【willbetdark summoning】Ontario Penalises BetMGM over iGaming Violations

The Alcohol and Gaming Commission of Ontario has reported that BetMGM Canada has recently been fined. According to the gambling regulator, an Order of Monetary Penalty of CA$110,000 has been imposed on the private operator for violating Ontario’s directives on regulated online gambling.

AGCO and its subsidiary, iGaming Ontario, oversee the province’s regulated online gambling and sports betting market involving third-party operators.

The open iGaming model commenced in April 2022, rapidly establishing Ontario as a leader in online casinos and sports betting. Numerous operators have since entered the market, and the gambling watchdog ensures they comply with the rules.

BetMGM Canada Breaks the Rules

In its official statement, AGCO reported that on two distinct occasions in 2024, BetMGM used marketing companies to offer cash incentives to locals who registered for new accounts with the iGaming brand. The regulator said those marketing initiatives occurred in public forums, including a massive national trade conference.

Under provincial iGaming standards, licensed operators, such as BetMGM, are responsible for managing their third-party suppliers contracted to support the operator and its operations in Ontario. These operators must ensure their third-party providers comply with Ontario laws, regulations, and standards.

Ontario is one of the few jurisdictions that mandates a limit on high-risk inducement advertisements and marketing concerning regulated online gambling. Furthermore, permitted operators cannot offer gambling inducements, bonuses or credits in their public advertising campaigns.

With these standards, the provincial government aims to protect Ontarians from so-called predatory advertisements and promotional marketing efforts, thereby reducing the risk of residents developing gambling-related problems.

However, as a licensed operator, BetMGM Canada has the right to appeal the monetary penalty. If the company intends to do so, it must submit the appeal to the Licence Appeal Tribunal, which is an independent adjudicative tribunal operating separately from the AGCO.

AGCO’s CEO Shares Input

Dr. Karin Schnarr, Chief Executive Officer and Registrar of the AGCO, also shared a few words in the statement:

“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites are 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.”

Breaking Down the Violations

In its statement, AGCO highlighted that BetMGM Canada failed to adhere to the Registrar’s Standards for Internet Gaming. The operator breached the following provisions of the provincial rules:

• 1.19: operators are responsible for the actions of third parties with whom they collaborate for their iGaming operations in Ontario. The provision stipulates that operators must require their third-party partners to conduct themselves appropriately while carrying out activities on behalf of the operator.
• 2.05: Advertising that promotes gambling inducements, bonuses, and credits is prohibited. However, there is an exception. It can occur on the operator’s official website and through direct advertising, provided they have consent from the player’s side.

According to the iGaming regulator, BetMGM and its affiliates breached the provisions with the following actions:

• On or around 13 January 202, the operator’s representatives reportedly attended the National Franchise Show and offered cash to players who registered an account and deposited at least CA$15.
• On or about 11 March 2024, BetMGM admitted that its marketing partner, “Above the Street,” had engaged in unlawful advertising. This resulted in 377 player registrations and approximately CA$127,180 in commissions to the marketing affiliate.
• The last offence was around April 13, 2024, when another marketing affiliate to the operator, Maple Leaf Marketing, ran unregulated inducements to attract bettors through on-site activations. This resulted in 94 new player registrations and around CA$34,000 in commissions to Maple Leaf Marketing.

It remains to be seen whether BetMGM’s Canadian brand will take action to appeal the recently imposed monetary penalty. So far, there have been no comments from the operator on the topic.

Not the First Instance

It is worth noting that this is not the first time BetMGM breached provincial standards for iGaming. Shortly after the launch of the digital market for third-party gambling brands in April 2022, BetMGM and PointsBet were fined for alleged advertising and inducement violations.

In May 2022, AGCO reported that BetMGM failed to comply with Standards 2.04 and 2.05 of the provincial standards, thus incurring a CA$48,000 fine from the gambling regulator.

The commission revealed that BetMGM’s breaches were regarding three separate posts on Twitter (now X) from the company in early April 2022. AGCO shared that one of these posts promoted a CA$240k Launch Party, while the second advertised a CA$10 awarded for placing a CA$25 bet first. The last one was about a “Jimi Hendrix Free Spin Friday.”

Provincial rules state that these types of gambling promotions are prohibited, which led to the AGCO taking action. The regulator also reminded that the rules stipulate that advertisements must be truthful and not misleading to consumers.