BetMGM Fined $110K by Ontario Regulator Over Marketing Breaches

BetMGM Canada has been awarded a $110,000 fine for Ontario gambling rules and regulations breaches.

The Alcohol and Gaming Commission of Ontario (AGCO) found that BetMGM Canada Inc. violated the Registrar’s Standards for Internet Gaming on multiple occasions.

BetMGM engaged marketing companies on two separate occasions in 2024. These companies offered cash to members of the public in return for opening new BetMGM accounts.

The marketing activities occurred in “public forums,” such as a major trade conference in Canada.

AGCO’s Standards for Internet Gaming dictate that operators are responsible for the conduct of any third-party suppliers contracted to support their Ontario gaming business. Therefore, they bear responsibility for contractors who breach Ontario regulations and standards.

Timeline of Regulatory Violations

The regulator outlined three examples where BetMGM and/or their affiliates allegedly engaged in untoward activities:

1. On 13-14 January 2024, BetMGM representatives were alleged to have offered $100 in cash to new players who opened a new account and deposited $15. This was at the National Franchise Show.
2. In March 2024, BetMGM acknowledged that its marketing affiliate, “Above the Street,” had engaged in prohibited inducement marketing, which resulted in 377 player sign-ups and $127,180 in commission for the company.
3. In April 2024, BetMGM marketing affiliate Maple Leaf Marketing engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. This resulted in 94 player sign-ups and a $34,000 commission remission to Maple Leaf.

These were found to be in direct breach of the following regulations:

• 1.19 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 and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
• 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses, and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.

Dr. Karin Schnarr, Chief Executive Officer and Registrar at the Alcohol and Gaming Commission of Ontario, commented: “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.”

Crypto, Marketing, and Regulatory Challenges

Ontario has moved from an unregulated and gray market to an established iGaming market in a matter of years. The province has some of the most stringent rules surrounding gambling advertising, with the intention of protecting Ontarians “from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.”

While Ontario was a gray market, crypto casinos would have been prominent. The province, however, does not have a strong track record when it comes to digital currencies. Ontario’s Superior Court of Justice last year published a certification motion on 19 April against crypto exchange Binance, alleging that it sold crypto derivative products to retail investors without registration.

The plaintiffs alleged that thousands of Canadians had been wronged by Binance.