DraftKings in Canada received a significant financial penalty of $77,400 from the Ontario regulatory body for alcohol and gaming (AGCO). The reason? They violated regulations regarding the promotion of wagering activities within Ontario. Essentially, DraftKings was found to be publicizing special offers and enticements, such as enhanced odds promotions, which are strictly prohibited unless explicit consent is obtained from each individual participant. These advertisements were disseminated widely through television broadcasts and social media platforms, a practice that did not sit well with the AGCO. The AGCO emphasized that their priority is safeguarding individuals and ensuring responsible gambling practices. They are closely monitoring all gaming entities to guarantee adherence to regulations and the prioritization of responsible gambling.
Similar to other registered gaming entities in Ontario, DraftKings has the option to contest the ruling issued by the Alcohol and Gaming Commission of Ontario (AGCO). This appeal process would be conducted through the Licence Appeal Tribunal (LAT), an impartial adjudicative entity.
This recent action is not the first instance of the AGCO enforcing regulations within Ontario’s relatively nascent iGaming sector. In early May, both BetMGM Canada and PointsBet incurred financial penalties – $48,000 and $30,000, correspondingly.
Notably, the AGCO referenced breaches of Standard 2.05 when imposing those sanctions on BetMGM Canada and PointsBet, the identical standard for which DraftKings is currently under scrutiny.
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