The Ontario Liquor Control Board (OLCB) has levied penalties on BetMGM and PointsBet for purported breaches of regulations concerning promotional materials and inducements.
BetMGM Canada was slapped with a total of $48,000 (C$29,974/£35,565/€37,401) in fines for purported violations of Registrar Internet Gaming Standard 2.04 and 2.05. PointsBet Canada was also hit with a $30,000 fine for alleged violations of Standard 2.05.
Standard 2.05 prohibits the dissemination of advertising and marketing materials that include gambling incentives, bonuses, and points, unless they are on the licensed operator’s gambling website and through direct advertising and marketing, after obtaining the agreement of active players.
Meanwhile, Standard 2.04 stipulates that all operators’ marketing, advertising, and promotional activities must be truthful and not deceptive to players or misrepresent the product, including the requirement that materials must not suggest that players have a higher chance of winning the more they spend.
In the ninth month of 2021, the Canadian province of Ontario unveiled new online gambling rules and formally launched its authorized online gambling marketplace on the fourth day of April this year.
The Alcohol and Gaming Commission of Ontario (AGCO) has accused BetMGM Canada of breaching these regulations by releasing a “250,000 dollar grand opening party” advertisement that featured a contest where the victor would receive a 100,000 dollar casino bonus. The advertisement was first released on the fourth of April and was re-released on the eleventh of April.
BetMGM Canada also released a “Bellagio” advertisement that included an offer of a 10 dollar casino bonus for a 25 dollar wager. The advertisement was first released on the fourth of April and was re-released on the sixth and eighth of April. Additionally, the operator posted “Jimi Hendrix Free Spins Friday” multiple times on Twitter on the eighth of April, offering a chance to win 100 free spins.
According to the AGCO, these three instances are considered violations of regulation 2.05.
BetMGM Canada was also found to have violated regulation 2.04 by releasing a tweet on the tenth of April that claimed “the more you wager, the greater your chances of winning.”
Meanwhile, PointsBet Canada was flagged for alleged violations of regulation 2.05, the first violation being the posting of free-to-play game incentives on GO trains and various products between the fourth and twenty-first of April.
Furthermore, the AGCO stated that PointsBet Canada posted free-to-play game incentives at two GO train stations between the fourth and seventeenth of April.
Tom Mungham, the chief executive and registrar of the Alcohol and Gaming Commission of Ontario (AGCO), declared: “The AGCO holds all registered operators to rigorous standards of responsible gaming, player safety, and game integrity, and keeps a close eye on their activities to ensure they are meeting their commitments under the Gaming Control Act and regulations.”
Both BetMGM Canada and PointsBet Canada have the authority to appeal to the Licence Appeal Tribunal, an impartial adjudicative body separate from the AGCO, which is part of the Ontario Court system.
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