Key initiatives

iGaming

The launch of Ontario’s igaming market on April 4, 2022, was a major milestone.

The AGCO developed a regulatory model for this new, competitive market that protects consumers and provides them with choice, reduces red tape and supports legal market growth and provincial returns.

This model reflects the AGCO’s regulatory objectives for igaming while meeting the unique requirements of the igaming open market. It was informed by a series of engagements with industry stakeholders on the Registrar’s Standards for Internet Gaming (Standards) and the eligibility and compliance approaches for igaming. Following the federal government’s legalization of single-event sports betting, the AGCO also undertook stakeholder engagement on the regulatory standards for sports and event betting, which apply to all sports, esports, novelty and betting exchange.

Through the igaming regulatory model, the AGCO undertook several strategic shifts in its operational compliance and eligibility activities to ensure market participants act in accordance with the law, with honesty and integrity, and in the public interest.

Engagements were also initiated with other jurisdictions to inform the creation of the AGCO’s player service model to ensure information and assisted services met player needs.

The updated risk-based registration model emphasizes applicant ability to meet the Standards and previous experience of applicants, including history in leading jurisdictions. Compliance activities focus on ensuring regulatory objectives are met through innovative, targeted approaches. This includes setting compliance expectations for entry into the market through game and critical system testing, confirmations of full system compliance with the Standards, as well as setting and monitoring priority compliance areas with targeted monitoring and interventions where appropriate.

The AGCO provided smooth and transparent service delivery to igaming customers, including:

  • publishing guides on its website to assist prospective igaming Operators and Gaming-Related Suppliers with the registration process (for example, the Internet Gaming Operator Application Guide) and to help them understand compliance requirements when participating in Ontario’s regulated market (for example, the Internet Gaming Go-Live Compliance Guide);
  • collaborating with iGaming Ontario (iGO) on the development and coordination of a robust onboarding process to ensure igaming Operators have met all requirements to enter the market;
  • implementing a robust customer service model for handling both regulatory and iGO matters, including responding to complaints and inquiries; and
  • making enhancements to the AGCO internet gaming portal, including the creation of a new player support section to provide players with information about the new igaming model and additional resources.

The AGCO also implemented system changes to support the launch of the new igaming market. This included updates to the iAGCO online portal to include igaming applications, processes for complaints and inquiries and development of a digital system to monitor and manage ongoing compliance activities through regulatory intelligence data.

Over the course of 2022-23, the AGCO supported 45 operators to launch in Ontario and meet AGCO compliance requirements. This includes the transitioning of 33 operators from the unregulated market into the regulated market.
 

Liquor modernization

The Liquor Licence and Control Act, 2019 (LLCA) came into effect on November 29, 2021, marking a major milestone for liquor regulation in Ontario. The new liquor framework under the LLCA enables the AGCO to modernize the way it regulates the sale, service and delivery of liquor and allows for a more flexible approach.

The new liquor framework is designed to reduce burden, facilitate better monitoring and compliance and reflect the changing liquor landscape for the benefit of Ontarians. It includes the introduction of a new liquor licence and permit structure and the transfer of the regulatory authority for some activities from the Liquor Control Board of Ontario (LCBO) to the AGCO.

The Registrar’s Interim Standards and Requirements for Liquor (Interim Standards) came into effect under the LLCA and primarily maintain and consolidate many of the previous requirements. Over the coming years, the AGCO will build on this work to develop a comprehensive outcomes-based regulatory model, consistent with our overall strategic approach for other regulated sectors.

Enhanced social responsibility measures were also introduced with the creation of a new re-certification requirement for licensees relating to the responsible sale, service and delivery training (such as Smart Serve). The AGCO adopted this industry best practice in recognition of the significant modernization of Ontario’s liquor sector and the need for continued commitment to social responsibility and public protection in the liquor sector.
 

Cannabis

In June 2022, the AGCO amended rules related to inducements in the Registrar’s Standards for Cannabis Retail Stores to create an additional exemption permitting agreements between retailers and federally-licensed producers (LPs) for store brand products. The objective of these changes was to reduce anti-competitive practices. As the cannabis sector evolves, the AGCO will continue to be responsive, including supporting innovation and flexibility in the sector while regulating in accordance with the principles of honesty and integrity and in the public interest.

Building on the relationships built between the AGCO and First Nations during the cannabis engagements, the AGCO’s compliance team has further strengthened its relationship with leadership in multiple First Nations communities through the establishment of regular communication mechanisms. The AGCO has set up quarterly roundtable meetings with several First Nation representatives to maintain open lines of communication and keep First Nations apprised of any new developments.

In November 2022, the Registrar submitted a letter to the Expert Panel leading the review of the Cannabis Act, outlining the AGCO’s perspective on possible amendments to the federal Cannabis Act to give provincial regulators more flexibility in developing and enforcing regulatory requirements related to cannabis display, promotions, and advertising.
 

Gaming modernization

Gaming modernization is focused on identifying the successes and lessons learned from the implementation of the igaming regulatory framework and their applicability to casino gaming, as well as identifying specific opportunities for burden reduction and how to better target potential harms in the casino sector. This strategy also encompasses the regulatory work to support OLG Lottery Expansion, which involves the introduction of 1,400 self-serve terminals in the province starting in November 2023, and the ongoing transition of the igaming and sport and event betting frameworks to regular operations.

Key accomplishments from the 2022–23 year include:

  • completing internal work to review current standards, eligibility and compliance in the casino sector in preparation for external consultations in 2023. This work builds on many of the innovations introduced in igaming and aims to address casino concerns about creating a fair and competitive regulatory environment across gaming sectors;
  • supporting MAG in its work to make the necessary regulation changes under the Gaming Control Act to permit self-serve lottery terminals, as well as completing the regulatory analysis to identify potential impacts to the Registrar’s Standards for Gaming: Lottery Sector; and
  • completing a number of external engagements related to making adjustments to the  Registrar’s Standards for Internet Gaming.
     

Charitable Gaming

In Winter 2022, AGCO supported the charitable gaming industry through a number of strategic updates to simplify processes and reduce burden with the objective of providing more effective fundraising for charities. These updates focused on:

  • clarifying collaborative fundraising opportunities;
  • updating temporary COVID-19-related flexibilities to provide permanent flexibility where possible;
  • updating rules for Bingo Revenue Model Halls to reduce burden by permitting the use of credit and debit cards and decreasing the number of charity representatives required to be present at the hall;
  • updating terms and conditions for Break Open Tickets to be more standards and outcomes-based; and
  • increasing permissible use of proceeds for Service Clubs and Royal Canadian Legions and clarifying additional ways these organizations can use charitable funds for general operating and maintenance costs of their own premises.

 

Equine welfare

As part of the AGCO’s ongoing commitment to protecting Ontario’s racehorses, enhancing the integrity of racing and providing a regulatory framework appropriate for today’s racing industry, we have worked with industry participants on four welfare reforms that are anticipated to take effect in Spring 2023, which include:

  • a new rule and a revision to the Thoroughbred Rules of Racing to ensure safe and acceptable loading practices in the starting gate, for both horses and starting gate personnel;
  • certain medications and substances will now be regulated in horses participating in an Official Workout (Thoroughbred and Quarter Horse) or in a Qualifying Race (Standardbred);
  • a new rule that will require licensed trainers to report all stabling locations they operate under their licence, including any location changes to the Registrar within five (5) calendar days; and
  • a revision of 22.19 of the Standardbred Rules of Racing will update language and the penalty structure that prohibits a driver’s foot to make contact with the horse in any manner, aligning it more closely with the urging provisions.