In a significant development, the Alcohol and Gaming Commission of Ontario (AGCO) has issued a directive mandating all Ontario-registered sportsbook operators to immediately cease offering and accepting wagers on World Boxing Association (WBA) events. This decision comes amidst growing concerns surrounding the integrity of WBA-sanctioned boxing matches, particularly related to match-fixing and insider betting.

Alcohol and Gaming Commission of Ontario (AGCO)

The Background: Suspicious Betting Activity

Since December 2023, the AGCO has been conducting a thorough review prompted by suspicious betting activity observed during a WBA-sanctioned title fight between Yoenis Tellez and Livan Navarro in Orlando, Florida. Reports of irregular betting patterns, specifically surrounding the duration of the bout exceeding 5.5 rounds, were flagged by independent integrity monitors and detected by a registered iGaming operator in Ontario.

Allegations of Match Fixing 

Media disclosures further revealed substantial wagers placed by Tellez’s manager on the fight lasting beyond 5.5 rounds at a Florida casino. The fight concluded with Tellez delivering a knockout to Navarro in the 10th round, raising concerns about the integrity of the match.

AGCO Investigation and Determination

Following an extensive inquiry involving coordination with various stakeholders including the WBA, registered gaming operators, independent integrity monitors, and regulatory bodies from other jurisdictions, the AGCO has determined that wagers associated with WBA events fail to meet the Registrar’s Standards for Internet Gaming.

Oversight of Sports Betting Products and Insider Betting Prohibitions

The directive issued by the AGCO stipulates that Ontario-registered gaming operators must ensure that the sports betting products they offer are associated with events effectively supervised by a recognized sports governing body. This governing body must maintain and enforce codes of conduct prohibiting betting by insiders.

Lack of Evidence and Requirement for Reinstatement

Despite efforts by operators to demonstrate compliance, they failed to provide evidence to the AGCO indicating that the WBA effectively prohibits insider betting or investigates allegations of potential match-fixing. As a result, the AGCO has informed registered operators that the reinstatement of WBA betting products in Ontario necessitates the demonstration of effective event supervision by the WBA to align with regulatory standards.

Historical Precedent and UFC Betting

In December 2022, similar issues led to the suspension of betting on UFC events in Ontario. However, the UFC took proactive measures to amend policies and implement new protocols, subsequently reinstating betting in the province. The successful reinstatement of UFC betting serves as a precedent for the potential reinstatement of WBA betting products, contingent upon the implementation of appropriate safeguards against match-fixing and insider betting.

Statement by Dr. Karin Schnarr

Dr. Karin Schnarr, AGCO Registrar and CEO, emphasized the importance of maintaining integrity safeguards in sports betting. She stated, “Ontarians who wish to bet on sporting events need to be confident that those events are fairly run and that clear integrity safeguards are in place and enforced by an effective sport governing body. Knowing the popularity of boxing in Ontario, we look forward to reinstating betting on WBA events once appropriate safeguards against possible match-fixing and insider betting have been confirmed.”

Conclusion: The Directive

The AGCO directive represents a significant step towards ensuring the integrity of sports betting in Ontario. By mandating the suspension of WBA betting products, the AGCO underscores the importance of maintaining clear integrity safeguards in the sports betting industry. As stakeholders work towards reinstating betting on WBA events, the focus remains on implementing effective event supervision and aligning with regulatory standards.

FAQs: AGCO Directive Shuts Down WBA Betting

1. How does the AGCO directive affect sportsbook operators in Ontario?

The AGCO directive mandates all Ontario-registered sportsbook operators to immediately cease offering and accepting wagers on World Boxing Association (WBA) events.

2. What prompted the AGCO to issue this directive?

The directive was prompted by suspicious betting activity observed during a WBA-sanctioned title fight, raising concerns about the integrity of WBA-sanctioned boxing matches.

3. What are the implications for the sports betting industry in Ontario?

The directive aims to ensure that sports betting products offered in Ontario meet the Registrar’s Standards for Internet Gaming, emphasizing the importance of integrity safeguards.

4. Is there a historical precedent for such directives in Ontario?

Yes, similar issues in the past, such as the suspension of UFC betting, have led to directives aimed at safeguarding the integrity of sports betting in the province.

5. What is required for the reinstatement of WBA betting products in Ontario?

The reinstatement necessitates the demonstration of effective event supervision by the WBA to align with regulatory standards set by the AGCO.

6. How does the AGCO envision the future of sports betting on WBA events in Ontario?

The AGCO aims to reinstate betting on WBA events once appropriate safeguards against possible match-fixing and insider betting have been confirmed.