The Ontario Alcohol and Gaming Commission (AGCO) levied a substantial penalty against DraftKings Canada, totaling $100,000 in Canadian currency (equivalent to roughly $77,432 USD), for infractions related to promotional activities and advertising practices. It appears they overstepped the boundaries of acceptable conduct.
The AGCO determined that the company violated the Registrar’s Standards for Internet Gaming, specifically citing Standard 2.05. This particular regulation emphasizes fairness by prohibiting companies from disseminating enticing bonus offers and incentives across their digital platforms and marketing collateral without obtaining explicit consent from the player beforehand.
However, DraftKings proceeded to publish a series of materials that the AGCO deemed “widespread gambling enticements,” including an alluring promotion offering a 2:1 odds enhancement. The AGCO deemed this unacceptable, particularly because such advertising tactics are strictly forbidden in Ontario. The company even went so far as to disseminate these promotions via television broadcasts and social media channels.
The AGCO emphasized that these regulations are in place to safeguard the residents of Ontario from excessive exposure to gambling inducements. They explicitly stated that “extensive public dissemination of bonuses and similar gambling incentives is strictly prohibited within Ontario.”
Tom Mungham, serving as both CEO and Registrar of the AGCO, underscored the message: “The AGCO remains committed to overseeing the operations of all registered operators and upholding stringent standards of responsible gaming conduct, player protection, and game integrity.” He stressed the importance of adherence to the regulations stipulated in Ontario’s Gaming Control Act and associated standards, all in the interest of safeguarding the public.
Similar to other authorized providers, DraftKings has the option to contest this sanction. They have the right to elevate the matter to the License Appeal Tribunal, an autonomous entity that collaborates with the Alcohol and Gaming Commission of Ontario (AGCO).
This instance isn’t isolated within Ontario’s iGaming sector. Previously this year, BetMGM Canada and PointsBet also received financial penalties, amounting to $48,000 and $30,000 correspondingly.
Notably, the AGCO cited an identical concern, an infringement of Standard 2.05, when imposing fines on BetMGM and PointsBet. This pattern suggests a persistent challenge within the industry.
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