The Alcohol and Gaming Commission of Ontario (AGCO) has imposed a $100,000 penalty on DraftKings for alleged violations related to advertising and inducements.

{0}
Mark Keast Profile Picture

During the recent Canadian Gaming Summit held in Toronto, the AGCO received significant praise from industry experts for its management of the newly regulated gaming environment.Ontario sports betting market.

On Thursday, the AGCO revealed that it had fined the entity involved $100,000 due to claims of improper advertising and inducement practices, leading to a noticeable shift in perceptions in certain sectors.DraftKings Canada An industry insider described the fine as merely a 'parking ticket', indicating a level of dissatisfaction towards the AGCO's actions.

A press release from AGCO highlighted that Crown DK CAN Ltd., which is DraftKings Canada's parent company, violated Standard 2.05 of the Registrar's Standards for Internet Gaming by promoting gambling inducements during the last two weeks of May, including enticing boosted odds of 2-1.

These promotions were reportedly disseminated broadly through various media platforms, including television and social media, as noted by AGCO in their release.

With this latest action, DraftKings Canada becomes the third operator to face penalties for suspected infractions in their advertising strategies.

You can take control of your betting options, manage your funds with a unified wallet, and enjoy seamless deposit experiences.PointsBet Canada and BetMGM Canada were fined in early May by the AGCO.

BetMGM Sports
For detailed terms and conditions, visit BetMGM.com. Participants must be 19 years or older. Available only in Ontario. This offer is for new customers and all promotions are contingent on fulfilling qualification and eligibility criteria. Rewards are awarded as non-withdrawable bonus bets, which expire after seven days. Please gamble responsibly. If you or someone you know needs help, reach out to ConnexOntario at 1-866-531-2600 for free, confidential advice.
The primary concern voiced by the industry source was the disproportionate amount of the fine compared to the potential new customers DraftKings Canada might have attracted through these direct inducements. Many complaints had reportedly been lodged with the AGCO regarding this matter. Additionally, the timing of the advertisements, particularly over the May 24 holiday weekend when many were out of office, was highlighted.

Size of Fine Questioned

A representative from DraftKings Canada remarked in a statement on Friday, 'We are dedicated to adhering to all relevant regulations in every jurisdiction we operate in. Upon discovering the possible issue shortly after our launch, we took swift measures to eliminate the implicated assets.'

DraftKings Canada went live on May 18 in the Ontario sports betting market.

At last month’s summit, a panel that included Bet99 CEO Jared Beber, attorney Marissa Caldwell from McCarthy Tetrault, and Andrew Stokes, senior director at Maple Leaf Sports & Entertainment’s Global Partnerships Group, discussed the landscape of sportsbook advertising in Ontario, addressing the difficulties of partnerships and promotional strategies, as well as the industry’s adjustments to the regulations prohibiting content built around bonuses. In contrast, in markets like New York, offering bonuses is a competitive edge.

Recognized as an award-winning sportsbook, it offers odds that are competitive with the market.

888 Sports
Participants must be at least 19 years old. Terms and conditions apply. Please gamble responsibly.
Caldwell pointed out that a significant issue is consumer confusion regarding the process of first learning about bonuses solely through the operator's website or through email after registration.

‘Definitely a Shift in Mindset’

'As a lawyer providing guidance [to operators], I often need to advise against promotions and bonuses under Section 2.05,' Caldwell explained. 'However, I have found it encouraging to see how adaptable participants in the industry have become. While it may be harder to attract customers initially, this presents a chance to develop trust with them. Engaging new customers without offering immediate rewards can highlight what makes your platform unique and foster lasting partnerships instead of focusing solely on the current week's best bonus.'

'Operators who view these regulations as a chance to promote responsible gambling while limiting initial inducements have seen success. Though adopting this new mindset has been challenging, it has become a vital priority for them,' Caldwell added.

Long-term success through fostering customer engagement and experience is a key focus, as emphasized by Beber.

'While acquisition remains essential, maintaining customer loyalty is arguably even more crucial,' he stated. 'We must proactively communicate what sets us apart and craft that narrative.'

Offering flexibility on parlays, a broad range of futures betting, and accommodating high limits.

Caesars Sports
Participants must be 21 years or older. Terms and conditions apply. Please gamble responsibly.
Caldwell clarified that there are explicit prohibitions within the existing standards.

‘Responsive’ Ontario Regulator

'The industry quickly accepted these guidelines,' she mentioned. 'What followed was a wave of enthusiasm and creativity as companies sought to explore what was permissible. Many wanted to determine how to innovate within the established boundaries while still adhering to the regulations. With over 70 operators in the market, there are times when they may move quicker than the regulators.'

'Ontario has demonstrated a responsive regulatory approach. Nonetheless, there will likely be some back-and-forth as the market evolves. Operators are continually adjusting to the shifting circumstances, and this adaptive nature is unlikely to change anytime soon. We will see where all of this leads as we progress further into this new landscape.'

DraftKings Canada has the right to appeal the penalty to the Licence Appeal Tribunal.

Experience online casino games in Ontario that offer excitement and an array of choices.

Fromdeereplanet.com

888 Sports
Participants must be at least 19 years old. Terms and conditions apply. Please gamble responsibly.
Caldwell pointed out that a significant issue is consumer confusion regarding the process of first learning about bonuses solely through the operator's website or through email after registration.
quote

Author

Mark Keast
Mark Keast
iGaming Reporter

Referenced by major media outlets, including:

Find out more about casinos in Ontario that provide instant withdrawals.