Unibet fined in Ontario over bonus inducement ads

Since April 1,Ontario has been enjoying interest from hundreds of iGaming companies. The reason? The Canadian province officially launched its regulated gambling industry, opening the sluice gates for some of the biggest names in the market. Now, more than four months after the launch, regulators have stepped in with enforcement action.

The Registar of the Alcohol and Gaming Commission of Ontario (AGCO) served an Order of Monetary Penalty (OMP) to Unibet ON Inc. In layman’s terms, Unibet has been fined by the provincial regulator. The CA$48,000 fine is the latest penalty issued to a company under the new regulatory regime in the province.

Previously, BetMGM and PointsBet were fined over similar breaches that concerned their advertisement in the province. They are hardly the only ones either. DraftKings was fined CA$100,000 in July as well. AGCO CEO and Registar Tom Mungham explained:

We expect all registered operators to achieve and maintain the high standards of responsible gambling, player protection and game integrity. The AGCO will continue to monitor these gaming sites’ activities, and ensure they are meeting their obligations under Ontario’s Gaming Control Act and the Standards.

The fine has to do with a brief period between May 19 and May 22, 2022, during which Unibet ON Inc. is said to have aired bonus inducements, which extended "generous welcome offers." This act was contrary to Standard 2.05 which states that bonuses may not be advertised to new customers without their explicit consent.

In a statement posted on AGCO’s website, the regulator explained that the watchdog was determined to establish high standards of security, the protection of minors, responsible gambling, and overall integrity. The standards, the regulator added, were there to protect Ontarians.

Part of those restrictions concern promotions and bonuses, which are prohibited under Standard 2.05 unless a consumer has confirmed that they wish to receive such inducements. Lack of such consent breaches the rule.

Unibet’s penalty is not final, though, as the company may seek to appeal to the License Appeal Tribunal, an independent body set to mediate over conflicts between companies and the gambling regulator.

Bonus inducements are a sensitive topic in many jurisdictions. Canada has had a lax regulatory regime. Prior to April 1, many companies were allowed to operate without a license. They built up a good database of consumers. New entrants are admittedly at a disadvantage as they have some catching up to do but must follow much stricter rules when it comes to player acquisition.

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