Ontario regulator clarifies marketing guidelines for operators
AGCO provides additional guidance regarding advertising of signup offers and other promotions
The newly legalized online betting market in Ontario has drawn comparisons to similarly sized US jurisdictions, but one significant area of difference is on the advertising and marketing side, with the Alcohol and Gaming Commission of Ontario (AGCO) recently providing updated guidelines for operators.
In contrast to the US, where operators are largely free to advertize their offers and promotions to potential consumers, Ontario operators are subject to a much narrower mandate, highlighted by a prohibition on any form of direct or indirect advertisement of signup offers or bonuses.
The AGCO outlined those parameters in the ‘Inducements, Bonuses, and Credits’ section of its updated guidance document, stating “public advertising of inducements, bonuses, and credits is strictly prohibited, including targeted advertising and algorithm-based ads.”
The guidelines go on to note that an ‘inducement’ can be classified as “any offer that may persuade or encourage a person to participate, or to participate frequently, in any gaming activity.”
In other words, as opposed to the US – where televised ad campaigns and digital marketing placements routinely plug various types of deposit bonuses and free bet incentives tied to signing up for a sportsbook account – operators in Ontario are prohibited from drawing attention to any form of similar offers.
Examples of relevant inducements include “signup offers, deposit offers, offers of a reward, bonus or ‘boosted’ odds, refund/stake-back offers, multi-bet offers, or winnings paid on losing bets,” according to the AGCO, which only allows those types of offers to be displayed on an operator’s website or app.
Indirect inducements such as “the display of promotional codes and/or general references that invite individuals or the general public to learn more about inducements on the gaming site” are also not permitted.
In order for an operator to purvey any of the aforementioned inducements via direct marketing, a player needs to formally consent to receiving them on the operator’s platform.
Given that a handful of early movers in Ontario – including BetMGM, FanDuel, and PointsBet, among others – operate primarily in the US, the stark difference in marketing regulations undoubtedly represents a challenge they must be mindful of and overcome.
A total of 13 operators had registered with the AGCO as of April 12.