Fanatics and FanDuel come out against Ohio’s proposed sports betting restrictions
Operators voice concerns with OCCC’s proposal to restrict tying promos to non-gambling transactions
Fanatics Betting & Gaming represents one of the most serious challengers to FanDuel’s dominance of the US market, but the two operators are unified in their opposition to a new proposed restriction in Ohio related to the marketing of promotional sports betting offers.
The Ohio Casino Control Commission (OCCC) is seeking to restrict the purveying of promos tethered to non-gambling transactions unless the operator can be assured the offer is not reaching someone under the age of 21 or anyone part of the state’s Voluntary Exclusion Program (VEP).
The OCCC’s proposal, which was made public on November 9, is partly in response to a situation in May in which the commission made Fanatics suspend an acquisition offer that had provided a bonus bet to new sportsbook users who had purchased merchandise from the operator’s online retail wing.
The proposed guidelines state that “sports gaming proprietors must not offer a promotion bonus in connection with or as a result of a non-gaming consumer transaction” if the would-be recipient’s age or VEP status is in question.
Both Fanatics and FanDuel formally voiced their concerns with the proposal prior to the December 7 deadline for comments, with Fanatics submitting a six-page letter to the OCCC. In extracts of that letter published by the SportsHandle website, Fanatics said: “FBG has previously noted to OCCC staff the Company’s strong belief that executing on a marketing strategy that focused on speaking to Fanatics customers when they engage with Fanatics businesses is not just a sound business decision, but a more responsible means of marketing.”
The letter went on to state that if the new regulations were to be implemented: “FBG will shift marketing resources toward other mediums (i.e., TV, out of home) where a higher percentage of minors and Voluntary Exclusion Program (VEP) participants, the very people the OCCC is seeking to limit exposure for, will view FBG’s offers.”
Fanatics, which is striving to leverage its vast user database to build an interconnected merchandise, collectibles and gaming ecosystem, is seeking to have the regulation apply solely to direct personalized marketing offers executed via mail, email or SMS.
FanDuel conveyed a similar sentiment in its own letter, stating “it is not feasible for that same level of verification to be applied to individuals engaged in non-gaming consumer transactions, especially when such transactions take place with a third party.”
The OCCC is in the process of reviewing the letters.