Most recently, the Alcohol and Gaming Commission of Ontario announced that it has imposed a hefty monetary fine on Score Media and Gaming Inc. The penalty is worth CA$105,000, and the regulator declared that the operator breached Ontario’s responsible gambling and player protection standards.
According to the iGaming watchdog, the fine is tied to several violations of the province’s Registrar’s Standards for Internet Gaming. These standards state that all licensed operators in the province must proactively observe consumer behaviour. Then, intervene if they spot risks of gambling-related issues, and make sure that their employees are trained to help players.
Findings from the Regulatory Examination
After a regulatory review of theScore, the AGCO discovered several breaches of the provincial standards. A customer of theScore allegedly bet CA$2.5 million and then lost CA$230,000 over the span of eight months.
This included around CA$100,000 in the first month of gambling, while displaying frequent, high-stakes play and escalating losses, which, according to AGCO, suggested the potential of gambling-related issues and even harm.
In its statement, the regulator notes that the patron requested bonuses on several occasions, showed loss-chasing behaviour and signs of desperation to the operator’s VIP host. However, the staff failed to properly take action and limit the possibility of high-risk play.
AGCO further states that despite the evident red flags and inaccurate income documentation, theScore only relied on the customer’s self-assessments. Thus, failing to perform meaningful responsible gambling due diligence or intervention.
Ontario Touts a Rigid Responsible Gambling Model
Ontario’s open and competitive market for online gambling and sports betting officially opened in April 2022. With the launch of the sector, AGCO came up with detailed consumer protections to reduce the risks of developing gambling-related issues across players.
With its rigorous standards and direction, AGCO ensures that all operators are held accountable for actively monitoring player behaviour and intervening by taking effective measures. This could help reduce the potential of high-risk gambling activities. The regulatory framework provides Ontarians with a safer gambling environment.
theScore Can Appeal the Decision
Like previous cases of penalised operators, theScore has the opportunity to appeal the regulator’s decision. This can be done to the Licence Appeal Tribunal, which is an adjudicative tribunal independent of the gambling commission and part of Tribunals Ontario.
However, at the time of writing, theScore has not given an indication that it will appeal the penalty.
AGCO’s CEO Shares Input
Dr Karin Schnarr, Chief Executive Officer and Registrar of AGCO, has shared a few words on the recent financial penalty.
“Player protections are a fundamental requirement for any gambling operator looking to conduct business in Ontario. When operators fail to uphold these critical safer gambling standards, they not only betray the trust of their players but also undermine the integrity of Ontario’s regulated igaming market,” said Schnarr.
Failing to Comply with Provincial Standards
In its official statement, AGCO explained that theScore has failed to comply with or implement the following provisions of the standards for responsible gambling:
- 2.01: Licensed operators must execute and comply with policies and procedures to spot, prevent, and limit the risks of gaming-related harm to players.
- 2.10: Operators should have a tool or mechanism to monitor player risk profiles and behaviours, and spot signs of players that can potentially experience gambling-related harm.
- 1. Operators should introduce a risk profile for players who are at high risk of experiencing gambling-related issues..
- 2.12: Operator employees must understand the importance of responsible gambling and how their jobs impact player protection. They should also know the basic concepts of responsible gambling and problem gambling.
- 5. Operator employees must know about the harms associated with gambling and the essential prevention and mitigation methods.
AGCO Sends a Message
The recent incident with theScore highlights Ontario’s strict position on responsible gambling practices. It remains to be seen whether the private gambling firm will exercise its right to appeal the decision. However, AGCO’s message is that protecting players is a non-negotiable part of operating in the province’s regulated market.
Market Continues to Expand
In the meantime, Ontario’s iGaming sector continues to grow larger. This was further confirmed by the latest yearly report from AGCO’s subsidiary, iGaming Ontario.
According to iGO, in its third full fiscal year, the province handled CA$82.7 billion in online wagers, which delivered approximately CA$3.2 billion in gross gaming revenue. The betting volume was an immense 31% improvement on the previous fiscal year. Meanwhile, the revenue was 32% higher.
In the report, iGO broke down the numbers by verticals:
- Casino Products: gambling, or slots, live and computer-based table games, and peer-to-peer bingo, contributed CA$69.6 billion, or 34% more than the 2023-24 fiscal period. Gambling from this vertical hit CA$2.4 billion.
- Sports Betting: Bets accounted for CA$11.4 billion of the handle, or a 17% bump from 2023-24. These numbers included wagers on traditional sports, eSports, proposition and novelty bets, and exchange wagering.
- Peer-to-Peer Poker: wagers reached CA$1.7 billion, a 2% increase from 2023-24. Revenue was CA$66 million, which remained similar to the previous year.
These numbers confirm the latest trends that the province is quickly transforming into a leading hub for online casino gaming. It also calls for stricter iGaming oversight, and the recent fine on theScore highlights just that.
