AGCO Slaps CA$110K Fine on BetMGM Canada for Cash Promos

The Alcohol and Gaming Commission of Ontario (AGCO) has named BetMGM Canada Inc. as the latest company against which to issue an enforcement action. The operator has been fined CA$110,000 for violations under the Registrar’s Standards for Internet Gaming, as confirmed by the regulator.

Ontario Goes After BetMGM Canada for Unauthorized Marketing

The regulator stepped in after it found evidence that BetMGM had offered cash to members of the public in exchange for opening accounts with the company. The marketing activities were promoted via different public forums, including a national trade conference, and through third-party affiliates.

The marketing activities were carried out by third parties for the most part, but AGCO still insists and expects license holders to ensure that any party they collaborate with on such efforts upholds the specific regulatory rules or, in this case, Standard 1.19.

The rule specifically says that “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 […]”

AGCO

AGCO has been looking to enforce specific rules that limit the type of promotions and advertisement that could lead to high-risk gambling behavior. The penalty issued by the regulator is not necessarily stiff, but it sends a clear message to the license holder, AGCO argues.

Commenting on this case, AGCO CEO and Registrar Dr. Karin Schnarr had this to say:

“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.”

Advertising Rules in Regulated Gambling Markets Getting Tougher

AGCO’s rules that seek to set robust standards for consumer protection when it comes to bonuses and promotions are not new. European jurisdictions have them, and the United States is pushing forward for their implementation. The United Kingdom announced an overhaul of its gambling rules for promotions just this week, too.

The regulator further outlined the instances during which these breaches happened as well. On March 11, 2024, marketing affiliate “Above the Street” engaged in the type of prohibited advertising which led to 377 sign-ups as well as CA$127,180 paid in commissions to the affiliate.

Similarly, on April 13, 2024, BetMGM’s affiliate partner, “Maple Leaf Marketing,” engaged in another similar case involving on-site activations, which led to 94 player sign-ups along with CA$34,000 paid out in commissions to the affiliate partner.

Not least, there was a case in January 13 and 14, 2024, when a BetMGM representative attended the National Franchise Show and offered CA$100 in cash to new players, who opened accounts and deposited at least CA$15.