The Ohio Casino Control Commission (OCCC) approved a settlement agreement with DraftKings on Wednesday, issuing a $425,000 fine for the online sportsbook and casino site operator.

The final came as punishment for two separate violations by the company, one related to college player prop bets, and the other due to deposits that came from unauthorized sources.

DraftKings Takes $2.5 Million in Unauthorized Deposits

Ohio banned prop bets on individual college player performances as of March 1, 2024. Despite that, the OCCC says that DraftKings accepted an unspecified number of prop bets on college players between March 14 and March 19, violating the new policy. 

That rule went into effect after a request from Ohio Governor Mike DeWine was approved by the OCCC. Ohio still allows team-based prop bets, provided that the statistics being wagered on have historically had at least two players contribute to that category in the majority of cases. 

Secondly, the OCCC says that DraftKings allowed funding of online sportsbook accounts via cash deposits at “non-gaming retail locations,” which was not approved by the commission. According to the OCCC, nearly 41,000 such deposits, totaling more than $2.5 million, were taken by DraftKings from January 1, 2023 through March 5, 2024. 

Cash deposits are allowed under Ohio’s regulations, but only if they are made at approved cashiers or kiosks. 

“The Commission is steadfast in its efforts to ensure Ohio’s sportsbooks are in compliance with all gaming-related laws,” OCCC Chair Thomas J. Stickrath said in a statement. 

“We will not hesitate to take administrative action when necessary in order to maintain the integrity of gaming and to protect Ohio’s citizens.”

DraftKings says it has taken steps to prevent similar errors in the future, such as ensuring alerts will notify the company if any unauthorized deposits slip through in Ohio in the future. 

“DraftKings is dedicated to upholding the regulatory standards set by each state and jurisdiction in which we operate,” a spokesperson for the company said. “We value the productive relationships we’ve built with regulators and remain committed to close collaboration moving forwards.”

Massachusetts Also Questioning DraftKings’ Practices

Ohio isn’t the only state coming after DraftKings this week. On Wednesday, the Massachusetts Gaming Commission (MGC) discussed the issue of DraftKings accepting deposits by credit card, something that is banned in the state. 

While the MGC has not yet issued a penalty, commissioners were reportedly dismayed at the company for allowing the issue to happen at least twice and not quickly correcting the problem. DraftKings claims the issue arose due to a misinterpretation of Massachusetts law, which they believed only prohibited deposits via credit card within the state. 

Meanwhile, The Ohio Casino Control Commission remains one of the stronger gaming regulatory bodies in the United States. In April, the OCCC shut down three allegedly illegal gambling halls in the state, seizing equipment and cash from operators.

“Illegal casinos operate without proper oversight and prey upon vulnerable Ohioans,” OCCC Executive Director Matthew Schuler said at the time. “We appreciate the assistance of our local law enforcement partners in holding accountable those who disregard Ohio’s gambling laws.”