DraftKings slapped with C$100k Ontario penalty over advertising breaches
Newly-licensed sportsbook operator falls foul of Alcohol and Gaming Commission of Ontario in third such fine since commencement of regulated operations
DraftKings has been ordered to pay C$100,000 ($77,400) by the Alcohol and Gaming Commission of Ontario (AGCO) after breaching the provinces rules on advertising and inducements.
The fine relates to advertisements aired between 19 May and 31 May, which AGCO suggested contain multiple “broad” gambling inducements that included inducements of boosted odds.
These constituted breaches of AGCO advertising standard 2.05, which restricts advertising of inducements, bonuses or credits to operators sites and to direct advertising and marketing issued after player consent is solicited.
So-called ‘broad advertising of bonuses and other gambling inducements’ is prohibited, and operators found to be doing so are at risk of receiving an order of monetary penalty.
The order was issued to DraftKings’ Ontario-based subsidiary, Crown DK CAN Ltd.
The fine is AGCO’s third such order issued, following the issuance of similar penalties against BetMGM and PointsBet in May.
Under Ontarian regulations, any operator served with an order of monetary penalty has the right to appeal to the Licence Appeal Tribunal (LAT), which functions as an adjudicative entity independent of the AGCO and part of Tribunals Ontario.
AGCO CEO and registrar Tom Mungham outlined the regulator’s stance on prosecuting operators who flaunt the province’s standards on advertising.
“The AGCO will continue to monitor the activities of all registered operators and hold them to high standards of responsible gambling, player protection and game integrity,” Mungham said.
“It is in the public interest that we ensure they are meeting their obligations under Ontario’s Gaming Control Act and its standards,” he added.
In a statement provided to EGR, a spokesperson for DraftKings acknowledged the breach.
“We are committed to complying with all applicable regulations in every jurisdiction in which we operate. Upon being informed of the potential issue shortly after our launch, we took immediate action to remove the assets in question,” the spokesperson added.