Ontario’s gaming regulator, the Alcohol and Gaming Commission of Ontario (AGCO), has fined online operator BetMGM Canada CA$110,000 for allegedly offering cash to get new customers to sign up to its platform.
The news broke on Wednesday when the Gaming Commission disclosed that BetMGM had offered cash and rewards to players who opened new accounts on three occasions between January and April 13, 2024.
Two of the incidents, which allegedly resulted in a combined 471 sign-ups, involved BetMGM marketing affiliates Maple Leaf Marketing and Above the Street, which netted CA$34,000 and CA$127,000 in commissions, respectively, after enticing players to sign up with the promise of various betting-related awards, such as bonuses or extra credits.
The other incident allegedly involved BetMGM Canada representatives at the National Franchise Show in January 2024, who offered potential players CA$100 in cash if they signed up to BetMGM and deposited CA$15.
Ontario was the first Canadian province to launch a sports betting market, but its rules prevent sportsbooks from offering inducements, credits, or benefits to potential customers. According to AGCO, this rule is part of a series of standards to limit the risk of gambling harm.
In a statement to CBC Toronto, BetMGM Canada apologized for the breaches and announced that it has terminated its links with the two affiliates and worked with AGCO to address the issue.