External Risk Factors

The AGCO has identified enterprise-wide risks that could impact the agency’s ability to deliver on its regulatory responsibilities. The AGCO will continue to monitor risks and implement risk mitigation strategies to ensure the AGCO is able to fulfill its mandate.

Responding to COVID‑19

The government’s response to COVID-19 necessitated a major shift in the AGCO’s approach to developing and implementing regulatory activities. The COVID-19 pandemic has required the Ontario Government and the AGCO to react to unforeseen challenges as they arose. The AGCO has responded to demand from the sectors it regulates, and requests from the Ontario Government to adapt its regulatory requirements in response to the pandemic to help protect public health while supporting the continued economic viability of the liquor, gaming, horse racing and retail cannabis sectors.

In the coming years, the AGCO will continue to work closely with government to provide ongoing supports for the alcohol sector, such as updates to the delivery rules for takeout and delivery from licensed establishments, patio extensions, and licence renewal term extensions where applicable. The AGCO worked with the retail cannabis sector to implement the temporary allowance for curbside pickup and delivery from cannabis retail stores, and will continue to support these retailers.

More than two-thirds of AGCO’s budget comes from recoveries collected from regulated industries.  Due to the COVID-19 pandemic, AGCO is facing pressures in recovering its costs, resulting in a budget deficit.  The AGCO, along with MAG, will manage the fiscal 2020-21 deficit through additional funding and expenditure savings.

In the coming months and years, the AGCO will continue to assess the impact of COVID-19 on the alcohol, gaming, horse racing, and cannabis sectors. The AGCO will work closely with the Ontario Government to support economic recovery while fulfilling its regulatory mandate.