AGCO Hits BetMGM with $110K in Penalties

In Ontario, iGaming operators cannot promote gambling incentives, bonuses, or credits to players through advertising, and there have been minimal instances of licensed operators facing fines for such behavior. 

In August 2022, the Alcohol and Gaming Commission of Ontario (AGCO) imposed a CA$48K fine on Unibet for this exact issue. Unibet has ceased its operations in Ontario. In June 2022, DraftKings was penalized CA$100K for this, whereas BetMGM and PointsBet Canada were fined CA$48K and CA$30K, respectively, in May 2022, just one month after the new Ontario iGaming market launched. 

The CA$110K penalty imposed by the AGCO, Ontario's regulatory body, on BetMGM Wednesday illustrates the necessity for operators to be cautious regarding the activities of their affiliated third parties. 

In this instance, the AGCO claims that BetMGM Canada Inc. breached the Registrar’s Standards for Internet Gaming by collaborating with marketing firms, where in two distinct events in 2024, money was provided to individuals in exchange for creating new BetMGM accounts. 

 

Funds for Gaming 

According to AGCO’s regulations, licensed operators are accountable for the activities of their third-party suppliers engaged to assist the operator’s iGaming operations. 

In January, it was claimed that BetMGM representatives at the National Franchise Show provided CA$100 in cash to new players for creating a new account and depositing CA$15. 

In March, BetMGM admitted that its partner “Above the Street” participated in banned inducement marketing, leading 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 inducements and promotions to drive on-site activations and recruit new players – actions that led to 94 player registrations and CA$34K in commissions disbursed to 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 earliest places globally to establish and implement stringent regulations regarding high-risk inducement advertising and marketing within the iGaming sector. 

BetMGM has the option to contest the registrar's ruling at the Licence Appeal Tribunal in Ontario.