BetMGM Canada fined C$110,000 in Ontario over cash-for-registration inducement

BetMGM Canada has been fined C$110,000 ($77,112) by the Alcohol and Gaming Commission of Ontario (AGCO) after third parties offered cash to consumers in return for opening accounts with the operator.

AGCO stated that in separate incidents last year, marketing companies working on behalf of the firm had offered cash incentives to members of the public.

These breaches of the Registrar’s Standards for Internet Gaming occurred in public forums, including a major national trade conference, AGCO added.

On or around January 13 and 14 last year, BetMGM Canada’s affiliate representatives were alleged to have attended the National Franchise Show.

While at the conference, those representatives are reported to have offered C$100 in cash to new players to open a BetMGM account and deposit C$15.

Secondly, on or about March 11, 2024, BetMGM recognized its affiliate partner, Above the Street, had engaged in “prohibited inducement marketing.”

Those failings resulted in 377 players signing up for BetMGM accounts, while Above the Street secured C$127,180 in commission payments.

Finally, on or about April 13, 2024, another of BetMGM’s affiliates, Maple Leaf Marketing, was found to delivered “marketing to induce on-site activations and acquire new players.”

The affiliate was able to drive 94 customer registrations, securing C$34,000 in the process.

Under Ontario’s regulations, operators are ultimately responsible for the conduct of third-party suppliers and must ensure these partners adhere to AGCO rules.

The fine is related to shortcomings of the Registrar’s Standards for Internet Gaming, the first being the failure of the third party to meet standards required by law.

The second failure relates to advertising gambling with “inducements, bonuses, and credits” outside of the exemptions.

Those exemptions are either advertising directly on an operator’s site or through direct advertising and marketing after receiving active player consent.

BetMGM Canada has the right to appeal the ruling to Ontario’s License Appeal Tribunal (LAT).

Karin Schnarr, AGCO CEO, said: “Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is 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.”

A BetMGM spokesperson said: “In early 2024, BetMGM was alerted that two third-party affiliates were acting in violation of AGCO standards by offering inducements to potential patrons to sign-up for BetMGM.  

“Upon learning this, BetMGM immediately began an internal investigation leading to the termination of these affiliate relationships due to their misconduct.  BetMGM is ultimately responsible for the actions of its affiliates.  

“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.”