BetMGM Canada fined $110,000 for allegedly offering cash to attract new customers: AGCO

Betting kiosks are seen at the new MGM National Harbor sportsbook, Thursday, Dec. 9, 2021, in Oxon Hill, Md. (AP Photo/Julio Cortez)

Ontario’s gaming watchdog has slapped BetMGM Canada with a $110,000 fine after the company allegedly offered cash to new customers who set up an account on the platform.

In a news release issued Wednesday, the Alcohol and Gaming Commission of Ontario (AGCO) laid out the allegations against BetMGM Canada.

The AGCO said that in one instance, on or about Jan. 13 or 14, 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.

In two other instances, the AGCO said, BetMGM Canada’s marketing affiliates engaged in “prohibited inducement marketing,” which resulted in 471 new player sign-ups and more than $161,000 being paid by the company for their efforts.

In Ontario, registered iGaming are prohibited from offering gambling inducements, bonuses and credits as part of their “broad public advertising and marketing activities,” the AGCO said.

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

AGCO rules stipulate, however, that iGaming operators can advertise these incentives on their gaming site and through direct advertising and marketing, after receiving active player consent.

BetMGM responded to the allegations in a written statement issued late Wednesday afternoon.

“In early 2024, [we were] alerted that two third-party affiliates were acting in violation of AGCO standards by offering inducements to potential patrons to sign-up for BetMGM,” the internet sports betting platform said.

“Upon learning this, BetMGM immediately began an internal investigation leading to the termination of these affiliate relationships due to their misconduct.”

The company went on to say that it is “ultimately responsible for the actions of its affiliates” and has worked closely through these issues with the AGCO, including on remediation measures that were implemented as a result.

“[We are] committed to the protection of our patrons in Ontario, and regrets and apologizes that these issues have occurred.”

BetMGM can appeal the fine, the AGCO said.