The Ontario Gaming Regulatory Authority (AGCO) has fined BetMGM Canada $110,000 for violating advertising regulations by offering cash incentives to new customers. The company was found to have illegally offered $100 in cash to new customers during the National Franchise Show held from January 13 to 14, 2024. However, customers were required to make a deposit of $15, which constitutes an inducement, a practice that is prohibited in Ontario.
In addition to BetMGM’s direct involvement, the company’s marketing affiliates were also found to have engaged in prohibited inducement practices. The AGCO discovered that these affiliates actively promoted the campaign, leading to 471 new sign-ups for the BetMGM platform. BetMGM paid over $161,000 to these affiliates for their role in the campaign.
In Ontario, regulations prohibit offering bonuses, credits, and incentives for gambling unless they are provided through official gaming sites or via direct advertising after obtaining customer consent. These rules are in place to protect residents from aggressive marketing tactics and to minimize the harmful effects of gambling.
BetMGM issued a statement acknowledging the violation and explaining their response. The company stated that it became aware of the breach in early 2024 and immediately initiated an internal investigation. As a result, contracts with the offending affiliates were terminated. BetMGM emphasized its responsibility for the actions of its affiliates and expressed regret over the incident, apologizing for the inconvenience caused. The company also affirmed that protecting Ontario customers remains its top priority and that it is working closely with the AGCO to ensure compliance moving forward.