• The Ontario provincial legislature passed the Cannabis Statute Law Amendment Act, giving the AGCO the authority to license, regulate and enforce the sale of recreational cannabis through privately run stores in Ontario. For an update on this new AGCO role, see: Licensing and Regulation of Recreational Cannabis.
• The AGCO worked with the Ontario Lottery and Gaming Corporation (OLG) to implement the overall gaming modernization strategy, including transitioning new Casino Operators, and supporting key components of the OLG Player Platform and Lottery Modernization Strategy.
• The AGCO amended policy in support of liquor modernization, including the harmonization of Sunday hours for liquor retailers to sell beverage alcohol from 9 a.m. to 11 p.m. seven days a week. Ongoing strategic and operational advice was provided to government on proposed reforms to the liquor regulatory framework.
• As part of the “Moving Ahead: Horse Racing Regulation in Ontario” project, and following consultation with Ontario’s horse racing industry, the AGCO implemented changes to the Equine Drug Program process and changes to the Rules of Racing, including the introduction of a Temperature Standard for Racetracks. The updated rulebooks were published in fall 2018. A Concussion Management standards-based rule is being piloted during the 2019 racing season.
• The AGCO broadened the Electronic Raffle Regulatory Framework as part of the launch of Phase 2 in November 2018, to reduce the administrative burden on Ontario charities and religious organizations and provide them with greater flexibility when conducting and managing raffles.

• The AGCO continued to focus on measuring performance and ensuring value for money in all programs implemented over the past year. For instance, overall customer satisfaction with iAGCO, the AGCO’s new automated online licensing and registration solution has exceeded the target, with 93% of customers indicating they are satisfied with the new system of contact. The AGCO’s efforts to reach out to stakeholders has also exceeded expectations, with a clear majority feeling engaged or highly engaged. For more information, see Table 3 – AGCO Performance Measures 2018-19.
• Ongoing monitoring of the progress of the current Strategic Plan performance measures continued, with insights employed to better evaluate business performance and regulatory effectiveness.
• A new Regulatory Intelligence and Innovation (RII) strategic framework was developed to further the AGCO’s capacity to generate and use data insights across the agency. As a result, the AGCO is now redesigning and implementing a comprehensive data-driven strategy to strengthen our regulatory approach towards impaired driving.
• A renewed Education, Training, and Awareness (ETA) strategy was launched in 2018-19. This program supports AGCO’s regulatory assurance activities and fosters a proactive, compliance-focused culture within the industries it regulates by enhancing its planning and delivery of educational opportunities to support their compliance with relevant laws and regulations. As part of this renewed strategy, the AGCO has approved some 13 ETA projects, including a new initiative and partnership with Equine Guelph to develop online training in the area of horse welfare.
• The AGCO leveraged risk management methodologies through the continued use and enhancement of an Enterprise Risk Management Framework.  Risks continue to be routinely identified, analyzed, addressed, and monitored across the AGCO.
• The AGCO continued to conduct internal audits and evaluations based on a Board-approved three-year rolling Strategic Audit and Evaluation plan. The plan ensures key risk areas and priorities are examined for alignment with the organization’s strategic objectives and for compliance with applicable requirements. A number of audits and evaluations have been conducted and recommendations have been implemented, leading to strengthened internal controls and improved governance and accountability.
• Enhancement of the AGCO’s Emergency Management Plan Framework continued, including the creation of business continuity plans for new lines of business and modifications to infrastructure to ensure critical systems and information are protected and available in the event of an emergency.

• The AGCO continued to implement a strategic engagement approach across the organization as a staple component of its business process. This strategy has resulted in the delivery of a series of engagement-driven activities aimed at raising stakeholder input and awareness about major corporate initiatives.
• A comprehensive strategy was developed to engage the AGCO’s municipal partners in a focused and coordinated manner. In the first year of the strategy, a municipal webinar series was undertaken to strengthen and formalize the AGCO’s relationship with municipal partners by creating a platform for dialogue and education. Three webinars were held, focusing on the AGCO’s role, charitable gaming and cannabis.
• A number of educational webinar sessions were successfully delivered for industry stakeholders including: Beer, Wine and Cider in Grocery Stores, Horse Racing Integration and Catch the Ace.
• The AGCO continued to collaborate with the OPP, as well as regional and municipal police services currently participating in the Last Drink Program through the ongoing review of program reports and analysis of program data.
• Collaboration and close partnerships with police services, other regulators and municipalities continued to enhance regulatory compliance through the sharing of information and resources.
• The AGCO continued to maintain a collaborative relationship with the Canadian Centre for Ethics in Sport, College of Veterinarians, Canada Border Services Agency, Regulatory Compliance & Enforcement Council, Financial Transactions and Reports Analysis Centre of Canada, Canadian Pari-Mutuel Agency, and the Canadian American Law Enforcement Organization.

• The continued modernization of the AGCO service delivery model through the phased implementation of the iAGCO web-based portal included the implementation of Phases 2 and 3 in 2018. The transition period from paper to online transactions for Phase 2 ended in January 2019, meaning that all liquor-related transactions with the AGCO, including for Liquor Sales Licences, Manufacturer’s and their Representatives, Ferment-on-Premises and Liquor Delivery services, are now exclusively conducted online. Phase 3 went live in November 2018 and included services for Gaming Site Operators, Gaming Assistants, Gaming and Non-Gaming Related Suppliers and Lottery Retailers. All cannabis-related tranactions were immediately launched as digital by default in January 2019 and are conducted exclusively through the online portal.
• A new Complaints and Inquiries Handling Policy was launched in January 2018 to clarify procedures and affirm the AGCO’s intention to use information from complaints and inquiries to support continuous business improvement. 
• As part of the Strategic Communications Plan, and in support of transformation initiatives, the AGCO expanded the reach of its social media activity on Twitter, using that channel for important updates and engagement with the public.
• A new Service Strategy and Experience Branch was established in March 2019, to elevate the agency's service to customers, across all lines of business.

• Under its organizational design initiative, the AGCO continued to examine the optimal structure for the agency and identified a number of opportunities to be more flexible, dynamic, and agile. These efforts will help to ensure the organization is eventually structured to support the best possible delivery of services and strategic priorities while being able to anticipate and respond to future disruption and change.
• The first stage of a Remote Work Arrangement program was launched to provide a flexible structure for employees to occasionally work from an alternate work location, when appropriate to their duties and functions.
• The AGCO NEXT initiative continued to focus on organizational engagement through activities such as NEXT Talks, which were modeled after the popular TED Talks and invited employees to create and deliver a presentation to all staff related to a specific theme.
• In response to recent Employee Engagement Survey results, the AGCO committed to developing action plans to build on two corporate themes: opportunities to have ideas adopted and put into use, and improving the efficiency and effectiveness of work structures and processes.
• The AGCO held its first-ever virtual Town Hall series. Taking a modern, cost-effective approach, the series connected with AGCO staff across the province over the course of one week through a combination of live streaming interactive sessions, themed days with customized content, recorded presentations and an employee social media platform to respond to questions.

The Ontario Legislative Assembly passed the Cannabis Statute Law Amendment Act on October 17, 2018, setting out the legal structure for private cannabis retail in Ontario and providing the AGCO with the authority to license, regulate and enforce the sale of recreational cannabis through privately run stores in Ontario. 

The Cannabis Licence Act, 2018 and its regulations came into force on November 16, 2018.

On December 13, 2018, the Government of Ontario imposed a temporary cap of 25 Retail Store Authorizations across five regions, and as set out in Ontario Regulation 468/18, gave the AGCO the mandate to hold an Expression of Interest Lottery to determine who may apply for a Retail Operator Licence, tied to one of the 25 Retail Store Authorizations. The lottery covered the period of time from January 2, 2019, when the Lottery Rules were published, to December 13, 2019, when Ontario Regulation 468/18 is scheduled to be amended.

The AGCO’s internationally accredited in-house Gaming Laboratory developed a lottery software program for the selection of the lottery applicants. Using state-of-the-art equipment to test and analyze the integrity of all lottery, casino and internet gaming systems used in Ontario, the Laboratory was well positioned to develop this program. It also submitted its software program for independent testing and certification from accredited, independent testing laboratory Gaming Laboratories International.

The AGCO retained the services of KPMG to act as a fairness monitor to oversee the lottery and ensure it was conducted fairly and according to the established Lottery Rules. On January 11, 2019, the AGCO held the lottery. There were approximately 17,000 entries. On February 21, 2019, KPMG issued its report regarding the first phase of the lottery, concluding that the process during that phase was fair to applicants and potential applicants. 

On February 7, 2019, the AGCO Board of Directors approved CannSell as the authorized cannabis retail employee training program for all employees of cannabis retail stores in Ontario.

The AGCO developed a regulatory framework, compliance and audit processes and Registrar’s Standards for Cannabis Retail Stores to ensure that stores operated in the public interest. In addition, the AGCO prepared its iAGCO online portal to process all applications for cannabis-related licences and authorizations.

Ten cannabis retail stores were licensed and scheduled to open on April 1, 2019, in support of the Government of Ontario’s objective of having licensed cannabis retail stores beginning to operate on that date. The AGCO continues to work with, and support the Government of Ontario on the regulation of cannabis, including the opening of additional licensed stores.

The government has committed to modernizing the rules for the retail and consumption of beverage alcohol in Ontario, and in November 2018, announced that it would develop options to let corner stores, big-box stores, and more grocery stores, sell beer and wine.

Shortly thereafter, the government launched a public consultation on the sale and consumption of beverage alcohol. Over 33,000 consumers, businesses, beverage alcohol producers, public health and safety organizations, retailers, restaurants and bars provided feedback that will inform the government’s plans for liquor reform.

Consistent with the government’s objective of improved consumer choice and enabling opportunities for businesses, in December 2018, the AGCO began allowing the Beer Store, the LCBO, off-site winery retail stores and authorized grocery stores to sell beverage alcohol from 9 a.m. to 11 p.m., seven days a week. Prior to that change, alcohol could only be sold between 9 a.m. and 11 p.m. Monday to Saturday, and from 11 a.m. to 6 p.m. on Sunday.

In addition, as of March 31, 2019, the AGCO has provided 363 grocery stores across Ontario with authorizations to sell beer, cider and/or wine. Of these:

• 70 are authorized to sell beer and wine only
• 293 are authorized to sell beer and cider only.

Of these stores, 68 also have a wine boutique authorization, which allows an independent wine boutique to operate within a grocery store.

 As the government implements its plan for alcohol reform, the AGCO will continue to work with the government and stakeholders on these alcohol modernization initiatives. 

The government has emphasized the need for Ontario to be ‘Open For Business’ and instituted a government-wide red-tape and burden reduction initiative to support economic growth and foster enhanced interaction between government and business.

The AGCO already has a long history of working to support these goals by continually searching for ways to reduce administrative burdens for businesses and by deploying regulatory approaches to support responsible economic development. The shift towards a more risk- and outcome-based regulatory framework in the gaming sector, for example, is intended to allow operators and businesses more flexibility to adapt to marketplace changes and ultimately to increase their competitiveness without compromising the AGCO’s regulatory work.

In 2018-2019, the AGCO designed and implemented a similar approach for the retail sale of cannabis in Ontario, assuring effectiveness but avoiding unnecessarily burdensome regulatory oversight from the outset. The AGCO also continues to build strategic partnerships and share information with other government ministries and agencies to strengthen collaborative and streamlined approaches. This includes effective relationships with the Ministry of the Attorney General, Ministry of Finance, Ontario Cannabis Store, OLG and the LCBO.

The concept of reducing ‘red tape’ and burden has been a driver for many of the regulatory and internal reforms implemented at the AGCO over the last 15 years. ‘Value for Money’ is embedded into the organization’s fabric and strategic plan. The AGCO continued to work with stakeholders on a number of initiatives in 2018-2019 as part of its ongoing regulatory modernization efforts, including changes to enhance the benefits of charitable gaming. In addition, the AGCO has launched an internal Value Task Force to explore ways to work Better, Faster, Smarter by reducing the regulatory burden for our regulated entities, provide flexibility and enhanced service delivery to our customers and create efficiencies to support the government’s regulatory burden reduction targets. 

In March 2012, the OLG initiated a plan to modernize lottery and gaming in Ontario, which included three key priorities:

• Becoming more customer-focused
• Securing qualified service providers for the day-to-day operation of lottery and gaming
• Renewing OLG’s role in the conduct, management and oversight of lottery and gaming.

The AGCO also embarked on a path to modernize its approach to regulating, which complements the OLG’s plan to modernize the lottery and gaming sectors in Ontario. The AGCO has been taking a modern and progressive approach to regulation, based on risk, the achievement of outcomes and providing a degree of business flexibility and efficiencies for the lottery and gaming industries. These efforts support and align with key government objectives for enhanced efficiency in the delivery of public services and reducing regulatory burden and increasing consumer choice. In addition, the AGCO’s outcomes-based approach to regulation has resulted in significant cost avoidance annually for the AGCO, as well as cost savings, avoidance or additional revenue for Casino Operators.

OLG Casino Modernization

The OLG started modernizing commercial gaming operations by inviting private sector casino companies to become the new Casino Operators. The OLG divided Ontario casino sites into eight gaming bundles and released Requests for Proposal for private sector Casino Operators for each bundle. On May 1, 2018 and July 18, 2018, the West GTA Bundle and Central Bundle respectively transitioned to new private sector Casino Operators. To date, seven bundles (East, Southwest, North, Ottawa, GTA, West GTA and Central) have transitioned to private sector Casino Operators, and the remaining Niagara Bundle is scheduled to be transitioned in 2019. The AGCO has played a key role in supporting this transition. For starters, the AGCO conducts comprehensive due diligence and eligibility assessments to ensure that all operators meet standards of honesty and integrity and to ensure that all casino gaming will be operated within the law. The AGCO also undertakes a number of key activities during the transition process. For example, the AGCO works with the Casino Operator and OLG to monitor transition activities, assess the sites’ readiness, and ensure casino operations comply with all gaming-related legislation and the Registrar’s Standards for Gaming. Once transitioned, many private sector Casino Operators are choosing to build new casinos or expand and relocate existing ones in their respective bundles. Numerous expansions and new builds have taken place over the past year, many with plans to build hotels and live entertainment venues, as well as expand gaming facilities to include ‘live’ table games. The AGCO enhances the operators’ understanding and compliance to AGCO/OPP regulatory requirements by providing them with a Building, Expanding and Relocating Casinos guide, and participates in activities such as pre-opening compliance inspections and ‘mock’ casino exercises.

OLG Player Platform and Lottery Modernization

Under OLG’s Lottery Modernization Strategy, and in accordance with AGCO standards, OLG is also modernizing key components of its lottery and iGaming business including a new OLG Player Platform, the replacement of Lottery Terminals, an enhanced Sports Betting solution, a new Web and App presence as well as new games.

The goal of the OLG Player Platform and Lottery Modernization Strategy is to expand the customer base by ensuring technology and product solutions are responsive to changing customer needs. OLG intends for all lottery modernization initiatives be released at the same time, with Phase 1 releases planned for later in the coming fiscal year and the integration of all systems to be part of future phases. The AGCO is working to educate new Gaming-Related Suppliers on the regulatory requirements and expectations as well as to assess technical solutions in accordance with Registrar’s Standards, and principles of integrity and public interest. 

The OLG and the AGCO continue to work together to implement the overall modernization strategy. AGCO’s approach, both in its day-to-day role, as well as in modernization, is to be standards and risk-based, as well as outcomes-focused. The agency has successfully transitioned to a standards-based approach in casino gaming, lotteries, charitable gaming and iGaming.

See OLG Lotteries for information on how the AGCO conducts audits and reviews of OLG lottery management functions, processes and systems.

The AGCO continued to support the Open Government initiative, which aims to create a more open and transparent government by sharing data and information, and consulting with the people of Ontario.

In accordance with the Open Data Directive, the AGCO has made available on its website an inventory listing data sets under its custody and control. The inventory identifies whether a data set is currently open, in the process of being opened, or exempt from being released as open data due to legal, security, privacy, confidentiality or commercially-sensitive reasons. The agency has also reviewed key data sets published on its website to ensure that open, machine-readable versions are made available. The AGCO has conducted an exercise to prioritize the data sets to be released under Open Data, and will continue to make priority data sets available to the public on its website under an open-by-default approach.

Accessibility for Ontarians with Disabilities Act, 2005

The Accessibility for Ontarians with Disabilities Act, 2005 (AODA) was created with the goal of developing standards that would improve accessibility for people with disabilities across the province. The AGCO has developed accessibility standards in the areas of customer service, employment, information and communications, transportation, and the built environment.

The AODA requires all provincial agencies to provide updates to their Accessibility Plan and Policies on an annual basis. The AGCO is committed to meeting the needs of persons with disabilities in a timely manner, by preventing and removing barriers to accessibility and meeting accessibility requirements under the AODA. The AGCO has implemented the requirements outlined in the plan and participated in various activities to inform its plan and policies, including the review and update of its practices in the areas of training, information and communication, and employment.

All AGCO employees are trained on the requirements of Ontario’s accessibility laws, including the Integrated Accessibility Standards Regulation (IASR), and the Ontario Human Rights Code as it pertains to persons with disabilities. This accessibility training has been built in to the employee orientation process to ensure that all new AGCO employees, as well as the Board of Directors and members of the Horse Racing Appeal Panel, have a better understanding of accessibility to perform their duties and provide services to the AGCO’s diverse stakeholders.  

The AGCO maintains a commitment to meeting all requirements under the AODA and the IASR and continues to refine its accessibility plan with a focus on ensuring its policies and practices remain accessible and meet the needs of all stakeholders, including persons with disabilities.

The Investigation and Enforcement Bureau (IEB) is comprised of OPP Officers, fully integrated as a Bureau within the AGCO. The OPP Bureau is assigned to the AGCO and is fully integrated into AGCO operations, to streamline, standardize and improve investigative response. The IEB is comprised of the Investigations Branch (IB) and the Intelligence and Investigative Support Branch (IISB). These branches provide investigative expertise and effective information sharing to external law enforcement, regulatory and industry stakeholder agencies to ensure integrity and public safety within AGCO regulated industries.

IEB Investigation Branch

Occurrences

TABLE 4 – Number of IEB Investigations

Gaming Enforcement Branch

Gaming Investigation Units

TABLE 5 – Occurrences at Casinos and Slot Machine Facilities

Eligibility Investigations Unit (EIU)

TABLE 6 – Eligibility Investigations

Strategic Partnerships

Compliance Services (CS) recognizes the benefits of collaborative working relationships with police services and other regulatory bodies. Throughout 2018-2019, CS continued to seek out new strategic partnerships and collaborative approaches to promote compliance among all sectors regulated by the AGCO. 

In this fiscal year, CS led the implementation of the Ottawa Compliance Project focusing on the ByWard Market area, in collaboration with municipal compliance bodies including by-law, public health, fire, and police. The project established baseline awareness seminars for front-line compliance personnel to increase their awareness of key compliance concerns for the participating agencies and established an efficient process to refer items of concern to the responsible agency. Based on the results of this pilot, further opportunities to partner with additional communities will be explored.

Service Strategy and Experience

In March 2019, the AGCO created a new Service Strategy and Experience Branch to initially build upon and complete through the objectives of Service Experience 2020, an agency-wide initiative to define and deliver an optimal service and regulatory experience to its customers. Service Experience 2020 plans to elevate the agency's service to customers, across all lines of business, by enhancing the way the AGCO supports its customers at every point of interaction based on Guiding Principles to establish customer-centred services with clear service standards, offer multiple channels of contact, to be “digital by default,” and include self-help options.

iAGCO and Service Improvements

To create a more streamlined and digital experience for AGCO applicants and registrants, the agency continued its phased approach to iAGCO online services:

• Phase 1 was launched on May 29, 2017 for SOP applications and Liquor manufacturers’ licensing
• Phase 2: January 29, 2018 for all Liquor licences. Online submission of complaints and inquiries was also introduced in this phase
• Phase 3: November 19, 2018 for lottery and gaming registrants and January 14, 2019 for cannabis applicants.

As of January 2019, the online submission rate for liquor applicants was 93%. In addition, 79% of gaming application were processed online. Low risk applicants now have quicker application turnaround timelines resulting from auto-issuance and auto-renewals of licences.

In 2018-2019, 95% of Special Occasion Permits, and 41% of liquor licence renewals were issued automatically. The current auto renewal rate for gaming registrations is 60%.

iAGCO improves customer service by allowing those who do business with the AGCO to apply for and manage their licences, registrations and permits online, anytime from anywhere by accessing the iAGCO online portal. 93% of AGCO customers report satisfaction with their experience using the iAGCO portal.

The submission of regulatory notifications, liquor licence objections, cannabis public submissions, general inquiries and complaints are now conducted online through iAGCO. 

TABLE 7 – iAGCO & Service Improvements

The AGCO’s updated Complaints & Inquiries Handling Policy focuses on complaints analysis and continuous improvement to improve evidence-based decision making. Through regular performance monitoring, the AGCO’s average turnaround for addressing complaints about regulated entity compliance and licensing and registration was reduced by 44% over the previous fiscal year from 69.9 to 39.3 days. 

TABLE 8 – Operational Performance by Sector: Customer Service

The AGCO is committed to supporting the public and stakeholders through effective front-line customer service support.

The AGCO continued its commitment to improving the customer experience, with the launch of call-monitoring technology to monitor and improve the quality of customer calls. 

Stakeholder engagement is a key component of the delivery of AGCO priority projects and decision-making. The AGCO shares information and educates stakeholders to ensure overall understanding of regulatory requirements and improve regulatory outcomes and compliance. This engagement supports the AGCO’s compliance-focused and risk-based regulatory approach with increased service quality and collaboration.

Stakeholder engagement, education, and training activities include hosting of webinars and national/international delegations, consultations and industry stakeholder information sessions as well as participation in industry related forums and conferences and facilitation of working groups.

TABLE 9 – Quarterly Strategic Engagement Activities

In addition to targeted industry outreach, the AGCO developed a comprehensive municipal engagement strategy to engage in a focused and coordinated manner with municipalities on its regulatory frameworks for liquor, cannabis and charitable gaming. The strategy included a municipal webinar series aimed at strengthening the AGCO’s relationship with municipalities by engaging on key AGCO regulatory activity topics and issues to address the interests of municipalities. Webinar topics ranged from explaining the role of the AGCO to education surrounding the charitable gaming regulatory framework and the newly regulated cannabis industry. Overall, there were over 900 municipal registrations for the four municipal webinars with an average participant satisfaction rate of 94%.

The 2018-2019 racing season also saw the first full year of implementation of two key reforms to the review of the Rules of Racing that arose out of the industry-wide “Moving Ahead: Horse Racing Regulation in Ontario” working group activities that took place in 2017:

• Measures to streamline the Equine Drug Program process, including changes to penalty guidelines so that they better reflect the severity of equine drug violations and better protect equine athletes. Preliminary results indicate that 94% of positive tests were resolved through a settlement process, and therefore without appeal to the Horse Racing Appeal Panel, compared to 31% in FY 2016/17; 17 of 18 positive tests from April 21 to Dec 31, 2018 were settled
• Standards-based rules related to temperature, including requirements for race cancellation and other measures intended to ensure the well-being of horses and people who may be impacted by extreme temperature. Performance measures related to goals such as enhanced race horse welfare and increased transparency regarding race cancellations were designed, and data collection is underway. 

During 2018-2019, the AGCO continued its engagement with industry stakeholders as it worked toward implementation of other key reforms explored as part of AGCO’s review of the Rules of Racing. This included:

• Receiving input from industry associations, racetrack management, veterinarians and other stakeholders to help inform new standards-based rules requiring that horses in Ontario are free of medications, as well as new provisions concerning the invalidating of claims in instances where a horse dies or is euthanized on the racetrack. Feedback received has informed the implementation and ongoing evaluation of these changes
• Insights from jockeys, racetrack management and medical professionals contributed to the design of a Concussion Protocol Pilot that is to be held at thoroughbred racetracks for the duration of the 2019 racing season. This protocol is intended to safeguard jockeys and race horses, and raise awareness and understanding of concussions and associated health risks.

In 2018-2019, the casino sector continued to transition to a private sector operated model under OLG’s modernization strategy. The sector also fully transitioned to a standards-based regulatory approach, under which the AGCO is establishing clear industry objectives and standards. Regulated entities then determine the most efficient and effective way to meet them. The AGCO assesses compliance by obtaining assurance these objectives and standards are being achieved. The approach benefits the AGCO and the operators by allowing for:

• more operational flexibility while strengthening regulatory outcomes in a way that does not unnecessarily burden those we regulate
• the AGCO to proactively manage the evolving nature of its regulated industries and provide flexibility to be able to assume new regulatory responsibilities.

In carrying out an audit at a casino facility, the AGCO auditor assesses the site’s compliance with the requirements under the Gaming Control Act (GCA), Registrar’s Standards for Gaming, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2001 and related regulations. The AGCO proactively helps regulated entities comply with regulatory requirements using a mix of education, collaboration and deterrence. During 2018-2019, the AGCO carried out four risk-based audits.

As part of its regulatory assurance activities, the AGCO conducts audits, compliance monitoring and reviews, technical monitoring of the iGaming platform and investigations of suspicious behaviour within the province’s PlayOLG.ca gaming platform. The AGCO applies a risk-based approach to its activities, including its eligibility assessment and registration process, technical assessment and approval of updates to the OLG iGaming solution and new games, and the application of regulatory assurance activities to assess compliance with the Registrar’s Standards for Gaming.  During 2018-2019, the AGCO carried out four risk-based audits and reviews.

The OLG, in partnership with the Ontario Charitable Gaming Association and the Commercial Gaming Association of Ontario, embarked on a multi-year initiative to revitalize charitable bingo in the province by introducing electronic products into existing and future charitable gaming facilities. These products currently include electronic bingo, Play on Demand games, electronic Break Open Ticket dispensers, and Turbo Challenge. 

The AGCO continued to work with the OLG and industry partners to facilitate the introduction of electronic games conducted and managed by OLG in cGaming centres. Thirty-one cGaming centres are now regulated under the Registrar’s Standards for Gaming. During 2018-2019, the AGCO carried out one risk-based audit.

In addition to cGaming operated by the OLG in partnership with charities, traditional paper-based bingo events conducted and managed by licensed charitable organizations continue to operate in Ontario. Charitable gaming revenues, including those that come from traditional bingos, are an important source of funding for a large number of not-for-profit organizations.

The AGCO continued to support the charitable gaming industry by supporting fundraising opportunities for charities and providing suppliers with opportunities for business growth through modernization initiatives. These included the bingo revenue model (BRM), changes to the break open ticket regulatory framework, launch of Catch the Ace as well as its works with the Charitable Gaming Strategic Working Group and Mega Raffle Working Group. The BRM applies to all pooling bingo halls. While the role of provincial and municipal licensing authorities remains in place, this model provides for flexibility in how charitable games are licensed, managed and conducted.

The AGCO conducts audits and reviews of OLG lottery management functions, processes and systems. Applying a risk-based approach, the AGCO completed one technology-related audit of a lottery system and continued to monitor the implementation of OLG’s lottery modernization. OLG continued to modernize key components of its lottery and iGaming business including a new OLG Player Platform, replacement of Lottery Terminals, an enhanced Sports Betting solution, a new Web and App presence as well as new games. 

This is a time of significant change in people, processes and technology. During the year, AGCO has been monitoring the changes underway, assessing related risks, educating new Gaming-Related Suppliers on AGCO’s regulatory requirements and expectations, as well as to assessing technology-related readiness.

The AGCO conducts audits and reviews of Ontario racetracks to assess the effectiveness of governance structures and processes, the integrity of funds management, compliance with the licence to operate a racetrack and with the Rules of Racing. AGCO Audit also collaborates closely with OLG Horse Racing in areas of shared interest such as governance and integrity of purse account management. In 2018-2019, the AGCO carried out three audits and reviews of Ontario racetracks.

The AGCO conducts financial due diligence reviews to assess the ability of an entity applying for a licence or registration with the AGCO to conduct its business in accordance with the principles of honesty, integrity and financial responsibility. Financial Investigations Unit (FIU) reports are used to support the eligibility assessment process and licensing and registration decisions made by the Licensing & Registration Branch. During the fiscal year, the FIU completed 14 financial due diligence investigations, up from 12 in the previous fiscal year. The Branch also provided its forensic expertise to support investigations by the AGCO/OPP’s Investigations and Enforcement Bureau of suspected misuse of funds. 

With respect to the tables which follow: comparing 2018-2019 statistics with 2017-2018, the actual number of alcohol, gaming or horse racing inspections has dropped given that the focus of inspections is now less about numbers and more about compliance with governing legislations.

This report marks the end of three years in operation for the HRAP. The focus of the Panel continues to be to ensure a fair and accessible adjudicative process for all participants, and ensuring that it has procedural rules in place to support an efficient and responsive appeal process.

Education and training for Panel members continued to be a high priority during the past year. Recurring meetings of the Panel were held to discuss emerging issues and support information sharing and professional development among the Panel members. The HRAP Secretariat also refreshed its hearing process guidelines to include techniques used in the examination of witnesses and to support better understanding of the rules by self-represented appellants.

The HRAP also made efforts to enhance its stakeholder outreach and education. In June 2018, Secretariat staff reached out to key industry associations and parties/representatives who appear frequently before the tribunal to offer one-on-one information sessions, in the interest of helping parties better understand and comply with the HRAP’s adjudicative framework. The HRAP also began posting educational material at the Panel’s hearing space at 10 Carlson Court for reference by parties before and after their hearings.

As part of its ongoing work to enhance accountability and monitor effectiveness, key performance indicators (KPIs) were established and implemented by the HRAP to help monitor quality service objectives. Other continuous improvements were made to streamline and simplify key Panel documents, such as its notice of hearing and the template used for stay decisions.

The expiry of appointment terms over the year led to a focus on Panel member performance and clarification of roles and responsibilities. Job descriptions were developed to clarify expectations, and formal performance assessments of the Panel members were led by the Chair. A Panel profile was also developed to identify the skill sets required for the ongoing operation of the tribunal and to assist with long-term succession planning.

The Rules of Procedure will be a key focus and priority area for the Panel in the coming year. For the first time, the Panel will be formally consulting with stakeholders on its procedural rules, the idea being that there are a number of parties and individuals who have developed extensive experience appearing before the Panel, and who might therefore have some feedback on how the process can be improved. The objective of this consultation will be to leverage the insights of these parties to ensure that the HRAP’s process remains efficient and effective and continues to meet the needs of the horse racing industry.

Appeals

Hearings

Motions