DraftKings Fined in Ontario for Aggressive Advertising Tactics
A well-known internet wagering platform, DraftKings, recently faced consequences from Ontario authorities for pushing the boundaries of advertising regulations. The company received a significant financial penalty, approximately $77,000 in US currency, for aggressively targeting prospective users with promotional offers and incentives. This practice is strictly prohibited in Ontario, where a more restrained approach to gambling advertising is favored.
The problem arose from DraftKings’ excessive use of enticing tactics, such as “2:1 odds enhancements,” to attract customers. These alluring propositions were disseminated through various channels, including television and social media platforms. The Alcohol and Gaming Commission of Ontario (AGCO) intervened, emphasizing that while gambling is permitted, responsible gaming and safeguarding individuals from potential harm are top priorities. The AGCO firmly stated that these regulations are in place for a reason and that they are closely monitoring all gaming entities to ensure compliance.
Similar to any licensed organization in the gaming industry, DraftKings has the option to contest the penalty. They have the right to lodge an appeal with an impartial body known as the Licence Appeal Tribunal (LAT). This entity operates under the umbrella of the Alcohol and Gaming Commission of Ontario (AGCO).
This recent action isn’t the first instance of the AGCO imposing fines on businesses operating within Ontario’s emerging online gambling sector. Both BetMGM Canada and PointsBet faced similar consequences. In the early days of May, they were directed to remit payments of $48,000 and $30,000, respectively.
The AGCO’s official statement indicated that both BetMGM Canada and PointsBet were found to be in violation of Standard 2.05, the same regulation that DraftKings is alleged to have breached.
