BetMGM Penalized in Ontario for Violating Gaming Standards
The Alcohol and Gaming Commission of Ontario (AGCO) has imposed an Order of Monetary Penalty (OMP) of $110,000 on BetMGM Canada Inc. for breaching Ontario's internet gaming regulations.
LISTEN TO THIS ARTICLE:The penalty follows an investigation into BetMGM's marketing tactics last year, which were determined to be non-compliant with AGCO's Standards for Internet Gaming.
On two occasions in 2024, BetMGM worked with marketing firms that incentivized individuals to create new accounts by offering them cash rewards. The first incident occurred on March 11, when 'Above the Street,' one of the operator's marketing affiliates, engaged in prohibited inducement marketing, leading to 377 new player registrations and $127,180 in commissions.
In the second incident, around April 13, 2024, another BetMGM affiliate, Maple Leaf Marketing, offered cash rewards to encourage on-site activations and attract new players. This tactic led to 94 new player registrations, earning the affiliate about $34,000 in commissions.
The AGCO reported that the marketing activities also extended to public forums, including a major national trade conference. On January 13 and 14, 2024, BetMGM representatives allegedly attended the National Franchise Show and offered $100 in cash to individuals who signed up for a new account and made a $15 deposit.
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Standards Designed to Protect Ontarians from Harm
Ontario's gaming regulations strictly restrict high-risk advertising and marketing tactics. The AGCO established the standards to protect Ontarians from being targeted by exploitative advertising and promotional tactics that can lead to gambling-related harm.
Under Standard 2.05, licensed iGaming operators are barred from including inducements, bonuses, and credits in their public advertising and marketing campaigns.
As per Standard 1.19, operators are accountable for the actions of their third-party suppliers, who must comply with Ontario laws, regulations, and standards. As such, the infractions committed by the marketing affiliates led to disciplinary action against BetMGM.
Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. 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.
If BetMGM chooses to contest the penalty, it can file an appeal with the License Appeal Tribunal (LAT), an independent adjudicative body within Tribunals Ontario.
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