The Alcohol and Gaming Commission of Ontario (AGCO) is Ontario’s regulator for the alcohol, cannabis, horse racing, and lottery and gaming sectors, including the recently expanded provincial internet gaming (igaming) market. The AGCO strives to be at the forefront of modern industry regulation, while maintaining high regulatory standards and its steadfast commitment to protect the public interest for the sectors it regulates.

Under the Agencies and Appointments Directive, the AGCO is annually required to provide a multi-year Business Plan to the Attorney General. This Business Plan sets out its core strategy for the next three fiscal years, including key initiatives that will be undertaken in support of this strategy.

The current Strategic Plan sets out the following strategic goals: Modern Regulator, Service Excellence, and People First. These three goals support the achievement of its mandate and key government objectives for enhanced accountability and efficiency in delivering public services; supporting evidence-based decision making and policy development; maintaining the focus on protecting consumers and the public interest; and working with regulated industries to reducing administrative burden on businesses to drive economic growth in Ontario.

As the AGCO’s five-year Strategic Plan reaches the end of its intended cycle, it has prioritised the development of the next strategic planning framework. In the meantime, the AGCO remains focused on its current strategic goals to meet its regulatory mandate within Ontario’s alcohol, cannabis, horse racing, and lottery and gaming sectors.

For 2024-2025 the AGCO will focus on advancing the following priorities:

• Continue to support our regulated businesses through modernization initiatives and the reduction of unnecessary regulatory burden.
• Continue working to consider the AGCO’s licensing fees across all regulated sectors through cost recovery framework.
• Work towards implementing the remaining recommendations from the Office of the Auditor General’s 2020 Value for Money Audit of the AGCO.
• Support the government’s objectives and policy development activities related to modernizing Ontario's beverage alcohol retail marketplace while maintaining the commitment to the safe and responsible sale, service, delivery and consumption of alcohol.
• Continue to build a robust open market for cannabis retail sales while combatting the illegal market and to keep youth and communities safe.

Under this Business Plan the AGCO will continue to advance its work related to:

• Collecting, sharing, and managing data to drive data-driven decision-making.
• Enhancing new digital practices and technologies to deliver simpler, faster, better services to Ontarians.
• Continuing to implement its multiyear Diversity, Inclusion, and Accessibility strategy to promote an equitable and inclusive workplace.

The AGCO will continue to apply its risk-based, outcomes-based, and compliance-focused approach to regulation, to provide greater flexibility for regulated entities in terms of how they achieve regulatory compliance. This approach enables the AGCO to more effectively manage risks while prioritizing resources, to regulate in a way that is fair and responsive to sector needs while protecting the public interest.

The AGCO is an arm’s length regulatory agency of the provincial government, reporting to the Ministry of the Attorney General. It was established on February 23, 1998, under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996. The AGCO continues as a corporation under a new corporate governance statute, the Alcohol and Gaming Commission of Ontario Act, 2019.  

The AGCO is responsible for the administration of:  

• Alcohol and Gaming Commission of Ontario Act, 2019  
• Liquor Licence and Control Act, 2019  
• Gaming Control Act, 1992;
• Charity Lottery Licensing Order-in-Council 1413/08 (as amended);
• Cannabis Licence Act, 2018;
• Horse Racing Licence Act, 2015 ;

Since its inception, the AGCO’s mandate has evolved to support the growth of the alcohol, lottery, and gaming sectors, in addition to more recently assuming responsibility for Ontario’s horse racing sector, and the legal recreational cannabis retail sector.  

In 2021, iGaming Ontario was established as a subsidiary corporation of the AGCO. Ontario Regulation 517/21 under the Alcohol and Gaming Commission of Ontario Act, 2019, sets out that relationship and provides for appointments to the iGaming Ontario Board. There is the ability to cross-appoint AGCO Board members to the iGaming Ontario Board of Directors with certain limitations which are set out in regulation. The AGCO remains an independent agency responsible for the regulation of gaming activities in the province, including igaming, to ensure it is conducted with honesty, integrity, and in the public interest. The Registrar’s role is independent of iGaming Ontario’s role in the conduct and management of igaming.  

In addition to statutory and structural measures to mitigate real and perceived conflicts of interest, the AGCO Board has approved a Conflict-of-Interest policy for all AGCO employees, the Registrar and Chief Executive Officer, and AGCO Board Members. iGaming Ontario is also required by regulation to develop and maintain a separate Conflict of Interest policy for its directors, officers, and employees.  

The AGCO’s Strategic Plan articulates the vision, goals, and key commitments it has made to fulfill its regulatory mandate and to support the alignment to and the achievement of the priorities outlined by the Ontario Government, in particular the Ministry of the Attorney General to which it reports.

Text version of AGCO Alignment with Government and Ministry Priorities

The AGCO is committed to fulfilling its mandate as set out in its 2024-25 mandate letter from the Attorney General. The AGCO has developed this Business Plan to align with the expectations in its mandate letter and the AGCO Board of Directors priorities.  

The AGCO promotes compliance with relevant legislation, regulations, and Registrar’s Standards to protect the public interest in alignment with government and ministry priorities. The following core activities enable the AGCO to fulfill its mandate effectively. 

Alcohol

The AGCO licenses and regulates establishments that sell, serve, or deliver liquor. In addition to establishments, it also licenses and regulates alcohol manufacturers, including by-the-glass, retail store, delivery, and temporary extension endorsements. The AGCO administers the Special Occasion Permit (SOP) program, allowing for the sale and service of liquor at special occasions. In terms of compliance activities, the AGCO inspects, monitors, including through the Mystery Shopper Program, and educates licensed establishments to ensure compliance with the Liquor Licence and Control Act, 2019, its regulations and Registrar’s Interim Standards and Requirements.

Cannabis

The AGCO licenses Cannabis Retail Store Operators and Managers, authorizes Cannabis Retail Stores, approves Cannabis retail employee training programs, and regulates the sale of recreational cannabis through privately run stores. Cannabis compliance activities include monitoring, inspections, audits, mystery shoppers, and providing education to authorized cannabis retail stores to ensure compliance with the Cannabis Licence Act, 2018, its regulation, and the Registrar’s Standards for Cannabis Retail Stores.

Horse Racing

The AGCO regulates horse racing in Ontario through the Rules of Racing for Thoroughbred, Standardbred, and Quarter Horse breeds. It licenses individuals and businesses involved in the horse racing industry, including racing participants, racetracks and teletheatre locations, and promotes safety and consistency for horse racing participants and horses.

The AGCO ensures compliance with the Rules of Racing by having Racing Officials present to officiate races and investigate alleged rule infractions. It has dedicated inspectors and an Equine Drug Unit that includes membership from the Ontario Provincial Police that conducts out-of-competition drug testing and inspections to ensure appropriate use of therapeutic drugs. The AGCO collaborates with the Canadian Pari-Mutuel Agency which oversees the post-race equine drug testing program to prevent the misuse of equine drugs. It conducts inspections and/or investigations of positive tests, and subsequently holds reviews to determine penalties as per the Rules of Racing.

The Horse Racing Appeal Panel, an independent adjudicative tribunal, the members of which are appointed by the AGCO Board, hears appeals of rulings made by Racing Officials and AGCO Deputy Registrars under the Rules of Racing.

Lottery and Gaming

Licensing and Registration activities for lottery and gaming, including charitable, commercial land-based, and internet sectors involve registering operators, suppliers, retailers/sellers, and gaming assistants. The AGCO administers the regulatory framework governing the issuance of charitable lottery licences (e.g., bingo, raffle, and break open ticket events). Additionally, municipalities as well as First Nations with an Order In Council are authorized to issue charitable lottery licenses The AGCO also approves rules of play or changes to rules of play for games of chance conducted and managed by the Ontario Lottery and Gaming Corporation (OLG), and licenses games of chance at fairs and exhibitions. In addition, the AGCO has requirements to ensure excluded persons (i.e., minors and self-excluded individuals) are not permitted access to gaming premises or online operator platforms in Ontario pursuant to the Gaming Control Act, 1992.

Compliance activities for the lottery and gaming sector include ongoing regulatory assurance activities including inspecting, monitoring, and conducting regular audits of casinos, internet gaming, charitable gaming events/facilities, and retail locations where OLG lottery products are sold. This is done to ensure compliance with the Gaming Control Act, 1992 and its regulation, the Registrar’s Standards, and licence/registration requirements established by the Registrar. The AGCO ensures the safe, responsible and lawful operation of the expanded internet gaming market, consistent with the Gaming Control Act, 1992. It also arbitrates lottery disputes.

In the commercial land-based gaming sector, the AGCO is responsible for ensuring the integrity, security, fairness and audit capability of all electronic gaming hardware, software, associated equipment and gaming systems, including slot machines.  

In terms of internet gaming, the AGCO:

• Conducts eligibility assessments to determine whether applicants are suitable to be registered as operators or gaming-related suppliers, which includes independent testing labs (ITLs) and independent integrity monitors.
• Outlines technical standards that are used by ITLs to test and certify, among other things, online games available for Ontario players.
• Conducts ongoing regulatory assurance activities, including regular audits, testing, and site visits, to assess compliance with the Gaming Control Act, 1992 and the Registrar’s Standards for Internet Gaming.

Educational Activities

The AGCO proactively provides targeted education to those who are regulated to increase their understanding of regulatory obligations and improve overall compliance. AGCO staff regularly attend industry events and conferences to provide in-person education and support to stakeholders via panel presentations, keynote speakers, and trade show booths. As appropriate, multi-disciplinary teams from across the organization, including individuals from the AGCO’s licensing and registration, policy, and compliance teams, attend these events to offer holistic, direct, and timely education. 

Environmental Scan

The AGCO has experienced significant growth in the past decade, having assumed regulatory responsibility for a new competitive internet gaming market, recreational cannabis retail, and the horse racing industry, in addition to ongoing alcohol retail modernization.

Since the launch of Ontario’s private recreational cannabis retail model in 2019, the AGCO has seen the growth of a robust open market for retail sales and understands the competitive pressures that operators and prospective operators are under. It will continue to work with partners such as the Ontario Cannabis Store on opportunities to support cannabis retailers while combatting the illegal market and to keep youth and communities safe.

The government is working on its plan to continue expanding alcohol sales to more retail locations. The AGCO will continue to collaborate with government as more details become available and will continue to explore innovative approaches to regulating the liquor sector, all while maintaining a strong focus on social responsibility measures that protect the public interest.​

Capitalizing on these dynamic and growing industries and based on recommendations from the Office of the Auditor General, the AGCO will increase its focus on strengthening its financial framework over the next three years as well as finding opportunities for business optimization measures and digital tools.

External Factors

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

Legislative Changes and Government Priorities

Many of the determinants of the AGCO’s operating environment flow from changes to government legislation and regulations. These new opportunities underline the importance of focusing regulatory attention on higher-risk areas so that the AGCO is better equipped to navigate a changing environment.

Currently, the AGCO is actively engaged in the federal review of the Cannabis Act, through a written submission and participation in roundtables with the Expert Panel.​ The AGCO will continue to work with its government partners to manage any impacts to provincial regulators that may occur as an outcome of the review.

Emerging Issues and Industry Trends

The AGCO continues to monitor and address the evolution in public and consumer attitudes towards the sectors it regulates and will continue to stay informed on issues related to unregulated areas and illegal markets. These industry trends include changing consumer choices, increasing customer service expectations, and calls for more stringent protections on digital information. These trends are linked to global currents of rapidly advancing technological development, fully integrated use of data and analytics, and an increasingly digital first world. As a modern and collaborative organization, the AGCO will work with government partners, municipalities, law enforcement, and its stakeholders to address new challenges that may emerge.

Anti-Money Laundering

Anti–money laundering (AML) continues to be a key focus. The AGCO continues to proactively monitor, detect and deter money laundering from occurring within or related to legalized gaming activities in Ontario.

Cyber Security

Cyber attacks are a significant threat to all government entities. The AGCO continues its cybersecurity roadmap and has implemented significant controls to monitor unauthorized network and system access to complement phishing and social engineering attack controls.

Internal Factors

Competitiveness Sustainability & Expenditure Management  

Looking forward to 2024 and the following years, the AGCO aims to balance the need for economic sustainability and recovery with continuing its focus on regulating in the public interest. The AGCO has initiated a funding framework review with the Ministry of the Attorney General to mitigate its ongoing structural deficit and respond to the government’s commitment to program sustainability and in response to the Auditor General’s recommendations for the AGCO to become more financially self-sufficient.

The ongoing Auditor General follow-up report is expected in 2023-24. The AGCO, with the support of government, will work to implement any needed changes to the existing AGCO funding framework and any potential legislative changes that may occur as an outcome of the review.  

Assessing and Managing Risk

The AGCO uses an Enterprise Risk Management (ERM) Framework to monitor, identify, and mitigate these environmental risk factors. The ERM Framework assists the organization in identifying areas of risk and responding is a disciplined and integrated way.  

Key opportunities to address risks identified under this framework include:  

•    Building a strong information security approach, including expeditious recovery in the event that a significant information security incident occurs.
•    Ensuring the People First strategy addresses current workforce trends and best practices to enhance talent attraction and retention.  
•    Developing the funding framework to meet operating and performance expectations.
•    Strengthening our effectiveness as a regulator by addressing concerns and/or changes in the regulated sectors or service expectations in a timely manner.

ERM is a continuous, proactive, and systematic process to understand, manage, and communicate risk from an organization-wide perspective and assists management in making strategic decisions that contribute to the achievement of the AGCO’s corporate objectives. As part of the annual risk management cycle to identify key risks and exposures, a risk workshop is held with the senior management team to identify, assess, and decide on prioritization and mitigation activities for the AGCO’s top risks. Additionally, a quarterly divisional-specific risk management process occurs to support the AGCO to better manage its risks throughout the year. Staff and management are involved in these risk assessments that help the AGCO identify and action its key risks.  

The results of the risk assessment activities are a key input in developing the AGCO’s Internal Audit Work Plan, which prioritizes areas considered high risk. The AGCO’s identification of key risks also assists in the development annual priorities. 

The AGCO’s current Strategic Plan outlines the vision and strategic goals for the organization. The vision of being a world-class regulator that is innovative, proactive, inclusive, and socially responsible will be achieved through its three strategic goals – Modern Regulator, Service Excellence, and People First. Each goal is associated with several key commitments, as outlined below.

Text version of strategic plan

The AGCO Strategic Plan was refreshed in 2019 for a five-year period. Development will continue to establish a new plan anticipated to be in place in 2024. Once the plan is established, implementation activities will include aligning internal planning, monitoring, and reporting activities to support the strategic direction.  

Part of the AGCO’s annual planning cycle includes identifying its corporate priority initiatives. The AGCO’s Leadership Team undertakes an annual prioritization process to identify these initiatives, which considers alignment with its mandate, government priorities (including those identified in the Attorney General’s mandate letter) as well as resource capacity, among other strategic inputs.  

2024-25 Corporate Priorities

Based on the ongoing assessment of initiatives for 2024-25, the AGCO is anticipating a continuation of priorities initiatives from the previous year, which support ongoing modernization and burden reduction for the sectors it regulates while ensuring the continued protection of consumers.

Building on previous years’ work in response to the Auditor General’s 2020 Value-for-Money Report, the AGCO is undertaking a Financial Framework Review with the Ministry of Attorney General to respond to the government’s commitment to program sustainability. The Review aims to adjust the AGCO’s framework to make it more sustainable and consistent across the four sectors with the objective of moving it closer to achieving full cost recovery and self-sufficiency over the long term.

The Auditor General’s 2022 two-year follow up report on the 2020 Value-for-Money audit of the AGCO demonstrated the considerable progress it has made in implementing recommended actions, including in the areas of compliance and inspections activities, regulatory processes, and public transparency. As part of the follow-up process, the AGCO continues to provide status updates to the Auditor General on the ongoing work to implement remaining outstanding recommendations. The ongoing follow-up report from the Auditor General is expected to be released in December 2023. The AGCO will continue to implement the agency-wide action plan and provide updates for the remaining recommendations for the Auditor General’s follow-up in 2024.

Liquor Modernization remains a key priority. The AGCO is committed to collaborating with the government to identify opportunities for modernizing Ontario’s beverage alcohol retail marketplace and enhancing its operational capabilities, digital tools, and processes to improve efficiency and effectiveness within the liquor regulatory framework. This involves exploring innovative approaches to regulating the liquor sector, all while maintaining a strong focus on social responsibility measures that protect the public interest.  

Supporting businesses through ongoing modernization and burden reduction initiatives will remain a focus, and the AGCO will continue to identify considerations for government of potential legislative opportunities across the various sectors that support these initiatives.  

The AGCO continues to support cannabis retailers by reducing red tape and regulatory burden while still ensuring the safe and legal sale of cannabis at authorized stores.  Through work with provincial partners, including the Ontario Cannabis Store and the Ontario Provincial Police, the AGCO is exploring opportunities to combat the illegal market and to keep youth and communities safe. The AGCO has been actively engaged in the federal review of the Cannabis Act, through a written submission and participation in roundtables with the Expert Panel.  

Through the Gaming Modernization initiative, the AGCO continues to explore and consult on potential policy and operational innovations. The possible areas of reform include registration and certification requirements for industry and updates to the casino compliance operating model. Gaming Modernization is also focused on other important streams of work including helping to tackle unregulated internet gaming market, enhancing its regulatory anti-money laundering oversight role, and facilitating the expansion of the Ontario Lottery and Gaming Corporation self-serve lottery terminals across the province.  ​

Implementation Plan

As part of the annual planning cycle the implementation of the corporate priorities includes a process to track and report on the progress of ongoing initiatives while also informing and assessing the consideration of new initiatives. The status of these priority initiatives is updated quarterly and regularly reported to the AGCO Board. 

There are several key Human Resources priorities and initiatives that support the achievement of the AGCO’s People First Strategic goal.

Diversity, Inclusion & Accessibility    

The AGCO retained KPMG in 2021 to develop a comprehensive Diversity, Inclusion, and Accessibility (DI&A) strategy to address the concerns and needs of the diverse workforce, as well as foster an inclusive work environment, free from racism and discrimination. The strategy has been translated into a multi-year workplan. The AGCO conducted an employee census to establish baseline diversity demographic information about the workforce to enhance ability to invest in employee development and succession planning. The census will be administered annually. Speaking events, learning workshops, and resources are provided to AGCO employees throughout the year to build awareness and skills to confront anti-Black racism, advance Truth and Reconciliation, and create safer and inclusive spaces for 2SLGBTQ+ communities. A specific DI&A leadership competency has been created to help define expectations of employees and inform training solutions to support the goal of building individual and organizational capacity. Diversity, equity, inclusion and anti-racism principles and practices are being embedded into Human Resources and Organizational Development programs and processes, for example recruitment, human resource policies, and leadership development programs.  

Hybrid Work model

The Hybrid Work model supports the needs of employees to balance their work and home lives, while maintaining an engaged, productive workforce. It enables AGCO employees, where operationally feasible, to work from multiple locations, such as from home and other locations within Ontario. The AGCO is following the directive set out by the provincial government and has started the transition to working in-office at minimum three days per week. Efforts will be made to foster social connections and support purpose driven gatherings. The model will continue to be monitored for effectiveness and continuous optimization will be regularly explored.  

Well-Being Program

Employee well-being continues to remain a top priority at the AGCO. There are activities and campaigns planned to regularly communicate and remind employees of internal and external resources available focusing on total well-being under all pillars of health (i.e., mental, financial, physical, and social).  

Wellness topics are focused on the top health risks of our employees which is based on data collected through the use of benefits by employees to ensure that the resources provided are useful and beneficial to employees.  

Competencies and Performance Development

Competencies are the fundamental personal characteristics and behaviours that are crucial predictors of exceptional job performance at the AGCO.  Recently the core competencies were refreshed to support our growth and success within the organization.  

The AGCO will be reviewing the current Performance Development framework to align the current program to the new core competencies and compensation strategy and apply best practices to support employee performance.

Leadership Development / Succession planning

To support succession planning, the AGCO has begun the launch of a new suite of leadership development programs to support the growth of our new and existing leaders in the organization at various levels of leadership. These include:  

• The New Leader Onboarding Program is designed to support new leaders with their arrival and provide a successful transition to their new role.  
• The Emerging Leader Program is designed to provide aspiring leaders within the AGCO with foundational leadership skills connected to our core competencies.
• The AGCO Leadership Academy Program is designed to further develop and enhance leadership skills, qualities, and competencies of the current management team.    

Employee Engagement

 The AGCO continues to conduct regular engagement pulse surveys and ensures continuous action planning and execution to strengthen the culture and workplace. Valuable insights have led to actions to address and improve several areas including career and professional development, and employee health and wellness. A comprehensive Employee Engagement Survey is planned for the upcoming fiscal year.  

Operational Excellence

The AGCO is committed to ensuring operational excellence in all aspects of Human Resources programs and processes, including:

• Talent Acquisition is a key agency-wide process that will be regularly reviewed to implement best practices, be forward-thinking and leverage the latest sourcing approaches to attract and retain talent. Greater emphasis on establishing improved AGCO branding will be integral in establishing it as a “known” and coveted place to work.  
• New technologies for employee experience will be leveraged to enhance the interactions of our employees, as well as, exploring greater self-service options. 
• A critical eye will be applied to core processes/programs to streamline and bring efficiencies to core processes, to reduce red-tape and provide for clear, relevant information upfront to provide the best service to AGCO employees.  

Bargaining Agent

The bargaining unit for the AGCO is OPSEU Local 565, which represents 73% of the AGCO’s workforce.

Organizational Chart

Text version of organizational structure

AGCO Headcount (as of September 30, 2023)

The AGCO relies on digital platforms to deliver accessible, reliable, secure, and customer-centric services to Ontarians. In line with the Government of Ontario’s Digital Service focus and commitment towards new digital practices and technologies to deliver simpler, faster better services to Ontarians, the AGCO will continue to prioritize the development of a Digital Strategy to guide, inform, and govern its digitalization efforts. This Digital Strategy will be tightly integrated into the operations and long-term planning efforts focused on how it can strengthen the priority of being a Modern Regulator, ensuring a deep understanding of its stakeholders through a focus on Service Excellence and fostering a People First culture that develops and empowers a dynamic workforce.  

The planning and implementation of a Digital Strategy requires a multi-year effort and investment that will ultimately set agency-wide digital objectives, determine capability gaps, and define key initiatives and enablers fitted onto a maturity roadmap. As the Digital Strategy and creation of a three-year digital roadmap takes shape, efforts continue within I&IT to set foundational technology and operational building block capabilities in the following areas that will accelerate the AGCO digital journey.  

Business Process Optimization and Performance Measurement  

Strategic alignment and accountability are key components of organizational success. The AGCO recognizes this and has further demonstrated its commitment to success by establishing an enterprise-level Performance Measurement Strategy, led by the Business Optimization and Insights branch. The Strategy intends to increase the AGCO’s capacity for evidence-based decision making, while enabling it to show progress towards its mandate. A key component of the AGCO’s Performance Measurement Strategy is its Balanced Scorecard. The AGCO Balanced Scorecard hosts a set of enterprise-level performance measures and outcomes that represent key focus areas of the agency. The Scorecard facilitates enhanced monitoring of these keys for AGCO, to support evidence-informed decision making in fulfilling its continually evolving mandate.

Enterprise Data & Analytics Program Implementation  

The AGCO recognizes that data is a key pillar supporting its risk-based approach to regulation and the support of digital business. The Enterprise Data and Analytics branch is developing a Data and Analytics Strategy, including an actionable analytics roadmap to evolve processes supporting the development of data channels, management, and governance of data to support the AGCO’s vision of becoming a modern, evidence-based regulator with data-driven decision-making.  

Cybersecurity  

The AGCO will continue to implement its cybersecurity roadmap and has already implemented significant controls to monitor unauthorized network and system access to complement phishing and social engineering attack controls. Continuing our investment in people, process, and technology, the Cybersecurity Program has introduced advanced email security protection to add artificial intelligence and machine learning to email protection to complement a robust end-user phishing training offering. The implementation of a third-party Security Operations Centre and Security Information and Event Monitoring will decrease the likelihood of a successful attack and reduce the time to react and contain an attack, should it occur. AGCO will continue to invest to reduce the possibility of successful cyber attacks, protect personal information, and increase the response and recovery capabilities of AGCO.  

Digital Platforms and Journey to Cloud  

At the centre of AGCO’s digital-first approach is the iAGCO platform. The platform provides online services for its regulated sectors. To ensure alignment and integration of iAGCO and other digital products into the overall portfolio, a digital product management approach is being adopted. The AGCO will plan and manage core business systems through Digital Product Planning and Digital Product Delivery teams that ensure customer focused systems are available in a timely, cost-effective manner using agile delivery methodologies and roadmaps that are aligned to long-term strategic business needs.  

AGCO is modernizing legacy systems and infrastructure into available, flexible, and scalable cloud environments as a foundational step for the Digital Strategy. AGCO successfully retired its AS/400 legacy system after 20 years of operations, retiring unused applications and migrating required data and business functionality to modern platforms. AGCO continues to evaluate on-premise applications and will retire, move, or re-platform business applications to modern flexible cloud-based platforms.  

Strategic Portfolio and Digital Strategy Management  

As I&IT continues to become a key enabler of many of the AGCO’s key initiatives and operational capabilities, it is vital for I&IT to ensure continued alignment of both divisional and overall organizational finite resources to execute and support its business strategy. In addition to the development of a Digital Strategy, ongoing work will need to continue to ensure that the organizational digital journey and maturity is guided, managed, and adjusted as necessary based on current government and organizational dynamics and priorities. This will result in the positive evolution of its digital portfolio, featuring current innovative and forward-thinking approaches and alignment to digital trends.  

 Along with a digitally ready workforce who possesses the required skillsets, data literacy, and aptitude for the use of technology in this new digital reality, the combination of strategic planning and focused/prioritized execution will serve as the catalyst for the AGCO to adapt and flourish in a new digital reality.  

Stakeholder Engagement  

The AGCO remains committed in its approach to engage all sector stakeholders to anticipate, understand and monitor trends and emerging risks, as well as to respond to their evolving and changing needs. This approach aims to help the AGCO deepen its understanding of its stakeholders, identify opportunities to improve its effectiveness and efficiency, and improve regulatory outcomes.

The AGCO strives to continuously enhance its engagement toolkit to connect with its diverse network of stakeholders, both within Ontario, as well as nationally and internationally, given the global dimensions of these regulated sectors. This includes expanding the utilization of its digital stakeholder engagement portal in the coming years, with all its regulated sectors, where appropriate. The AGCO Connect portal has proven to be an effective way to gather input, share information, and consider external viewpoints to make informed decisions and develop policies.  

The AGCO will also continue to explore new and innovative strategies to tailor its digital engagement activities to the unique needs and dynamics of each regulated sector. The ongoing integration and enhancement of its digital engagement tools aligns with improving digital delivery and customer-centricity.  

Collaborative Relationships and Partnerships

The AGCO continues to be committed to cultivating collaborative relationships and partnerships with the various levels of government within Canada, as well as internationally, primarily with other regulatory bodies.  

The AGCO has ongoing communication with law enforcement agencies across Ontario, including with members of the Ontario Provincial Police Bureau assigned to the AGCO who provide specialized educational seminars and materials on enforcement activities for front-line police officers, and continually share relevant information. The AGCO is a member of the Ontario Association of Chiefs of Police Alcohol, Gaming, and Cannabis Committee. It is also a contributor to the Criminal Intelligence Service Ontario (CISO) which is a partnership between the Ontario government and the law enforcement community to identify and tackle organized crime across the province.  

The AGCO’s Investigative and Enforcement Bureau (IEB) continues to participate in an anti–human trafficking working group, collaborating with the Ontario Provincial Police Anti–Human Trafficking Unit, Criminal Intelligence Service Ontario and municipal partners to proactively focus on anti-human trafficking activities. The group created a list of anti-human trafficking police contacts from police jurisdictions across Ontario that house casinos and/or racetracks. The collaborative effort of this initiative allows investigators to quickly mobilize a multi-jurisdictional response to investigations. IEB members will continue to provide anti-human trafficking training to service providers at all casino locations across the province.

As part of the Last Drink Program, the AGCO continues to be actively engaged with regional and municipal police services to share information, including the name of the licensed establishment where an individual, charged with certain alcohol-related driving offences, had their last drink. An AGCO Inspector will visit the licensee to discuss their regulatory obligations and reiterate the importance and responsibility of complying with laws related to public safety concerns such as over-service, serving minors, and hours of operation.  

Representatives from the AGCO serve as board members on the Regulatory Compliance and Enforcement Council, a non-profit organization which is committed to promoting excellence and high professional standards in the enforcement profession through quality training and education.  

The AGCO will continue to develop and strengthen its relationships with key Canadian and international regulators to share relevant information and best practices. The AGCO has standing meetings with Financial Transactions and Report Analysis Centre of Canada (FINTRAC) to discuss compliance-related matters. Within Ontario, the AGCO regularly engages a group of provincial government stakeholders to discuss anti-money laundering matters.  

At the national level, the AGCO regularly participates in federal, provincial, and territorial forums related to cannabis retail and gaming, as well as federal legislation reviews that intersect with the sectors it regulates. The AGCO is affiliated with the Association of Liquor Licensing Authorities of Canada and the Canadian Association of Gaming Regulatory Agencies. Internationally, it continues to be an active partner in both the International Association of Gaming Regulators and the North American Gaming Regulators Association. Within the horse racing sector, the AGCO is a part of the Association of Racing Commissioners International, an umbrella organization that sets global standards for racing regulation, and it has regular touchpoints with the Canadian Pari Mutuel Agency.

The AGCO recognizes the value in maintaining and building strong relationships and will continue to leverage existing relationships and proactively establishing new ones with other regulators and organizations to promote collaboration, information exchange, and enhance due diligence processes including strengthening current memoranda of understanding and forging new agreements. 

The AGCO’s corporate communications function provides a range of services and products that help to deliver on its strategic objectives in a way that cultivates relationships of trust, understanding, and support with its internal and external stakeholders.  

The AGCO’s “Digital by Default” communications approach places a priority on digital communications to inform and engage with the public, its customers, and employees. It does so by leveraging digital channels and taking advantage of the benefits of rich, omni-channel media to support its overall modern regulatory approach.  

Communication activities that will be a focus for 2024-2027 include media relations, crisis communications, brand strategy, digital communications for internal and external stakeholders, and channel content development. Communications planning and support for initiatives and stakeholder engagement activities will continue to be a priority. These services help the AGCO provide stakeholders with the tailored, clear information that matters to them at the right time and in the right place, in plain language, while acting in the public interest.  

The AGCO continuously monitors its communications strategies and products for usability, engagement, and in response to changing government priorities. The AGCO continues to refine its communication approaches and has developed rapid response strategies to support government announcements and distribute important information in a timely manner.  

Initiatives and Products  

Rapid response to emerging issues  

Working collaboratively with policy, legal, operations, and compliance services, the corporate communications team has established processes to allow strategic and timely communications in response to emerging issues. This includes providing tailored, strategic communications recommendations and planning, supported by the development of diverse products including news releases, information bulletins, direct emails to licensees and registrants, and fact sheets for AGCO’s front line Inspectors and Contact Centre agents. French-language products and Accessibility for Ontarians with Disabilities Act (AODA) compliant content is developed for all public-facing communications products.  

AGCO Website  

The website, agco.ca, is the primary public-facing information and communication channel for the AGCO and its stakeholders. This site is also the gateway to iAGCO, the online service delivery portal.  

The Website Upgrade and Redevelopment Project is underway. It will improve site usability, content, and architecture to address issues, improve user experience, and support the AGCO’s Service Excellence objectives.  

The AGCO measures several key website performance indicators. These analytic reports help gauge how well the site is contributing to business objectives including: making it easy for users to find and understand the information they need, simplifying customer access to AGCO services, communicating and reinforcing the AGCO’s brand and value, and providing content that is accessible and available to users in both official languages. The AGCO also captures direct user feedback to better understand how easily they can find the information they require. All of this is with the goal of continually improving the site to meet the needs of the AGCO’s stakeholders.  

AGCO Engagement Website  

The AGCO also maintains an engagement website, connectagco.ca. The site allows interested stakeholders to follow and participate in engagement opportunities to provide input on AGCO projects, policies, and initiatives.  

Social Media  

As the AGCO’s public profile evolves, it continues to refine its approach to social media and community engagement. To best advance its overarching objectives, its social media strategy, guidelines and mechanisms are reviewed on an ongoing basis. On the AGCO social media channel, information about all new applications for liquor licences and cannabis retail stores are published with links to the process for how members of the public can share their views or concerns.  

To align with the Ontario Public Service’s digital objectives, the AGCO continues to pursue a digital first strategy and is implementing relevant tools to promote an improved digital footprint.

Brand Strategy  

A new brand strategy project will be undertaken for the AGCO in this planning cycle. A strong brand strategy and narrative will serve to support the new strategic plan and emphasize the value of this work to Ontarians by developing better clarity about the AGCO’s role. Ontarians’ understanding of the AGCO will be further strengthened through the development of supporting brand elements that will help to articulate the critical work the AGCO conducts in the interest of the public.  

Ongoing Programs  

Media Relations  

With the launch of Ontario’s new igaming market, licensing of retail cannabis stores, the modernization of liquor, and changes to horse racing regulations, the AGCO is increasingly in the public eye, with media inquiries continuing to rise. The AGCO is now receiving over 400 media inquiries each year, including those from newspapers, radio, magazines, web-based news blogs, and television. The AGCO strives to respond to these requests in a timely and transparent way. To support a consistent and strategic approach, a new Media Relations Policy and procedures will be developed in 2024.  

The AGCO’s Accessibility Plan and Policies are developed in accordance with the Integrated Accessibility Standards Regulation (IASR) under the Accessibility for Ontarians with Disabilities Act, 2005. The Accessibility Plan and Policies outline the AGCO’s commitment and strategy to prevent and remove barriers and improve opportunities for internal stakeholders and the public with disabilities and address the current and future requirements of the Accessibility for Ontarians with Disabilities Act, 2005. The AGCO will conduct an annual review of its accessibility policies as part of a broader commitment to diversity, inclusion, and accessibility going forward.  The AGCO is committed to making all of its communications and publications accessible and continuing to meet the Web Content Accessibility Guidelines.   

The AGCO is always looking to engage with people living with disabilities to understand where there may be opportunities for continuous improvement, and to assist the AGCO in better understanding the barriers that persons with disabilities may experience when accessing services provided by the AGCO. This information will also inform mitigation strategies as part of the ongoing review and development of the AGCO’s Accessibility Plan and Policies.   

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

The AGCO receives its annual spending authority from the Ministry of the Attorney General annual Printed Estimates, as approved by the Ontario Legislature. The AGCO’s expenses are offset by a combination of recoveries and base funding from government.  

Multi-Year Operating Budget (in $000s)  

• * 2023-24 Budget and Forecast (as of Q2 2023-24) do not include expenditures paid on behalf of iGaming Ontario (iGO). Forecasted iGO direct costs incurred by the AGCO on behalf of iGO are $12.1M.  
• ** Represents forecasted revenue figures that have been submitted through the 2024-25 Strategic Planning Process (SPP); includes impact of PSAS accounting standard PS 3400 which went into effect on April 1, 2023.  

AGCO Revenue – Key Explanations  

• Beginning on April 1, 2023, the AGCO began recognizing inflows from the Horse Racing sector as revenue; previously, inflows were used to directly offset Horse Racing regulatory costs as recoveries.  
• Revenue from internet gaming (e.g., registration fees) continues to increase with the rise in the number of live igaming sites. As of October 2023, there are 63 live sites and a total of 70 sites are forecasted to be live by the end of 2023-24.  

AGCO Expenditures and Recoveries – Key Explanations

• The overall forecasted $17.4M net total variance in 2023-24 (as of Q2) between net operating budget and forecast is mainly due to a combination of:  
  • Forecasted underspending of approximately $1.7M in salaries and benefits, primarily due to employee turnover and vacancies.  
  • Forecasted underspending of $12.9M in services related to the cost of external consultants used to assist in eligibility assessments; note that the $12.9M in underspending is planned to be reallocated to the 2024-25 budget through the 2024-25 Strategic Planning Process (SPP).  
  • Forecasted under recoveries of $31.5M between budget and forecast due to the AGCO’s current funding framework and authorities in place.  

AGCO Capital Assets – Key Explanations  

• The Capital Budget includes iAGCO betterments to support and enhance iAGCO for the new iGaming Open Market line of business, liquor reform, and other government-driven policy changes.  
• The Capital Budget also includes IT hardware for the purchase of personal computing devices, mainframes, data network equipment, and storage devices.
• Underspending of $1.1M in Capital Assets in 2023-24 is planned to be reallocated to the 2024-25 budget through the 2024-25 Strategic Planning Process (SPP).  

Organizational performance measurement enables the AGCO to improve program effectiveness by setting targets, assessing data, and evaluating results. Through continuous evaluation and feedback, the AGCO is able to position itself to deliver on the goals and objectives laid out in its Strategic Plan.  

Recent results for 2023-24 (see below) highlight the AGCO’s achievements in each of its three strategic goals: Modern Regulator, Service Excellence, and People First. These achievements are attributable to the important projects and initiatives being undertaken at the AGCO, which include:  

• The ongoing optimization of iAGCO.
• A continued focus on stakeholder engagement and an enhanced approach to stakeholder education.
• A modern and evolving regulatory approach that is risk-based, data-informed, outcomes-based, and compliance-focused.
• The ongoing development of a hybrid work model that provides a better work-life balance, while allowing ample opportunity for meaningful employee engagement, thereby enabling the AGCO to deliver on its strategic priorities.
• The continued development of a strategy that acknowledges and fosters diversity, inclusion, and accessibility at the AGCO.  

Internal Development

Performance measurement at the AGCO continues to evolve evidence-based evaluation practices to help internal and external stakeholders better understand the AGCO’s progress with its strategic goals and mandate. As a key milestone in its evidence-based journey, the AGCO Balanced Scorecard was developed and delivered at the beginning of this fiscal year. The Scorecard hosts a set of performance outcomes and measures that reflect key areas of agency focus and continues to evolve to reflect the increased complexity and breadth of the AGCO’s mandate. The Scorecard will be used as a key input in assessing the AGCO’s progress towards its intended outcomes, and by extension, its strategic priorities.

Modern Regulator

Digital First

AGCO provides user-based services and information through multiple windows and service channels, anytime and anywhere.

• Outcome metric: % of users using digital options to transact with the AGCO meets or exceeds the target of 85%.  

• Note: Number of digital applications and complaints received to the AGCO are used to calculate this total.  

Service Excellence

Service Experience and Value for Money 

A service-centered design that optimizes the service experience, engages customers proactively, streamlines processes, reduces regulatory burden, and identifies opportunities for improvements.

• Output metric: % of applications for SOPs auto-issued meets or exceeds the target of 90%.

Note: AGCO has clear criteria for auto-issuance of applications which promote efficiency and reduced burden while maintaining regulatory controls in the public interest. Fluctuations slightly above or below the target are expected due to the nature of each individual application received within that fiscal year.  

People First

Employee Experience 

The level of engagement and enablement is directly correlated with higher productivity, increased motivation, and job satisfaction.

• Outcome metric: % of AGCO staff who would recommend AGCO as a place to work meets or exceeds the target of 75%.  
• Outcome metric: % of AGCO staff who believe they have opportunities to have their ideas adopted and put into use meets or exceeds the target of 70%.  

Diversity, Inclusion and Accessibility 

The cultivation of a workforce that is reflective of Ontario’s diversity, an inclusive culture free of discrimination and harassment, and service delivery that is accessible, culturally aware, relevant and responsive.

• Outcome metric: % of AGCO staff who believe the AGCO is making progress on its DI&A commitment meets or exceeds the target of 91%.  
• Outcome metric: % of AGCO staff who feel able to bring their “whole self” to work meets or exceeds the target of 92%.