There will soon be greater separation between the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO), the agencies responsible for regulating and managing online gambling in the province. Until now, iGO has been a subsidiary of AGCO, but provincial legislators passed a law severing that relationship.
On Nov. 6, Bill 216, the Building Ontario For You Act, 2014, received Royal Assent after seamlessly passing its first and third readings.
As a result, iGO will become an entirely standalone agency independent of the AGCO.
The transformative move championed by the Ontario government is expected to come into effect early in 2025.
Separation motivated by conflict-of-interest worries
AGCO regulates all gambling in the province of Ontario and is also the parent of the provincial lottery corporation, Ontario Lottery & Gaming (OLG).
iGaming Ontario is a more recent body. It formed in 2021 to “conduct and manage” Ontario’s open online gambling market, which launched the following year. Like OLG, iGaming Ontario was created as a subsidiary of AGCO, which also regulates its activities.
Ontario online casinos operate as partnerships between private companies and iGO, which directs their activities as required by Canadian federal law. Currently, there are 51 third-party operators and 83 registered, legal online gambling sites in Ontario.
However, both iGO and the province’s legacy online operator, the Ontario Lottery and Gaming Corporation, report to the AGCO.
It’s also worth noting that the latter oversees operations of the 29 retail casinos in Ontario.
So, when the provincial government introduced Bill 216, specifically Schedule 9 – a proposition that revokes the regulation that iGO be an AGCO subsidiary and enacts the iGaming Ontario Act, officially ending that tethered relationship – its prerogative was to eliminate any conflicts of interest within the existing framework.
Independence provides clarity on iGO’s role
Although it seemed to come together quickly, removing iGO from the AGCO’s purview was not a hastily made decision. Instead, it stands as the logical next step in the maturation process of Ontario’s online gambling regime.
The Ontario privatization model has already faced one legal challenge questioning whether iGO’s involvement is enough to meet the legal requirement that Canadian gambling be “conducted and managed” by a government agency. Although it survived that test, separating from AGCO may allow iGO to take a more hands-on approach and quell any lingering doubts.
Come 2025, iGO will have greater autonomy over its decision-making. It will enjoy greater flexibility in adapting to market trends, and perhaps better opportunities to attract operators to the market.
Even with the restructuring, iGO’s goal of creating a robust, safe, and economically fruitful iGaming industry in Ontario remains.
iGO initiates search to replace retiring executive director
The busy times at iGO continue, as the agency is also undergoing a transition in leadership.
Earlier this month, iGO announced that its board of directors began searching for a new leader to replace Executive Director Martha Otton, who will retire at the end of the calendar year.
Otton’s successor will operate under the title of president and chief executive officer.
