The Ontario gaming regulatory body, the AGCO, has levied a substantial financial penalty of CA$100,000 (approximately US$77,432) against DraftKings Canada. The company’s transgression involved violating Ontario’s stringent regulations concerning the marketing and promotional activities related to internet gambling.
It appears that DraftKings exceeded permissible boundaries in promoting its bonus offers and incentives. The company aggressively advertised promotions such as “2:1 odds boosts” across various platforms, including television and social media. However, Ontario has implemented a strict prohibition against such overt advertising of gambling inducements. The province aims to ensure responsible gambling practices, and bombarding the public with enticing offers is deemed counterproductive to this objective.
The AGCO emphasized that this penalty is not merely a symbolic gesture. The regulatory body is actively monitoring all gambling entities operating within Ontario to ensure compliance with the established rules. In a statement, the AGCO affirmed its commitment to upholding the highest standards of responsible gaming and safeguarding players. In essence, DraftKings’ attempts to push the boundaries have resulted in consequences.
Similar to other licensed gaming entities in Ontario, DraftKings has the option to contest the recent decision made by the Alcohol and Gaming Commission of Ontario (AGCO). This appeal process would involve the Licence Appeal Tribunal (LAT), a separate and impartial entity.
This situation isn’t the first instance of the AGCO enforcing regulations within Ontario’s relatively new iGaming sector. In a previous case back in May, BetMGM Canada and PointsBet faced financial penalties – $48,000 and $30,000 accordingly.
Notably, the AGCO determined that both BetMGM Canada and PointsBet violated the same regulation (Standard 2.05) that DraftKings is currently facing scrutiny for.