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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 advertising, and there have been scarcely any instances of licensed operators receiving fines for this behavior. 

In August 2022, the Alcohol and Gaming Commission of Ontario (AGCO) penalized Unibet CA$48K 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 one month following 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 activities of their associated 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 that, in two distinct events in 2024, provided cash to the public in exchange for creating new BetMGM accounts. 

Funds for Gaming 

According to AGCO’s regulations, licensed operators are accountable for the conduct 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 promised CA$100 in cash to new players who created a new account and deposited CA$15. 

In March, BetMGM admitted that its affiliate “Above the Street” had participated in unauthorized inducement marketing, leading to 377 player registrations and CA$127,180 in commissions to “Above the Street.” 

BetMGM Has the Ability to Appeal 

In April, the BetMGM marketing partner “Maple Leaf Marketing” participated in unauthorized incentives and promotions to encourage on-site registrations and attract new players – actions that led to 94 player registrations and CA$34K in commission 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 early regions globally to implement and regulate stringent regulations concerning high-risk inducement advertising and marketing within the iGaming sector. 

BetMGM has the option to contest the registrar’s ruling before the Licence Appeal Tribunal in Ontario.