What Happened?
The AGCO imposed the fine after determining that BetMGM Canada, through two of its marketing affiliates, offered cash bonuses to members of the public in exchange for opening accounts. One such instance occurred at a major national trade conference. According to the AGCO’s Registrar’s Standards for Internet Gaming, [1] marketing materials that advertise gambling inducements, bonuses, or credits must be limited to the operator’s gaming site or direct, consent-based communication.[2] Additionally, gaming operators are held accountable for the actions of any third parties they contract.[3] Although BetMGM Canada itself did not directly breach these marketing provisions, the actions of its affiliates did, which ultimately prompted the penalty from the AGCO.
Significance of the Event
While this incident appears isolated, it serves as a clear reminder that all online gaming operators must regularly review and adjust their marketing practices – and those of their third-party contractors – to comply with regulatory requirements. The AGCO’s decision highlights the potential financial and reputational risks associated with even just small deviations from the rules. Gaming operators should note the importance of having strong internal controls and regularly consulting with legal experts to ensure that every promotional initiative fully complies with the applicable regulations.
Complying with the Marketing and Advertising Standards
In the Ontario market, adherence to the AGCO’s Registrar Standards for Internet Gaming (the “Standards”) is crucial for gaming operators. Standards 2.03 to 2.07 specifically address marketing and advertising compliance. Among these requirements, operators must ensure that gambling inducements, bonuses, and credits are not communicated unless an exception applies, such as when direct advertising and marketing occur after obtaining player consent. This framework underscores the AGCO’s commitment to responsible gaming practices and the protection of vulnerable populations.
How We Can Help
Segev LLP has extensive experience guiding our clients through the complexities of the gaming regulatory environment. Our comprehensive services include compliance audits and strategic legal advice tailored specifically to the iGaming industry. Whether you are launching a new marketing campaign or reassessing existing practices, our experienced team is ready to support your operations and reputation. With the recent tabling of Bill 48 in Alberta[4] paving the way for an Ontario-style regulated iGaming market, prospective Albertan gaming operators are especially encouraged to consult with our gaming lawyers in order to prepare effectively, and ensure ongoing compliance.
If you have questions about Gaming and Gambling, we would love to hear from you. Please do not hesitate to contact us at 1-800-604-1312 or https://segevllp.com/contact-us/.