The Alcohol and Gaming Commission of Ontario (AGCO) has fined BetMGM Canada $110,000 for offering cash to new customers who signed up and placed a deposit.

The AGCO’s regulations expressly forbid gambling operators who are licensed in Ontario from publicly advertising sign-up bonuses or any other inducements designed to attract new players (Standard 2.05). The regulator also makes operators responsible for the conduct of their third-party partners such as marketing affiliates (Standard 1.19).

The commission said in a news release that BetMGM violated its Registrar’s Standards for Internet Gaming in separate incidents.

The AGCO asserts that in January 2024, BetMGM representatives allegedly attended the National Franchise Show and were offering $100 in cash to new players who opened a new account and deposited $15. Two months later, said the AGCO, BetMGM acknowledged that its marketing affiliate Above the Street had engaged in prohibited inducement marketing.

BetMGM signed up 377 new players and Above The Street made $127,180.00 in commissions as a result of the prohibited marketing, said the AGCO.

Then, last April, another BetMGM marketing affiliate, Maple Leaf Marketing, also engaged in prohibited inducements and marketing, resulting in 94 player sign-ups and about $34,000 in commissions for the marketing firm.

“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.”

BetMGM terminated affiliate relationships in response

A BetMGM representative told Canadian Gaming Business that when it learned of the violations, it began an internal investigation that ultimately led to the termination of the relevant affiliate relationships “due to their misconduct.”

The company also worked with the AGCO on remediation.

“BetMGM is ultimately responsible for the actions of its affiliates,” said the rep. “BetMGM has worked closely through these issues with the AGCO including on remediation measures that were implemented as a result. BetMGM is committed to the protection of our patrons in Ontario, and regrets and apologizes that these issues have occurred.”

AGCO has fined other operators for similar infractions

The AGCO has fined other operators in the past for similar infractions, although most of those violations came during the early stages of the Ontario open market.

Back in May, just one month after the provincial online gaming market opened, the regulator fined BetMGM $48,000, as well as PointsBet $30,000, for advertising and inducement infractions. In that instance, BetMGM’s mistakes included marketing a “$250K Launch Party” which included a contest offer wherein the winner would receive a $100,000 casino bonus.

The likes of DraftKings and Unibet, the latter of which has since exited the province, were also punished in the early months of regulated online gaming for marketing violatins.

Regulator has refined approach to ads

The AGCO has refined its regulatory framework relating to ads over time. In February of last year, it officially implemented new rules that ban the use of cartoon figures, social media influencers and celebrities who are likely to appeal to minors in all materials and communications provided by operators.

Operators are also now barred from using active or retired athletes who have secured deals with gambling companies, unless they are specifically used to promote responsible gambling measures. BetMGM has used Canadian hockey icon Connor McDavid in a highly visible and successful RG campaign under the adjusted rules