Ontario’s first ninety days
Regulator quick to stamp out alleged breaches T he regulated market may only be in its infancy but the Alcohol and Gaming Commission of Ontario (AGCO)
Standards, the AGCO pointed to BetMGM’s ‘CA$250,000 Launch Party’ advert ran on Twitter. The campaign included a competition with the winner set to receive a $100,000 casino bonus. The post was initially tweeted on 4 April and again on 11 April. BetMGM Canada also ran a ‘Bellagio’ ad, including an offer of a CA$10 casino bonus in return for a CA$25 bet, with the post initially tweeted on 4 April, and again on 6 April and 8 April. In addition, the operator posted a ‘Jimi Hendrix Free Spin Friday’ for the chance to win 100 free spins on Twitter several times on 8 April. According to the AGCO, these three cases were regarded as breaches of Standard 2.05. Meanwhile, PointsBet Canada was flagged for two alleged breaches of Standard 2.05. The first of these comprised a poster campaign on GO trains and in multiple products with an inducement to play for free. In the case of Draftkings, AGCO found that between its launch onto the market on 19 May and the end of that month, the business posted or aired multiple broad gambling inducements including advertisements of boosted odds. This, they say, is in violation of the provincial standards for sports betting, which lay down that inducement, bonuses and credits may only be advertised on operators’ websites or via direct marketing. BetMGM Canada, PointsBet Canada and Draftkings have the option to appeal the decisions to the Licence Appeal Tribunal (LAT), an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
has already shown it is keen to ensure its regulations are complied with. In the first 90 days since launch on April 4, three fines were issued for breaking the regulator’s rules regarding gambling advertisements and inducements. In May, BetMGM was served a Notice of Monetary Penalties totalling CA$48,000 (£29,974/€35,565/US$37,401) for its alleged failure to comply with Standards 2.04 and 2.05 of the Registrar’s Standards for Internet Gaming 1 . That same month PointsBet was also served a Notice of Monetary Penalties amounting to CA$30,000 for alleged breaches of Standard 2.05. Later, in July, the regulator ordered DraftKings to pay a CA$100,000 penalty for similar breaches which took place during May. Standard 2.05 prohibits advertising and marketing materials that communicate gambling inducements, bonuses and credits, except on a licensed operator’s gaming site and via direct advertising and marketing, after receiving active player consent. Meanwhile, Standard 2.04 requires that all operator marketing, advertising and promotions to be truthful, not mislead players or misrepresent products. This includes a clause prohibiting marketing messages which imply the chances of winning increase the more a player spends. The Standards were finalised and announced in September 2021. Detailing the specific violations of these
Marius Adomnica is a partner with Segev LLP in Vancouver. For additional information please contact: 001 604 629 5405 m.adomnica@segev.ca
1 www.agco.ca/lottery-and-gaming/guides/registrars-standards-internet-gaming
36 • IMGL Magazine • July 2022
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