’s a practice that Parks said will likely pay off if gambling companies use it to earn the confidence of Ohioans.
“I think for the advertiser, their job is to lure in customers,” Parks said. “When it comes to sports gambling though, normally the book is going to win. People need to be educated about it. It’s not a game – you can lose money and there definitely is a downside.”
Crossing a line
For its part, the Ohio Casino Control Commission is using more than fines to correct wrongs it’s seen so far in sports gambling.
On Dec. 30, the commission issued guidelines for sportsbooks on responsible gambling language that must be included in advertisements. Like Dewine,
Casino Control Commission Executive Director Matthew Schuler has voiced concern.
Late last year, Schuler said he was disappointed and called out the ads from Draftkings. He said while the commission takes fines seriously, it won’t hesitate to act to “ensure the integrity of sports gaming.”
In the weeks since the casino commission issued guidance and announced fines, Franks said it has seen improvement among the gambling companies it regulates.
It’s unclear whether more fines could be levied any time soon against sportsbooks in Ohio. The commission hasn’t announced any additional fines since Jan. 5, and none were scheduled to be discussed at the organization’s Feb. 15 meeting.
Until higher fines and stronger restrictions are put in place, Edelman said gambling companies will continue using “questionable” practices that could cross a legal line.
Edelman said he’d like to see sportsbooks
restricted from advertising on TV during hours when children are most likely to be watching.
In Sydney, Australia, Edelman said casinos are required to post the odds of winning on slot machine games. He’d like to see something similar required to combat problem gambling in the U.S. when it comes to parlays, a type of bet that requires someone to correctly predict the outcome of multiple games in order to win.
Another option would be to limit the amount of money someone can bet on sports each day, Edelman suggested. If people wanted to bet more, Edelman said, they could subject themselves to a financial background check to prove they are capable of making higher wagers.
“It depends how one defines the line,” he said. “The reality is that most businesses and gambling businesses are no different. They will do as much as they can get away with under the law.” mfilby@dispatch.com @Maxfilby