AGCO Proposes New Rules Requiring Clear Wagering Terms for No-Deposit Bonuses and Free Spins

27 October 2026

ONTARIO — The Alcohol and Gaming Commission of Ontario (AGCO) is considering new rules that would require online gaming operators to more clearly disclose the wagering requirements attached to no-deposit bonuses and free spin offers.

The proposal, outlined in updated regulatory guidance published last month, would build on advertising restrictions and disclosure requirements that the AGCO implemented for operator marketing activities in 2021. Currently, the AGCO prohibits public advertising of inducements—including bonuses, free spins, and similar offers—in Ontario except on an operator's gaming platform or through direct marketing to players who have opted in to receiving such promotions.

AGCO’s Current Advertising Rules

The AGCO introduced revised advertising standards for Ontario in April 2022 designed to limit the public promotion of free bets, bonuses, and other gambling incentives. Under these standards, public communications by licensed operators that aren't hosted on a gaming site or sent directly to opted-in players are banned. This prohibition extends to all digital and physical advertisements targeting the general public, including social media, billboards, and promotional events.

"These updated standards aim to reduce Ontarians' exposure to advertising featuring inducements, helping minimize gambling-related harm," AGCO CEO Tom Mungham stated in an official release. "As we've consistently maintained, these regulations prioritize consumer protection—particularly for vulnerable individuals—over operator marketing strategies and revenue goals."

The standards apply not only to public marketing but also to text messages, email campaigns, and other direct player communications. Operators must obtain explicit consent from players for any promotional messaging, including permission to receive special offers. Players retain the right to revoke this consent at any time.

AGCO’s Definition of Inducements

The AGCO has broadened its interpretation of "inducements" to include numerous common industry promotions. Cashback offers and loss rebates now fall under these restrictions, alongside various bonuses offered to both new and returning players.

"Numerous promotion types qualify as inducements under our definition," explained AGCO representative Kaleigh Miller. "Whether a particular offer constitutes an inducement depends on whether it's designed to attract or retain players by providing gambling-related products, services, or benefits."

Beyond traditional bonuses, affiliate marketing programs, social media influencers, and prize draws may also be classified as inducements based on specific contexts.

The Rationale Behind Wagering Requirements Disclosure

The AGCO's proposal specifically mandates clear disclosure of wagering requirements—the playthrough conditions players must satisfy before withdrawing bonus funds—at the point of activating any no-deposit bonus or free spins offer.

This requirement addresses concerns from consumer advocates and public health professionals that opaque bonus policies represent one of the most effective tools casinos use to attract players and prolong unprofitable gambling behavior. A 2022 University of Waterloo study by researchers Nancy Greer and Markus Kopf highlighted key concerns in this area:

"The true impact of gambling advertisements remains understudied. Gambling marketing faces fewer restrictions than other consumer sectors. The industry systematically targets problem gamblers, using incentives to initiate or escalate gambling activity—ultimately leading to greater losses and more severe gambling-related issues."

The study argues that given the significant harms associated with problem gambling, policies relying solely on consumer education may prove insufficient. While clear bonus requirement disclosures represent an important step, the AGCO aims to reduce the pool of players tempted by aggressive offers through comprehensive reform of promotional communications.

Ontario Among the First to Prohibit Public Bonuses Advertising

The AGCO states that Ontario stands as the only North American jurisdiction—and among few globally—that bans public advertising of bonuses and similar inducements. In testimony before the Senate Standing Committee on Social Affairs last spring, the regulator characterized this approach as unprecedented in North America, though comparable to measures in Australia and several European nations.

"Bonus offers have become central to modern online gambling operations, representing one of operators' most effective customer acquisition tools," the AGCO noted in its 2023 Senate submission. "Research confirms that gambling advertisements featuring inducements—particularly welcome bonuses and competitions—demonstrate exceptional effectiveness at attracting and retaining players."

Opt-In Consent for Direct Marketing Campaigns

Ontario permits operators to incorporate bonuses in targeted marketing campaigns provided they've secured prior opt-in consent from recipients. Players who don't actively consent to promotions cannot receive them.

AGCO spokesperson Kaleigh Miller emphasized that ensuring transparency and informed consent remains fundamental to Ontario's approach to gaming marketing regulation.

"This focus on disclosure and opt-in protocols ensures players only encounter promotions they genuinely want," she explained. "Combined with banning mass-market bonus advertising, this approach significantly reduces unwanted exposure to gambling inducements across Ontario."

The AGCO clarified that some restricted promotions can still be offered through direct channels—for instance, while multi-leg betting promotions can't be publicly advertised, operators may present them to opted-in players.

Update on Casino Days Penalty

In 2022, the AGCO imposed sanctions on Ontario operator Casino Days after discovering a promotion requiring $2,000 deposits and $70,000 in wagers to unlock a $5,000 bonus. Media reports compared the offer's structure to predatory practices in other industries.

The promotion necessitated maintaining individual bets under $5 throughout the wagering process. Casino Days ultimately received a $75,000 penalty. AGCO Director of Investigations Roy Murphy confirmed the promotion ran for nearly six months before regulatory intervention.

"While this marks our first public enforcement action regarding bonus promotions, it certainly won't be our last," Murphy stated. "All licensees must exercise diligence ensuring compliance, particularly by avoiding misleading or potentially harmful bonus structures."

Averting Problem Gambling in Ontario

The Centre for Addiction and Mental Health identifies problem gambling through multiple behavioral indicators including chasing losses, gambling with increasing amounts, lying about gambling activities, and experiencing mood disturbances related to gambling outcomes.

These proposed AGCO regulations, though still in draft form, aim to help reverse concerning gambling participation trends in Ontario while aligning with national frameworks prioritizing harm reduction.

"These rules represent our commitment to protecting vulnerable Ontarians from gambling-related harm," said AGCO's Kaleigh Miller. "By establishing clear boundaries around inducement-driven marketing, we can help address factors that contribute to at-risk gambling behaviors."