iGaming Ontario has announced that Ontario’s open and competitive regulated internet gaming market will open on February 28, 2022.

The Alcohol and Gaming Commission of Ontario (AGCO) has been working to build a regulatory framework for an open and regulated internet gaming market in Ontario that protects Ontario players and is competitive and sustainable for businesses.

The AGCO began accepting applications for registration from internet gaming Operators and Gaming Related Suppliers on September 13, 2021, and although we have received a number of applications for registration, we know that there are many more who are still considering participating in Ontario’s open and regulated igaming market.

Between now and February 28, the AGCO will work with Operators and Gaming-Related Suppliers who want to be part of the launch to move through the AGCO registration process and pre-launch compliance requirements as efficiently as possible. In recognition of the short window before market launch, the AGCO is introducing policies to further facilitate regulated market entry for low risk entities and avoid “blackouts”, which is to say periods of time during which current grey market operators must cease operations in Ontario, to the extent possible.

Given the timeline, it is critical that Operators and Gaming-Related Suppliers submit their applications for registration to the AGCO as quickly as possible. We urge entities to do so no later than January 15, 2022 in order for a reasonable prospect of being approved by February 28. This is not a formal deadline. For applications received after this date, we will do our best to process them in time for February 28, although it will be increasingly difficult as February 28 gets closer. Also, submitting an application by January 15 does not guarantee approval in time for launch. We will review each application for risk, and where heightened risk is identified, further requirements may be needed that prevent completion of the registration process or pre-launch compliance requirements by February 28.

In addition to AGCO registration and pre-launch compliance requirements, Operators must also enter into an operating agreement with iGaming Ontario prior to participating in the regulated market. Operators are urged to take the necessary steps with iGaming Ontario without delay, even while registration and pre-launch compliance requirements are being assessed. If Operators have not already done so, please visit www.connectAGCO.ca to register and submit a non-disclosure agreement with iGaming Ontario as soon as possible.

The following are additional policies, effective as of today. Existing AGCO documents for applicants– the Internet Gaming Operator Application Guide and the Internet Gamin Go-Live Compliance Guide in particular – have been updated accordingly.

Please note: these transition policies will apply on a case-by-case basis, based on our assessment of risk.

We will consider issuing registrations with terms for low risk applications. The concept of issuing a registration “with terms” may have similar elements to other jurisdictions’ use of conditional registrations. The terms can allow an entity to begin operating, subject to specific commitments or restrictions, while any additional information may be assessed.

In our initial review of each application as it is received, we continue to assess the competency, honesty, and integrity of applicants, and will put particular emphasis on:

1. The entity’s registration status in other jurisdictions.

2. The entity’s compliance history.

3. The entity’s gap analysis with respect to the Registrar’s Standards for Internet Gaming.

We will use this initial review, in addition to some initial due diligence activities including open-source information and background checks, to determine in a timely way whether registration with terms for February 28 may be appropriate. Applicants should note that a fulsome and complete gap analysis will be a particularly important part of this initial review process. As part of this review, we may identify deficiencies in the application that applicants might be able to address in a timely manner so that they can be registered with terms in time for launch.

Given the timeframes, there may be circumstances where ITL testing of critical gaming systems¹ cannot be fully completed by February 28. In these circumstances, and again on a case-by-case basis commensurate with risk, the AGCO will consider providing temporary approval for critical gaming systems to facilitate operations at launch in the following circumstances:

• The critical gaming systems being deployed in the regulated Ontario market at launch have prior ITL certification in another jurisdiction and have been submitted to an ITL for testing and certification against the Registrar’s Standards for Internet Gaming.

• The Registrant seeking ITL certification confirms that those critical gaming systems, although not yet fully certified, are materially in compliance with AGCO Standards.

• Any deficiencies identified by ITLs will be addressed expeditiously or the aspects of the critical gaming systems with deficiencies will be withdrawn from the regulated Ontario market in a timely manner (see Standards 4.09.6 and 4.10).

• Full certification of required critical gaming systems shall be completed within 3 months of launch.

This process will be facilitated by the Technology Regulation and Compliance Branch. Registrants should contact igamingcompliance@agco.ca for further details.

The Registrar reserves the power to revoke any critical gaming system approval in the event that ITL certification is not received or the Standards are not met.

While the AGCO will expect technical standards relating to the integrity of gaming to be met at launch, the AGCO may consider accepting compliance plans outlining full implementation of control activities to address some Standards within a reasonable time after entering the regulated Ontario market. On a case-by-case basis, and according to risk, our compliance teams will review Registrants’ gap analyses and engage with Registrants to determine whether to allow entry into the market in accordance with a compliance plan.

This process will be facilitated by the Technology Regulation and Compliance Branch. Registrants should contact igamingcompliance@agco.ca for further details.

The following additional policy direction is intended to provide clear guidance on requirements for exiting the unregulated market, ensuring smooth transition from the unregulated to the regulated market in Ontario, and, to the extent possible, ensuring that Operators in the process of becoming registered do not experience blackout periods before going live in the regulated Ontario market.

For Operators:

•  As of February 28, 2022, Operators must have all of their gaming sites and the gaming sites of all related entities and entities in which the Operator has any ownership or financial interest:

  • Registered by the AGCO; or

  • Subject to an application for registration with the AGCO; or

  • Not operating in the Ontario market.

• Operators who have applied for registration may continue to operate those gaming sites that are subject to applications for registration in the unregulated Ontario market until such time as they are approved and launched in the regulated Ontario market – but not later than August 31, 2022.

• Where an Operator is providing gaming-related services to other entities in the unregulated Ontario market, they may continue to do so after February 28, 2022, but only:

  • To entities (including both other gaming sites and Gaming-Related Suppliers) that are subject to applications for registration with the AGCO as of February 28, 2022.

  • Until August 31, 2022.

For Gaming-Related Suppliers:

• As of February 28, 2022, Gaming-Related Suppliers and all related entities and entities in which the Gaming-Related supplier has any ownership or financial interest must be either:

  • Registered by the AGCO; or

  • Subject to an application for registration with the AGCO; or

  • Not providing any products or services in the Ontario market

• Gaming Related Suppliers who are registered or have submitted their application for registration by February 28, 2022 may continue to provide services in the unregulated Ontario market (in addition to the regulated market) after February 28, 2022, but only:

  • To gaming sites and Gaming-Related Suppliers that are subject to applications for registration with the AGCO as of February 28, 2022.

  • Until August 31, 2022.

For Both Operators and Gaming-Related Suppliers

• As noted above, Operators and Gaming-Related Suppliers who are currently active in the unregulated market must, by February 28, 2022, either be registered, have submitted their application for registration, or have exited the Ontario market. Failing to do so will be taken into account in any Operator or Gaming-Related Supplier application for registration that is received after February 28, 2022 and may result in AGCO refusal to issue a registration.

The Registrar reserves the right to consider all circumstances.