Section 11: Three-year Financial Plan and Budget
Last Updated
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)
| Expense Category | 2023-24 | 2023-24 | Variance | 2024-25 | 2025-26 | 2026-27 |
| Budget * | Forecast * | Budget | Budget | Budget | ||
| Salaries & Wages | 75,946.00 | 74,174.10 | 1,771.90 | 75,837.40 | 75,837.40 | 75,837.40 |
| Benefits | 15,761.30 | 15,846.70 | -85.40 | 16,143.70 | 16,143.70 | 16,143.70 |
| Transportation & Communications | 1,545.80 | 1,537.80 | 8.00 | 1,540.60 | 1,540.60 | 1,540.60 |
| Services | 30,771.50 | 18,281.50 | 12,490.00 | 16,965.20 | 16,965.20 | 16,965.20 |
| Supplies & Equipment | 967.90 | 1,006.10 | -38.20 | 962.60 | 962.60 | 962.60 |
| Subtotal | 124,992.50 | 110,846.20 | 14,146.30 | 111,449.50 | 111,449.50 | 111,449.50 |
| Less: Recoveries | 74,169.80 | 42,640.70 | 31,529.10 | 60,825.30 | 60,825.30 | 60,825.30 |
| Net Total | 50,822.70 | 68,205.50 | -17,382.80 | 50,624.20 | 50,624.20 | 50,624.20 |
| Capital | 2,557.20 | 1,492.80 | 1,064.40 | 489.60 | 1,234.70 | 251.90 |
| Revenue ** | 44,848.81 | 44,848.81 | - | 50,008.29 | 46,124.05 | 49,205.52 |
- * 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).