The Alcohol and Gaming Commission of Ontario (AGCO) takes safe gambling seriously and announced a fine for one of the province’s gaming operators last week.
The regulator levied a penalty of $150,000 against PointsBet Canada, alleging that the company allowed a bettor to lose more than $500,000 in less than three months without offering to intervene with some sort of responsible gaming measure or other services. The penalty assessment also includes other similarly-related infractions as well, according to the AGCO.
“In Ontario, iGaming operators have an obligation to proactively monitor their patrons’ play for signs of high-risk gambling, and to take appropriate actions to intervene and reduce the potential for gambling-related harms,” AGCO CEO and registrar Karin Schnarr said. “The AGCO will continue to focus on player protection by holding all registered operators to these high standards.”
Details on the Penalty
The move comes as the regulator alleges that the $500,000 losing player was repeatedly flagged by the operator as possibly engaging in high-risk behavior. That included numerous withdrawal cancellations coupled with significant losses.
“Despite this, no interventions were provided by the gaming site operator during that period,” the AGCO noted. Regulators also argue that PointsBet Canada failed to “appropriately intervene and provide assistance to a player who was potentially experiencing gambling harms.”
The AGCO alleges that the company was also involved with communicating gambling inducements, bonuses, or credits through direct advertising to this player without active consent. PointsBet also failed to enforce a 24-hour cooling-off period when the same player canceled a per-day deposit limit.
Beyond this player, the AGCO alleged PointsBet didn’t adequately train employees so that they “understood the importance of responsible gambling and were adequately trained to respond appropriately to, and assist, players who may be experiencing harm from gambling.”
PointsBet Canada offers online sports betting and casino gaming in Ontario. The company hasn’t commented on the fine and has the right to appeal the AGCO ruling.
Ontario Regulators Also Discuss Advertising Regulations
Along with announcing the PointsBet fine, AGCO also recently discussed the province’s upcoming advertising changes for the industry. Regulators announced a new plan in August that bans the use of athletes and celebrities in sportsbook and gaming advertising.
Ontario regulators met with representatives from DraftKings, FanDuel, and PointsBet to discuss the implementation of the plan, which is expected to take effect next year. The use of celebrity athletes has become common among operators in the province and the meetings were designed to allow for some dialogue between regulators and operators.
At the time of the original announcement, AGCO pledged to provide additional guidance to operators so that they understand and can offer input on the updated advertising standards.
“Since then, we’ve received inquiries and requests for clarification from various groups that will be required to comply with the updated standards,” AGCO spokesman told Gaming new Canada. “As part of our collaborative approach and in an effort to offer additional support, the AGCO will engage with these groups to gain a comprehensive understanding of their questions. Following these meetings, we will publish additional guidance to help registered operators comply with the updated standards.
“The AGCO is committed to working collaboratively with the regulated igaming sector, maintaining high regulatory standards in the public interest, and continuously monitoring the evolving igaming market to address emerging risks to Ontarians.”
The AGCO is also expected to meet with Canadian broadcasters in the coming days as well to offer guidance on the new standards. Officials will also discuss the networks accepting advertising from unregulated gaming sites. AGCO officials hope the efforts help deter minors from engaging in gambling and the updated standards include:
- Creating an obligation for operators and suppliers to cease any advertising and marketing activities that use athletes, whether active or retired, in gaming marketing and advertising.
- Prohibit the use of cartoon figures, symbols, role models, social media influencers, celebrities, or entertainers who could be reasonably expected to appeal to minors. The proposed amendment differs from the current standard, which is applicable to persons that “primarily appeal” to minors.
This is a stark difference from the quickly-expanding U.S. sports betting market. In total, 38 states including Washington D.C. and the U.S. territory of Puerto Rico now offer sports betting in either a live casino, online, or both.
Gaming operators have flooded the airwaves with advertising that often includes celebrities, athletes, and other recognizable figures in their efforts to grab more customers. Since regulating the market in April 2022, Ontario saw a similar approach with Canadian stars like Wayne Gretzky, Connor McDavid, and others lending their names to online betting operators.
The AGCO is now hoping to clamp down on these types of advertising and it appears operators are working to best meet those guidelines.
