AGCO hits BetMGM Canada with $110,000 penalty over illegal marketing tactics

The Alcohol and Gaming Commission of Ontario (AGCO) has fined BetMGM Canada Inc. $110,000 for breaching Ontario’s strict rules on gambling advertising and inducements.

According to the regulator, BetMGM engaged third-party marketing companies that offered cash incentives to members of the public in exchange for signing up for new accounts — something that is explicitly prohibited under Ontario’s Registrar’s Standards for Internet Gaming.

Two separate incidents in 2024 got the attention of the AGCO and required enforcement.

The first occurred at the National Franchise Show in January, where BetMGM representatives were reportedly offering $100 cash to attendees who created new accounts and deposited $15.

The second and third violations involved affiliates “Above the Street” and “Maple Leaf Marketing”, who carried out similar cash-for-signup schemes in March and April, respectively.

Together, these campaigns resulted in nearly 500 new player signups and over $160,000 in affiliate commissions.

The AGCO made it clear that operators like BetMGM are responsible for ensuring their third-party partners follow the rules.

Under Standard 1.19, all contracted affiliates must adhere to the same regulations and standards as the operator.

Standard 2.05 further bans the promotion of bonuses or inducements in public marketing unless they appear directly on the operator’s gaming site or are offered through direct communication to players who’ve opted in.

“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities,” said Dr. Karin Schnarr, AGCO’s Chief Executive Officer and Registrar. “We continue to take strong action to ensure operators and their partners work within the public interest.”

BetMGM has the option to appeal the penalty to the Licence Appeal Tribunal (LAT), an independent body under Tribunals Ontario but so far, there’s been no public confirmation on whether the operator plans to contest the decision.

Ontario has positioned itself as a global leader in regulated online gambling by enforcing some of the toughest restrictions on high-risk advertising.

The AGCO’s decision reinforces that any deviation — whether by the operator or its marketing affiliates — will come with real consequences.

The post AGCO hits BetMGM Canada with $110,000 penalty over illegal marketing tactics appeared first on ReadWrite.