The Alcohol and Gaming Commission of Ontario (AGCO) has ordered FanDuel to pay a hefty penalty for the operator’s failure to detect and report suspicious betting activity.
On Thursday, the AGCO announced it fined FanDuel Canada $350,000 after an investigation identified wagers placed in Ontario that the regulator said indicated instances of match-fixing.
The probe centred around 144 bets placed between October 2024 and November 2024 by three Ontario player accounts on Czech Table Tennis Star Series matches. The AGCO said that its investigation found that FanDuel failed to take proper action, allowing the three player accounts to place suspicious wagers for several weeks.
According to the AGCO, FanDuel did not meet its obligations to identify unusual and suspicious betting behaviour.
The AGCO stated that its probe found that FanDuel should have taken action against instances of synchronized wagering across the three player accounts that led to unusual shifts in betting lines on two specific athletes. The regulator said that one of the “several red flags” that FanDuel should have spotted was the bets’ “implausible and near-perfect win rate.”
The AGCO’s reporting requirements for suspicious activity
AGCO Chief Operating Officer Dave Phillips explained the rationale for the fine in more depth in an interview with Canadian Gaming Business.
The AGCO requires licensed operators to report all suspicious wagering activity to Independent Integrity Monitors that share the unusual behaviour with other operators in the province, allowing them to monitor their own services to determine whether illicit wagering is also taking place on their platforms. The Independent Integrity Monitors also share suspicious betting activity reported by operators to leagues and governing bodies.
“In an era of heightened scrutiny on sports integrity, iGaming operators must be vigilant and proactive in detecting suspicious betting activity and taking appropriate steps to protect their patrons,” said AGCO CEO Dr. Karin Schnarr. “We will continue to hold all regulated operators accountable to these standards. Protecting fair play is essential to maintaining public trust.”
FanDuel believes it took necessary reporting steps
FanDuel took a different tone to the AGCO, contending that it took the necessary steps in detecting and reporting the unusual betting behaviour in Ontario. FanDuel pointed to its integrity monitoring system, which it said properly detected the wagers.
“Our integrity monitoring program enabled us to be the only operator to proactively identify, investigate and report this suspicious activity to integrity monitors. FanDuel then proactively reported this activity to the AGCO,” a FanDuel spokesperson told Canadian Gaming Business.
The Flutter-owned operator also voiced its displeasure with the AGCO’s decision to levy a monetary penalty.
“As an operator that prides itself on the trust we have built with our stakeholders, we do not feel that this action accurately reflects the commitment and investment we have consistently demonstrated regarding protecting the industry, our customers, and the integrity of sport,” added FanDuel. “We are also concerned it could discourage the industry from engaging in best efforts to identify, investigate, and report on irregular activity.”
FanDuel could appeal, police launch criminal probe
FanDuel has the opportunity to appeal the AGCO’s monetary penalty within 15 days to the License Appeal Tribunal (LAT), which is independent of the AGCO. Entities that appeal monetary penalties typically receive a decision from the LAT within 40 days of appeal submission.
FanDuel has not yet made a decision on whether it will appeal the AGCO’s penalty.
Meanwhile, the Ontario Provincial Police (OPP) confirmed to Canadian Gaming Business that it has begun a criminal investigation into the incident. The OPP Investigation and Enforcement Bureau (IEB), which is embedded within the AGCO, will conduct the probe.
AGCO penalizes another licensed sports betting operator
The AGCO also recently levied a monetary penalty against Canadian operator theScore.
The commission imposed a $105,000 penalty for theScore failing to adhere to responsible gaming and player protection standards. An AGCO probe determined that theScore failed to detect potential gambling-related harm when a customer wagered $2.5 million with the operator, resulting in roughly $230,000 in losses over an eight-month period.
