AGCO Hits BetMGM with $110K in Penalties
In Ontario, iGaming operators are not allowed to provide gambling incentives, bonuses, or credits to players in their advertisements, and there have been minimal instances of licensed operators facing fines for this behavior.
In August 2022, the Alcohol and Gaming Commission of Ontario (AGCO) imposed a CA$48K fine on Unibet for this exact reason. Unibet has ceased operations in Ontario. In June 2022, DraftKings was penalized CA$100K for this, while in May 2022, BetMGM and PointsBet Canada were fined CA$48K and CA$30K, respectively, just a month after the launch of the new Ontario iGaming market.
The CA$110K penalty imposed by the AGCO, Ontario's regulatory body, on BetMGM this Wednesday illustrates the necessity for operators to be cautious regarding the behaviors of associated third parties.
In this situation, the AGCO claims that BetMGM Canada Inc. breached the Registrar’s Standards for Internet Gaming by working with marketing firms where, in two distinct events in 2024, money was provided to the public in exchange for creating new BetMGM accounts.
Funds for Gaming
According to AGCO’s regulations, licensed operators must take responsibility for the actions of their third-party suppliers contracted to assist with the operator’s iGaming business.
In January, it was claimed that BetMGM representatives at the National Franchise Show proposed CA$100 in cash to new users for creating a new account and depositing CA$15.
In March, BetMGM confirmed that its affiliate “Above the Street” had participated in banned inducement marketing, which led to 377 player registrations and CA$127,180 in commissions for “Above the Street”.
BetMGM Has the Right to Appeal
In April, the BetMGM marketing affiliate "Maple Leaf Marketing" participated in unauthorized promotions and marketing aimed at encouraging on-site activations and attracting new players – actions that led to 94 player signups and CA$34K in commissions received by Maple Leaf Advertising.
"Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities,” said AGCO CEO and Registrar Dr. Karin Schnarr. “The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Ontario is among the initial regions globally to establish and implement stringent regulations concerning high-risk inducement advertising and marketing within the iGaming sector.
BetMGM is able to challenge the registrar's ruling before the Licence Appeal Tribunal in Ontario.
