On December 6, 2022 we wrote about the decision of the Alcohol and Gaming Commission (AGCO) to establish a blanket prohibition on UFC betting. We set out four takeaways and our general view was that the decision to prohibit UFC demonstrated the AGCO’s commitment to player protection and integrity. We also noted that the prohibition would likely be temporary and, that as long as the ban was in place, the Ontario unregistered market would get a boost.
It didn’t take long for the AGCO to restore UFC betting, but it took until now for us to write about it. Below is a summary of what happened, including our final thoughts.
As a refresher, in December 2022, the AGCO announced a blanket prohibition on UFC betting “in order to protect the betting public” due to “concerns about non-compliance with AGCO’s betting integrity requirements”. The AGCO’s reasoning for banning UFC bets was that the UFC “does not prohibit all insiders from betting on UFC events”. An insider includes an athlete’s coaches, managers, handlers, trainers, medical professionals, or others with access to non-public information. This contravened the Standards, which require that (i) rules and codes be prescribed and enforced that include prohibitions on betting by insiders; and (ii) there are adequate integrity safeguards in place to mitigate match-fixing and any other activity that may influence the outcome of bet upon events.
In its press release, the AGCO stated that “once necessary remedial steps have been taken, they [operators] may provide information demonstrating that UFC bets or betting products meet the Standards.”
On January 19, 2023 the UFC and U.S. Integrity (a sports-integrity solutions provider) announced a comprehensive agreement for betting monitoring services. The press release specifically mentions addressing the AGCO’s concerns and working with the AGCO to ensure the integrity of the UFC. On that same day, the AGCO reinstated betting on UFC.
The AGCO could have ignored the UFC betting controversy or banned UFC betting, drafted a press release, and moved on. By taking steps to work with the UFC to ensure that the organization met the standards for reinstatement, the AGCO demonstrated a strong commitment to player protection and betting integrity.
There have been additional sports integrity incidents that have caught the attention of the AGCO. None have led to action as drastic as a blanket prohibition. We’ve worked with sports leagues to draft and review integrity standards and have worked with operators and suppliers to address and respond to regulatory concerns surrounding sports betting matters. Reach out to Jack and we’ll be happy to answer any betting integrity questions you have!
