DraftKings in Canada received a significant penalty of $100,000 in Canadian currency (approximately $77,400 in USD) from the Alcohol and Gaming Commission of Ontario (AGCO). The reason? They violated regulations regarding marketing and promotional activities.
Apparently, DraftKings was overly enthusiastic about attracting new players and went overboard with their advertising campaigns. The AGCO specifically cited their “2:1 odds enhancements” which were prominently displayed across television and social media platforms. The issue is, Ontario has stringent regulations against this form of promotion, particularly when it’s so aggressive. They aim to ensure that gambling remains a choice, not something individuals feel coerced into.
The AGCO emphasized that this is not a minor reprimand. They are committed to safeguarding Ontarians from forceful gambling advertisements and anticipate all operators to adhere to the established guidelines.
Similar to other registered providers in Ontario, DraftKings can challenge the ruling made by the Alcohol and Gaming Commission of Ontario (AGCO). An independent entity, the Licence Appeal Tribunal (LAT), would preside over the appeal.
This recent action isn’t the first instance of the AGCO imposing financial sanctions within Ontario’s fairly new iGaming sector. In a comparable case concerning the same regulation, BetMGM Canada and PointsBet received penalties – $48,000 and $30,000 accordingly – in early May.
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