AGCO Hits BetMGM with $110K in Penalties

Posted on: March 27, 2025, 12:04h. 

Last updated on: March 27, 2025, 12:16h.

Mark Keast Read More
Expertise: Canadian Gaming, iGaming, Las Vegas, Sports Betting, NFL, Boxing, UFC.
  • BetMGM fined over alleged actions by third-party marketing companies
  • Licensed operators aren’t allowed to offer bonuses or inducements
  • $110K fine the largest in Ontario in the three years since the open, regulated market went live

In Ontario, iGaming operators are prohibited from offering gambling inducements, bonuses, or credits to players in advertising, and there have been very few examples of licensed operators being fined for such conduct.

A man places a bet online while watching a football game. (Image: Shutterstock)

Unibet was fined CA$48K by the Alcohol and Gaming Commission of Ontario (AGCO) for this very thing in August 2022. Unibet is no longer operating in Ontario. DraftKings was fined CA$100K for this in June 2022 while BetMGM and PointsBet Canada were fined CA$48K and CA$30K, respectively, for this in May 2022, one month after the new Ontario iGaming market went live.

The fine of CA$110K by the AGCO, the Ontario regulator, against BetMGM on Wednesday is an example of how operators need to be careful about the actions of third parties they are aligned with.

In this case, the AGCO alleges BetMGM Canada Inc. violated the Registrar’s Standards for Internet Gaming by engaging with marketing companies where, in two separate incidents in 2024, cash was offered to members of the public in return for opening new BetMGM accounts.

Cash for Play

Under AGCO’s rules, licensed operators are responsible for the actions of their third-party suppliers who are contracted to support the operator’s iGaming business.

In January, BetMGM representatives at the National Franchise Show were alleged to have offered CA$100 in cash to new players for opening a new account and depositing CA$15.

In March, BetMGM acknowledged that its affiliate “Above the Street” had engaged in prohibited inducement marketing resulting in 377 player signups and CA$127,180 in commissions to “Above the Street”.

BetMGM Can Appeal

In April, BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and sign up new players – conduct that resulted in 94 player signups and CA$34K in commission paid to Maple Leaf Advertising.

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.”

Ontario is one of the first jurisdictions in the world to set up and enforce strict rules around high-risk inducement advertising and marketing in the iGaming industry.

BetMGM can appeal the registrar’s decision to the Licence Appeal Tribunal in Ontario.