BetMGM Canada fined $110K for allegedly offering cash to new customers

Ontario's gaming watchdog has issued a $110,000 fine to online sports betting platform BetMGM Canada after the company allegedly offered cash to new customers who set up an account on the platform.

The Alcohol and Gaming Commission of Ontario said in a news release on Wednesday that the activities occurred in public forums, such as a major national trade conference.

In January 2024, representatives from the company attended a major national trade conference, identified by officials as the National Franchise Show, and offered $100 in cash to new players who opened an account and deposited $15, says the AGCO. 

The AGCO says that on March 11 of the same year, BetMGM Canada's marketing affiliate, Above the Street, engaged in "prohibited inducement marketing," which means players were being awarded bonuses or credits to join the platform. The AGCO says that resulted in 377 player sign-ups and $127,180 in commissions.

Then, on April 13, 2024, the AGCO says another BetMGM marketing affiliate, Maple Leaf Marketing, engaged in "prohibited inducements and marketing" to induce on-site activations, which resulted in 94 player sign-ups and about $34,000 in commissions.

In a statement to CBC Toronto, BetMGM Canada says it was alerted in early 2024 that two third-party affiliates were acting in violation of AGCO standards by offering inducements to potential patrons to sign up for the platform. 

BetMGM says it immediately began an internal investigation leading to the termination of the affiliate relationships due to their misconduct. 

"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," it said in a statement.

Canada made single-event sports betting legal in 2021, but Ontario was the first to move ahead with a regulated sports betting program — allowing multiple operators to provide legal, online sports gambling services.

However, registered iGaming platforms in Ontario are prohibited from offering gambling inducements, bonuses, and credits as part of their "broad public advertising and marketing activities," says the AGCO.

"These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm," said the AGCO.