Author: Levi Brooks

Ohio’s sports betting industry is celebrating another landmark achievement. For only the second time since sports betting became legal in January 2023, the state has surpassed $1 billion in monthly handle, with November’s total reaching an impressive $1.02 billion. This performance underscores Ohio’s rapid ascent as a powerhouse in the U.S. sports betting landscape.

November Numbers Reflect Growing Industry Momentum

The November handle of $1,024,326,837 fell just shy of the record $1.11 billion posted during the industry’s launch month in January 2023. Despite this, the November figure represents a major milestone, with increased wagering activity across digital platforms driving the surge.

The Ohio Casino Control Commission also reported $117 million in taxable revenue for November, which contributed over $23.4 million in state tax revenue. This highlights the mutual benefits for both operators and the state, even though the tax figures didn’t quite match January’s record-breaking $41 million haul.

Breaking Down the Taxable Revenue:

• Total Taxable Revenue: $117,044,624
• State Tax Revenue (20% rate): $23,408,925

Ohio’s thriving sports betting market has already delivered nearly $170 million in tax revenue for 2024, showcasing its potential as a stable and lucrative revenue stream for the state.

The Big Players Continue to Dominate

As in previous months, FanDuel and DraftKings were the standout performers in November, reinforcing their dominance over Ohio’s online sports betting market. Combined, these two platforms accounted for over $680 million in handle, significantly outpacing their competitors.

FanDuel claimed the top spot with $351.1 million in bets placed, closely followed by DraftKings at $329.8 million. Bet365, BetMGM, and Fanatics rounded out the top five, but none managed to break the $100 million mark, demonstrating the gulf between the leading operators and the rest of the pack.

What’s Driving the Growth?

The impressive numbers from November can be attributed to several factors:

• Increased Access: Digital platforms have made sports betting convenient and widely accessible to Ohioans.
• Strong Competition: Operators like FanDuel and DraftKings have kept bettors engaged through aggressive marketing, promotions, and user-friendly experiences.
• Big Events: The month featured high-profile NFL and college football games, sparking a surge in betting activity.

Interestingly, Ohio’s steady growth bucks the trend seen in some other states, where betting activity plateaus after the initial excitement of legalization.

A Closer Look at 2024

Through the first 11 months of 2024, Ohio’s sports betting market has generated $847.1 million in taxable revenue, solidifying its position among the top markets in the U.S.

Year-to-Date Highlights (Jan–Nov 2024):

• Total Taxable Revenue: $847.1 million
• State Tax Revenue: Nearly $170 million

This sustained performance demonstrates the state’s ability to retain engagement from both seasoned bettors and newcomers, while operators continue to innovate to capture market share.

Challenges for Smaller Operators

While the big players dominate, smaller sportsbooks are finding it increasingly difficult to compete. With FanDuel and DraftKings commanding the lion’s share of the market, other operators are left to vie for a fraction of the handle.

Still, niche strategies and targeted marketing efforts may offer these smaller companies a way to carve out sustainable spaces in the crowded field.

The Netherlands Gambling Authority (Kansspelautoriteit, KSA) has unveiled a revamped “General Policy of Fines,” taking effect on January 1, 2025. This policy introduces a structured, transparent approach to penalties, aiming to foster compliance and deter violations in the Dutch gambling sector.

A New Era of Enforcement

The updated framework marks a significant shift in regulatory oversight, targeting breaches of the Remote Gambling Act (KOA) and the Netherlands Money Laundering and Terrorist Financing (Prevention) Act (Wwft). With five fine categories, penalties start as low as €500 for minor infractions and escalate to €2 million for severe violations, specifically under the Wwft. In some cases, fines may even reach €4 million, depending on the gravity of the offense.

Notably, non-Wwft violations classified under Category 4 can incur penalties up to 3% of the offender’s gross turnover. This proportionality ensures larger operators face fines commensurate with their financial scale, reinforcing fairness while maintaining deterrence.

Nine Steps to Compliance Clarity

The KSA has introduced a meticulous nine-step fine calculation process designed to ensure transparency and fairness. The steps include assigning a fine category, doubling penalties for repeat offenders, and scaling fines based on gross turnover. Here’s an outline of the process:

• Step 1: Determine the fine category based on the violation.
• Step 2: Double penalties for repeated offenses.
• Step 3: Adjust fines for the seriousness of the breach, including negligence and customer harm.
• Step 4: Increase fines by 50% in cases of culpability.
• Step 5: Scale fines to gross turnover, accounting for corporate group revenues.
• Step 6: Apply reductions (up to 25%) for mitigating factors like voluntary reporting or corrective actions.
• Steps 7-9: Ensure penalties are proportionate and fair, balancing deterrence with financial capacity.

This step-by-step approach provides clear guidance for operators, emphasizing both punitive and preventive objectives.

Key Features of the Fine Policy

The KSA’s fine policy is rooted in fairness and proportionality, reflecting lessons learned since the opening of the Dutch online gambling market in 2021. Here are some of the critical features:

• Turnover-Based Fines: For Category 4 offenses not related to the Wwft, fines are capped at 3% of gross turnover. This ensures larger entities face meaningful penalties.
• Dual Objectives: The policy aims to deter future violations while encouraging compliance, creating a balanced regulatory environment.
• Clarity for Licensees: Operators now have a detailed understanding of how fines are calculated, helping them take corrective measures to avoid penalties.

Lessons from the Past, Looking to the Future

Since the online gambling market launched in the Netherlands, the KSA has evolved its enforcement strategies. In 2022, the regulator imposed its first fine on a gambling licensee, marking a pivotal moment in regulatory enforcement. This new policy is a culmination of the experience gained since then.

KSA Chairman Michel Groothuizen underscored the importance of clarity and fairness in this policy. “We have now gained enough experience to create a well-considered fine policy for both license holders and other parties. This creates clarity for the parties under our supervision and hopefully motivates them even more to avoid fines,” Groothuizen said.

What This Means for the Industry

The new policy signals a stricter yet fair regulatory environment. Operators must adapt to more robust compliance measures or face hefty fines. Here’s a snapshot of potential impacts:

• For Operators: A clear and structured penalty system means operators can better understand the risks and take proactive measures.
• For Consumers: Greater enforcement of regulations is likely to lead to improved consumer protection, particularly concerning money laundering and fair play.
• For Regulators: The new policy enhances the KSA’s ability to maintain order in a growing market, aligning enforcement with industry developments.

A Look at the Fine Categories

To summarise the penalties, here’s a quick look at the fine categories:

With clear penalties and a step-by-step calculation process, the KSA aims to provide consistency in enforcement, setting a benchmark for regulatory practices.