Legal Sports Betting Brief: Ohio, Massachusetts, Brazil

• DraftKings faced a fine in Ohio and questions in Massachusetts for unregulated sports betting actions.
• Countries outside the US are cracking down on illegal sportsbooks as they attempt to launch their own industries.

CLEVELAND – This week’s legal sports betting brief highlights the growing pains of global gambling markets as they navigate compliance, regulation, and technological challenges. From hefty fines for DraftKings in the U.S. to large-scale online sportsbook blockages in Indonesia and Brazil, authorities worldwide are doubling down on ensuring responsible gambling practices.

Ohio Fines DraftKings $425K for Compliance Violations

Ohio’s Casino Control Commission fined DraftKings $425,000 for two significant infractions: offering banned college player prop bets and allowing unapproved funding sources for betting accounts.

The Ohio sports betting violations occurred earlier this year, with nearly $2.5 million in unapproved deposits made. While DraftKings has since voided affected bets, refunded players, and implemented stricter protocols, the penalty highlights Ohio’s firm stance on gaming regulations.

DraftKings Under Fire in Massachusetts for Credit Card Funding

DraftKings faced tough questions from Massachusetts regulators after users exploited a loophole to fund sports betting with a credit card from out of the state. This is a violation of Massachusetts sports betting laws.

The company admitted to internal missteps and misinterpretations of the legal sports betting rules, which allowed $83,000 worth of bets over several months. While DraftKings expressed their implementation of stricter oversight, the Massachusetts Gaming Commission continues to deliberate potential penalties.

Indonesia and Brazil Ramp Up Online Gambling Crackdowns

Indonesia’s government intensified its battle against online gambling through AI-powered detection and cyber patrols. The Online Gambling Eradication Task Force blocked over 315,000 items in a single month, collaborating with financial institutions to disrupt illicit transactions.

Minister Meutya Hafid emphasized public awareness and journalist contributions to curbing gambling’s societal impacts.

As for Brazil, the Ministry of Finance ordered the blocking of 1,812 additional gambling sites, bringing the total to 5,200 as the country prepares the Brazil sports betting market launch in January 2025.

Strict measures aim to protect consumers, including bans on underage-targeted ads and welfare fund misuse. Licensed operators face increased scrutiny to comply with new regulations or risk losing access to the burgeoning market.

News tags: Brazil | Brazil Ministry of Finance | Credit Cards | DraftKings | Indonesia | Massachusetts | Meutya Hafid | Ohio | Ohio Casino Control Commission