Financial Performance

Expense Category 
(In $000s)

2022-23 
(excluding iGO*)

2023-24 
(excluding iGO*)

Increase/ 
(Decrease)

Expenditures

 

 

 

Salaries and Wages

68,738

79,808

11,070

Services

12,756

13,296

540

Benefits

15,077

18,640

3,563

Capital Amortization

1,942

2,117

175

Transportation and Communications (T&C)

1,386

1,303

(83)

Supplies and Equipment (S&E)

747

1,148

401

Sub-Total Gross Expenditures

100,646

116,312

15,666

Less: Revenue

84,308

94,881

10,573

Annual Deficit

(16,338)

(21,431)

(5,093)

Capital Assets

795

1,327

532

* Of the $11,360 in cost recoveries from iGaming Ontario (iGO) as recorded on AGCO’s financial statements, $10,827 relates to direct expenditures (salaries/benefits of iGO employees and vendor invoices) that AGCO incurred on behalf of iGO and was subsequently reimbursed. These costs (along with the corresponding recovery of these costs) are excluded from the chart above.

Overall increase in FY 23-24 Salaries and Wages and Benefits Expenditures is mainly due to increases in the number of employees and employee salary increases. Increase in Services, and Supplies and Equipment is mainly due to additional spending on projects including the implementation of a new Enterprise Resource Planning system, the AGCO's Funding Framework Review and the AGCO's Digital Strategy.

Revenue comprises of licence and registration fees, regulatory charges and cost recoveries. Decrease in fees and charges in FY 23-24 is due to timing of licence renewals as well as new revenue recognition criteria implemented as of April 1, 2023 also resulting in timing differences. Increase in FY 23-24 regulatory charges and cost recovery is attributed to an increase in regulatory work done in gaming sector, as well as increased overall gross expenditures.

Capital spending in FY 23-24 can be attributed to increase on iAGCO enhancements to improve flexibility, simplify integration with diverse platforms, and promote more efficient processes. In addition, the increase is also attributed to the refresh of IT Hardware and Network Equipment.

Increase in FY 23-24 amortization expenses is due to correlating increase in capital spending on refresh of IT Hardware and Network Equipment.