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Some of the more than 400 proposition bets for Super Bowl LI are displayed as we look at the details surrounding the YieldSec report on illegal U.S. sports betting
Some of the more than 400 proposition bets for Super Bowl LI are displayed at the Race & Sports SuperBook at the Westgate Las Vegas Resort & Casino in Las Vegas, Nevada. Photo by Ethan Miller/Getty Images via AFP.

Several prominent sportsbooks are currently facing scrutiny from Ohio regulators.

DraftKings and Barstool Underscoreg in Ohio were fined substantial amounts following settlements with the Ohio Casino Control Commission (OCCC) for their sports betting apps.

In December, regulators discovered that DraftKings was sending advertisements to individuals under the age of 21. In January, the sports betting company faced allegations of violating two additional rules: failure to adequately display problem gambling warnings and promoting “free” or “risk-free” bets.

DraftKings has agreed to pay $500,000 for its wrongdoings, which it attributed to under-age advertisements stemming from the use of its extensive Fantasy sports database. The company also announced plans to review its other advertisements to ensure they include responsible gaming language.

Barstool received a reprimand for discrepancies discovered during the Barstool College Football Show broadcast at the University of Toledo on Nov. 15, which occurred almost two months prior to the launch of legal sports betting in Ohio.

Ohio sports betting regulators have accused Barstool of promoting its sportsbook by offering cash bonuses and loyalty programs to pre-registered customers. This violates the state’s administrative code, which prohibits sports betting advertisements near college campuses and targeting individuals under 21 years old. As a result, Barstool is facing a $250,000 fine for these violations.

In January, Caesars Interactive Entertainment reached a settlement with Ohio sports betting regulators for advertising violations and agreed to pay a $150,000 fine. The Ohio Casino Control Commission (OCCC) found that the operator’s ads failed to include messaging promoting responsible gaming practices or an approved telephone number for a gambling hotline program.

Like DraftKings, Caesars was also found to be promoting “risk-free” bets. BetMGM is currently addressing allegations of improper advertising and faces a proposed $150,000 fine from regulators.

Massachusetts sportsbooks also facing backlash    

There’s trouble elsewhere, too.

The Massachusetts sports betting market has been operational for less than a month, but three top sportsbooks are already under investigation by the Massachusetts Gaming Commission for accepting illegal bets.

In Massachusetts, the regulations for legal sports betting prohibit sports betting websites from offering betting options on college teams from the state unless they are part of a tournament with at least four schools. This means that while events like the March Madness men’s college basketball tournament are allowed, betting on a Harvard-Yale game is not permitted.

MGM Springfield mistakenly accepted over $1,200 in illegal bets on two Harvard games this month due to the university being incorrectly designated as an out-of-state institution. The games in question were the Harvard-Yale men’s basketball game on Feb. 3 and the Harvard-Brown men’s basketball game on Feb. 4.

Both Encore Boston Harbor and Plainridge Park Casino are dealing with the consequences of mistakenly accepting illegal college bets as a result of data-input errors. Encore mistakenly allowed bets on a Boston College women’s basketball game, while Plainridge Park accepted bets on a Merrimack College men’s basketball game.

Encore was forced to stop all betting on NCAA women’s college basketball because of errors. These operators must resolve these issues quickly as online sports betting is set to launch in Massachusetts on March 10, just in time for March Madness.

The growing pains of legal sports betting in the US

The Ohio and Massachusetts markets for legal sports betting are still in their early stages of development, so it is not unexpected to experience some growing pains.

The sports betting industry, particularly in the United States, has worked tirelessly to establish its legitimacy. Ensuring that appropriate regulations and protocols are implemented and followed will remain an ongoing effort.

On one hand, Ohio is the fourth-largest state in the nation to legalize online sports betting, potentially generating millions in tax revenue from the newly established legal market.

Once online sports betting goes live in March, Massachusetts will be ready to take off, providing bettors in the Bay State with the convenient and secure access to mobile sportsbooks they have been eagerly anticipating.

The famous quote “With great power comes great responsibility” from the movie (Spider-Man) may seem cheesy in this situation, but it is remarkably accurate.

As a collective industry, encompassing regulators, operators, and patrons, it is crucial that we promote responsible gaming. It is imperative to prioritize consumer protection while upholding the integrity of the sports we are passionate about. Despite the challenges in regulation that may arise, we should be grateful for a legal industry where such issues can be addressed.

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