DraftKings was Fined for Violating Ohio Sports Betting Rules on College Props

DraftKings is being issued a fine for violating Ohio sports betting rules on wagers for specific college players.

The online sports betting operator will pay $425,000 after reaching a settlement on the infraction with the Ohio Casino Control Commission, which oversees sports betting in Ohio. 

The Buckeye State, notably, is among the regions that have taken sports gambling regulation most seriously since launching services in January 2023. This latest enforcement is part of Ohio’s prop betting rule aimed at protecting individual athletes, specifically on the collegiate side.

Though this issue is longstanding, dating back to last March, the end result may speak volumes. Specifically, this fine could be a sign of changes to come for online sports betting in the United States at large.

Full Details of DraftKings Paying Ohio Sports Betting Fine

Haley BeMiller of The Columbus Dispatch has even more on DraftKings’ Ohio sports betting fine:

“DraftKings must pay $425,000 as part of a settlement with the Ohio Casino Control Commission announced last week. The company accepted proposition or ‘prop’ bets on players' performances in March despite a ban that had gone into effect weeks prior, according to documents obtained by this newspaper's statehouse bureau. The fine will go into Ohio's sports gaming fund, which largely gets funneled to schools. ‘The Commission is steadfast in its efforts to ensure Ohio's sportsbooks are in compliance with all gaming‐related laws, and we will not hesitate to take administrative action when necessary in order to maintain the integrity of gaming and to protect Ohio's citizens,’ Chair Thomas Stickrath said in a statement.”

DraftKings, it seems, has not put up much of a fight against the violation. The company released a statement reiterating its intentions to remain compliant in the Ohio sports betting market. 

Of course, this is not the only recent DraftKings sports betting fine in Ohio worth discussion. As BeMiller notes, they recently were penalized for allowing bettors to deposit funds into their DraftKings accounts by “bringing cash to non-gaming stores, such as 7-Eleven or Dollar General.”

Ohio sports betting regulation currently does not permit online accounts to be funded in this manner. This deposit method can increase the ease with which people launder money.

In total, DraftKings allowed “nearly 41,000 unapproved deposits from January 2023 to March of this year.” These transactions totaled $2.5 million.

Harassment of College Athletes Prompted Ohio Prop Betting Ban

Looking at the Ohio college prop betting ban specifically, the Commision implemented restrictions after numerous athletes faced harassment on social media. Coaches of college teams have also reported receiving “hateful messages from bettors who lost money” on their games. 

The NCAA governing body has aggressively supported these measures as they seek to prioritize athlete safety in the sports betting era. NCAA President Charlie Baker, in fact, has publicly lobbied for other states to maintain the stance taken by the Ohio sports betting market. 

More than several states currently disallow college prop betting. Some of them are even larger markets like Ohio. Most prominently, online sports betting in New York does not include prop betting for individual college players.

Over time, other states may follow in the footsteps of The Buckeye State and The Empire State, among others. Granted it is too early to tell. It can feel like legal sports betting in the United States has been around for a while. And in some ways, it has a longer-standing tenure. But the Supreme Court of the United States only overturned the Professional and Amateur Sports Protection Act in 2018. Less than a decade’s worth of time is not that lengthy when measuring the introduction of an entire industry.

This is all to say, sports betting laws and regulations in the USA are still evolving. And they will likely continue to do so for the foreseeable future.

Could We See Prop Betting Bans on Professional Athletes As Well?

This question is often dismissed because pro athletes are (typically) paid handsome sums. That compensation, to many, is not just reflective of their talent. It also encompasses having to deal with the negative attention from media, fans and, yes, sports bettors.

Still, there is a human element to all sports that people often overlook. Pro athletes are not commodities just because they are rich or play a game for a living. They are real, actual people. And they deal with a lot of the same harassment as NCAA players, often on a larger scale.

The Ohio sports betting market knows this firsthand. Last year, then-head coach of the Cleveland Cavaliers J.B. Bickerstaff said he would receive outlandish messages from aggrieved sports bettors that referenced his children and included his home address. The athletes actually playing games are no doubt encountering similar issues. 

That makes the question of “Will pro sports prop betting options dwindle?” a pretty reasonable one. Heck some states already restrict certain wagers. In New York, for example, they do not allow prop betting on player awards. The state has opted to nix any wagers that require votes to determine outcomes. They consider that too subjective. The Empire State, along with many others, has also banned daily fantasy sports that too closely mirror general sports betting.

Overall, though, online prop betting in the United States is not going anywhere. It is too much of an interest-driver and therefore revenue-generator to fall completely by the wayside. However, as the industry continues to mature, and incidents continue to mount, don’t be surprised if and when more steps are taken to restrict options in hopes of further protecting both pro and college athletes as well as coaches.

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