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Anticipated Legal Issues
The OCCC has broad authority. It makes licensing decisions, including issuing and revoking licenses.24 The OCCC may also fine licensees.25
Ohio has strict sports gaming advertising laws. All sports gaming advertisements must clearly convey the conditions to win, disclose the identity of the proprietor, and include a message designed to prevent gambling problems.26 Sports gaming advertisements may not depict any individual under age 21, target individuals under age 21, obscure material facts, be false, deceptive, or misleading, promote irresponsible participation in sports gaming, or even suggest that sports gaming will guarantee personal or finan- cial success.27 Proprietors must offer an opt-out option for all direct or targeted advertisements.28
The OCCC already announced action against popular sports gaming apps for violating the advertising laws. The OCCC is seeking $150,000 in fines against BetMGM, Caesars Sportsbook, and Draft- Kings specifically for failing to provide a message designed to prevent gambling
problems and for describing promotions as “free” or “risk free.”29
Bettors face various restrictions too. Ohio law requires the Attorney General to develop and implement a real time data match program.30 Proprietors must use this data match program to determine if a bettor owes money to the state or any political subdivision, or if the bettor owes money on a support order.31 If the bettor owes $600 or more, the proprietor must withhold the winnings necessary to satisfy the amount owed.32 The proprietor must send that money to the Attorney General.33
No matter one’s view of legal sports betting, it is already big business in Ohio. Whether participating or advising partic- ipants, it is important to recognize the many complex issues involved.
Abes is a Partner at Dinsmore & Shohl LLP. He co- chairs the firm’s Commercial Litigation Practice Group and the 2022-2023 CBA Secretary. Otis is an attorney in Dinsmore’s Commercial Litigation Practice Group. He has been a CBA member since 2022.
5 R.C. 3775.11; 3775.12.
6 See, e.g., https://www.transunion.com/blog/credit-ad-
vice/online-sports-betting-and-your-credit; https://www. experian.com/blogs/ask-experian/does-gambling-affect- credit-score.
7 IRS Topic No. 419; https://www.irs.gov/taxtopics/tc419. 8 Ohio Admin. Code 3775-16-2.
9 Id.
10 R.C. 3775.99.
11 R.C. 3775.04(A). 12 Id.
13 Id.
14 R.C. 3775.05.
15 R.C. 3775.04(B). 16 Id.
17 Id.
18 R.C. 3775.041. 19 R.C. 3775.04(C). 20 R.C. 3775.10(C). 21 R.C. 3775.10(D) 22 R.C. 5753.021. 23 Id.
24 R.C. 3775.02.
25 Id.
26 Ohio Admin. Code 3775-16-08.
27 Id.
28 Id.
29 Press Release, Ohio Casino Control Commis-
sion, Sports Gaming Companies Issued Notices of Violation by the Ohio Casino Control Commission, https://casinocontrol.ohio.gov/About/MediaCenter. aspx#921185-2023; Ohio Admin. Code 3775-16-09.
30 R.C. 3775.16. 31 Id.
32 Id.
33 Id.
1 2 3 4
See generally 2021 Ohio House Bill 29.
R.C. 3775.02(A).
R.C. 3775.02(B); see Ohio Admin. Code 3775. R.C. 3775.99(A).
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