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The Alcohol and Gaming Commission of Ontario (AGCO) has hit BetMGM Canada with a C$110,000 fine for offering cash bonuses to new sign-ups.
In a statement released yesterday (Mar 26), the regulator announced that it uncovered two separate cases in 2024 where marketing companies contracted by BetMGM offered cash to Ontario residents in exchange for creating new BetMGM accounts.
The company was also accused of engaging in unlawful marketing activities at a major national trade conference, which is in violation of the province’s gambling laws.
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities,” AGCO chief executive Dr. Karin Schnarr stated.
“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.”
Thousands Were Paid in Commissions to Affiliates
AGCO’s Order of Monetary Penalty announced that BetMGM violations occurred in three separate incidents.
Notably, in March 2024, BetMGM acknowledged that one of its marketing affiliates, Above the Street, engaged in prohibited inducement marketing. This action resulted in 377 new player sign-ups and approximately $127,180 in commissions paid to the affiliate.
In April, another affiliate, Maple Leaf Marketing, also participated in similar unlawful inducements, leading to 94 new sign-ups and around $34,000 in commissions.
Ontario’s Tight Adversting Restrictions
These findings reflect AGCO’s commitment to ensuring that all gaming operators adhere to the established regulations, reinforcing their commitment to safeguarding consumers in Ontario’s gambling market.
Ontario stands out as one of the first jurisdictions globally to implement and enforce stringent rules aimed at curbing high-risk inducement advertising.
Under these regulations, registered iGaming operators are explicitly prohibited from including gambling inducements, bonuses, and credits in their general advertising and marketing efforts. By limiting such practices, the AGCO aims to “protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.”
Other countries are starting to implement regulations aimed at limiting the use of bonuses in promotional activities. Recently, the UK Gambling Commission introduced new updates to its marketing and promotions guidelines, with operators now prohibited from offering multi-product promotions. Wagering requirements have also been capped at 10x.
“These changes will better protect consumers from gambling harm and give consumers much better clarity on, and certainty of, offers before they decide to sign up,” said Tim Miller, Gambling Commission executive director for research and policy..
BetMGM Fined for the Second Time
This will be BetMGM’s second penalty by the Ontario regulator. It was fined C$48,000 in May 2024 for similar inducement violations. Speaking then, then-CEO of the regulator Tom Mungham stated, “The AGCO holds all registered operators to high standards of responsible gambling, player protection and game integrity, and monitors their activities to ensure they are meeting their obligations under Ontario’s Gaming Control Act and the Standards.”
Source: Next.io
