INFORMATION BULLETIN No. 68

Effective September 12, 2011, the Alcohol and Gaming Commission of Ontario (AGCO) is employing a risk-based approach to processing applications for gaming registrations
called “risk-based registration” (RBR). 

RBR is one of several AGCO initiatives designed to improve service delivery to clients and refocus decision-making and the allocation of resources based on systematic assessments of risk. A risk-based approach reflects a general evolution in best practice thinking about effective regulation and supports a broader transition underway in the gaming sector toward a less prescriptive and more standards-based regulatory approach. 

RBR has two main goals:

  1. To improve overall service delivery to AGCO clients by streamlining the application process and allowing the registration of lower risk applicants to be processed more quickly; and
  2. To target AGCO resources on those applicants who represent a higher level of risk to the integrity of the gaming industry and the broader public interest.

 
Risk-Based Process

Under RBR, all applications are evaluated using a two-stage process to determine an applicant’s suitability for registration. The first stage is the initial risk assessment, and is meant to establish basic eligibility for registration and to determine whether a more in-depth investigation is necessary.

Those applicants identified as lower risk may be approved for registration without the need for additional information or personal interviews by AGCO investigators.

  • An individual may be deemed lower risk, for example, because of the nature of his or her job function (e.g. restaurant server, cleaning or parking services, etc.) or because of a longstanding record of compliance with the law, among other things.  

Higher risk applicants may be asked to provide more in-depth information and/or submit to an interview before a decision is made whether or not to issue their registration. 

  • An individual or business may be deemed to be at higher risk of non-compliance with the law if, for example, they have a history of criminal conduct, regulatory non-compliance, or had registrations refused or suspended in the past. The type of goods or services provided by a supplier (e.g. gaming-related versus non-gaming related) or whether an individual exercises control over assets or has ongoing access to sensitive areas of a gaming facility are other factors that may cause an applicant to be considered higher risk than others.  

Risk-Based Criteria

The initial risk assessment involves the review of an applicant’s completed application materials as well as information obtained based on a standard background check. This information is evaluated based on five criteria which are considered key indicators of an individual’s or business’s appropriateness to be registered. 

The five criteria related to individuals (e.g. employees) applying for a gaming registration are:

  • Honesty and integrity
  • Financial background
  • Compliance with the law
  • Job function
  • Employment history

The five criteria related to businesses (e.g. suppliers) applying for a gaming registration are:

  • Honesty and integrity
  • Financial responsibility
  • Compliance with the law
  • Registration type
  • Financial gain from registration

Implementation timing

RBR will be effective province-wide on September 12, 2011 and will apply to all gaming registration categories, except for two – lottery retailers and break open ticket sellers.
Due to the large volume of registrants in these categories, implementation of RBR for lottery retailers and break open ticket sellers will follow in 2012.

Questions

For questions about risk-based registration or your specific gaming registration, please contact the AGCO Customer Service department at 1-800-522-2876 (toll free in Ontario)
or 416-326-8700 (in the Greater Toronto Area). For frequently asked questions, please see Risk-Based Registration (RBR) FAQs.

 

Line of Business: 
Sector: 
Number: 
68
Document number: 
8068