DraftKings has taken steps to correct the errors and put procedures in place to ensure that they don’t occur again.
Due to concerns about integrity and harassment, Ohio was one of the states that outlawed collegiate athlete prop betting. Despite the current ban, DraftKings appears to have continued to sell these items after the ban ended, which resulted in a six-figure fine.
DraftKings Faced Repercussions for Taking College Player Prop Bets
The sports betting behemoth reached a $425,000 settlement with the Ohio Casino Control Commission on Wednesday after realizing that DraftKings had broken its regulations. Only one of the two breaches that were noted had anything to do with prop bets made by college players; the other was caused by the operator permitting players to utilize an unauthorized means to fund their accounts.
The violations of college prop betting took place this year between March 14 and March 19, after Buckeye State’s ban on such activities. The regulator was aware that, in spite of a prior warning, DraftKings took an unknown amount of wagers at that time.
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The Ohio Casino Control Commission claims that before it was passed, DraftKings had been consulted about the ban on NCAA athlete proposition wagers. The operator should have made sure that comparable goods did not show up on its website and should have been aware that such wagers are no longer illegal.
The commission’s chair, Thomas Stickrath, reaffirmed his group’s dedication to making sure nearby sportsbooks abide by the state’s gambling regulations. As a result, he promised to intervene when required to uphold the integrity of the sector and safeguard players.
The commission further stated that DraftKings executed the settlement agreement without protest and complied with the authorities. It also made sure that any non-winning bets were repaid to the clients and that the illegal services were disabled as quickly as feasible.
DraftKings turned off the unauthorized payment method.
Meanwhile, DraftKings allows its online clients to deposit money using an unauthorized payment method without the commission’s consent. According to the Ohio Casino Control Commission, the business permitted players to charge their accounts with cash deposits made at retail establishments that did not provide gaming.
It turns out that between January 1, 2023, and March 5, 2024, the operator took 40,985 of these deposits, totaling $2.54 million.
To put things in perspective, Ohio only permits players to fund their accounts with money at specific, authorized venues.
After the issue was raised, DraftKings took care to stop the illegal cash deposits. The operator has taken steps to guarantee that it doesn’t make the same mistakes again, according to company executives. In order to do this, the business examined its deposit procedures and put in place an alert system that would let it know if a deposit was made via an unauthorized way.
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