An online sports betting operator was fined $110,000 by Ontario regulators for marketing and advertising inducement violations that occurred in 2024.
The Alcohol and Gaming Commission of Ontario (AGCO) announced Wednesday that mobile sportsbook BetMGM Canada was punished for violating the “Registrar’s Standards for Internet Gaming” after the company and two of its marketing affiliates offered sign-up inducements to individuals in a public forum.
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities,” said Dr. Karin Schnarr, AGCO CEO and registrar. “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.”
Breaking the rules
BetMGM representatives allegedly offered $100 in cash to new customers for creating an account and depositing $15 at the National Franchise Show in January 2024, according to AGCO.
In March 2024, BetMGM said marketing affiliate Above the Street “engaged in prohibited inducement marketing” that resulted in 377 new customers and $127,180 in commissions to the affiliate company.
In April 2024, BetMGM affiliate Maple Leaf Marketing used inducements to acquire 94 on-site players. The affiliate was paid $34,000 in commissions.
Ontario was one of the first legal betting jurisdictions to “strictly limit high-risk inducement advertising and marketing in the online gambling industry.” The regulators prohibit registered online gaming operators from using marketing and advertising to give out sportsbook and casino bonuses and credits.
Standard’s regulations
The AGCO listed the two Ontario sports betting regulations that BetMGM violated.
1.19: Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
2.05: Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator's gaming site and through direct advertising and marketing, after receiving active player consent.
“These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm,” the AGCO said.
