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This is clearly false for finite groups (take the union of the two coordinate axes in $\mathbb A^2$, with the involution that switches the two axes. For a connected example, embed the cyclic group into $\mathbb G_\mathrm{m}$, and consider the induced action.
It is easy to give examples of smooth proper hyperbolic DM stacks, with plenty of effective pluricanonical divisors, whose moduli spaces are rational (this already occurs in dimension 1).
I think that the $\mathcal O$ notation comes from the notation for rings of integers in number fields, probably standing for "order" ("Ordnung" in German).