BetMGM Canada is being penalized for violating internet gaming rules in Ontario.
The Alcohol and Gaming Commission of Ontario (AGCO) has issued BetMGM Canada an Order of Monetary Penalty of $110,000 for violating the commission’s standards for internet gaming regarding advertising and marketing for gambling in 2024.
Last year, BetMGM participated in marketing campaigns with companies offering cash to the public in exchange for opening new accounts. The violations occurred in public forums, including a national trade conference. BetMGM has been penalized for the actions of the marketing companies as the AGCO’s standards hold operators responsible for the conduct of their third-party suppliers who are contracted to support operations in Ontario.
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities,” said AGCO CEO and Registrar Dr. Karin Schnarr. “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.”
According to the AGCO, BetMGM representatives offered $100 in cash to new players who opened an account and deposited $15 at the National Franchise Show in January 2024.
Two months later, BetMGM self-reported prohibited inducement marketing through its marketing affiliate Above the Street. Its improper practices resulted in 377 sign-ups.
Total commissions paid to Above the Street reached $127,180.
Maple Leaf Marketing, another BetMGM marketing affiliate, also violated the AGCO’s internet gaming standards by offering prohibited inducements to acquire new players.
The marketing affiliate was paid $34,000 in commissions behind 94 sign-ups.
The AGCO requires BetMGM to ensure its third-party suppliers adhere to its standards. As a licensed iGaming operator in Ontario, BetMGM is banned from offering gambling inducements, bonuses and credits as part of its public marketing and ad campaigns.
The AGCO has set its standards to limit predatory practices and gambling-related harm.
BetMGM Canada has the right to appeal the AGCO’s monetary penalty. The operator can file its appeal with the License Appeal Tribunal, which is independent of the commission.
