Notes to the Financial Statements

Notes to the Financial Statements For the Year Ended March 31, 2024 ($'000)

  1. Nature of operations
    The Alcohol and Gaming Commission of Ontario (AGCO) is a regulatory board-governed agency incorporated without share capital, that reports to the Ministry of the Attorney General (MAG). The agency was established on February 23, 1998 under the Alcohol and Gaming Regulation and Public Protection Act, 1996, which was amended in 2018 and re-named the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996 (ACGRPPA). On November 29, 2021, the ACGRPPA was repealed and the Alcohol and Gaming Commission of Ontario Act, 2019 (AGCO Act) was proclaimed into force, continuing the AGCO under a new statute.

    The AGCO is responsible for regulating the alcohol, gaming, horse racing and cannabis retail sectors in accordance with the principles of honesty and integrity, and in the public interest. In so doing, the AGCO administers the Liquor Licence and Control Act, 2019, the Gaming Control Act, 1992, the Horse Racing Licence Act, 2015 and the Cannabis Licence Act, 2018. The AGCO also administers the charity lottery licensing Order-in-Council 1413/08.

    iGaming Ontario was established on July 6, 2021 as a subsidiary corporation of the AGCO. See Note 14 for further disclosure pertaining to the AGCO’s relationship with iGaming Ontario.

    As a regulatory agency with a governing board reporting to MAG, the AGCO receives its annual spending authority from the Ministry’s printed estimates, as approved by the Ontario Legislature. The AGCO is funded from a combination of revenue from the Consolidated Revenue Fund and charges to the regulated sectors (fees and cost recoveries).

    Pursuant to the Income Tax Act, the AGCO is exempt from income taxes.
  2. Significant accounting policies
    1. Basis of accounting
      These financial statements have been prepared in accordance with Canadian Public Sector Accounting Standards (PSAS) established by the Canadian Public Sector Accounting Board.

    2. Changes in accounting policies - Implementation of PS 3400, Revenues
      On April 1, 2023, the AGCO implemented PS 3400, Revenues, in accordance with the transitional provisions set out in the standard and the requirements for changes in accounting policies in PS 2120, Accounting Changes. The impacts of implementing PS 3400 are described below.

      PS 3400 establishes standards on how to account for and report common types of revenues in the public sector that are not addressed in an individual standard in the PSA Handbook. Specifically, PS 3400 differentiates between revenue arising from transactions that include performance obligations (“exchange transactions”), and transactions that do not have performance obligations (“non-exchange transactions”).

      The AGCO adopted the standard on April 1, 2023 and applied the requirements of the standard retroactively with restatement of the prior period.

      Transactions with performance obligations 
      Under PS 3400, the AGCO recognizes revenue from exchange transactions when it satisfies a performance obligation by providing the promised goods or services to a payor. A performance obligation is satisfied over a period of time or at a point in time depending on the characteristics of the promised goods or services. Revenue is measured at the amount of consideration to which the AGCO expected to be entitled to in exchange for the promised goods or services.

      Transactions without performance obligations 
      Under PS 3400, the AGCO recognizes revenue from non-exchange transactions when it has the legislative authority to claim or retain an inflow of economic resources and identifies a past transaction or event that gives rise to an asset. Revenue is measured at the amount of cash or cash equivalents received or receivable.
      The implementation of PS 3400 had a significant impact on the AGCO’s accounting for licences and registrations. See below for a description of the impact on each revenue stream:

      • Licences and registrations – Previously, the AGCO deferred and amortized revenue relating to licences evenly over the license term. PS 3400 requires the AGCO to recognize revenue upon issuance of the licence to the customer because there is no continuing performance obligation after the licence is issued. Unearned revenue relates to payments received from customers in advance of the issuance of licences.
      • Regulatory charges – Previously, the AGCO deferred revenue for cost recoveries collected that exceeded the actual expenditures incurred during the fiscal year. Since these are non-exchange transactions with no performance obligations, PS 3400 requires that the AGCO recognize revenue when it has exercised its legislative authority by issuing an invoice to an organization.

      The AGCO’s accounting policies for its revenue streams are disclosed in detail in Note 2e. The amount of adjustment for each financial statement line item affected by the adoption of PS 3400 for the current and prior years is illustrated in the table below.

      1. Impact on surplus or deficit 

         

        For the Year Ended
        March 31, 2023

        Annual deficit – as previously reported

        $ —

        Increase (decrease) due to change in timing of recognition for: 
                 		 
        Licence and registration fees

        2,171

        Regulatory charges - gaming sector

        (1,323)

        Contribution by the Province

        (848)

        Annual deficit – as restated for adoption of PS 3400

        $ —

      2. Impact on assets and liabilities
         

         

        As at April 1, 2022

        As previously reported

        PS 3400
        adjustments

        As restated

        Unearned revenue

        $ 32,958

         

        $ (17,975)

        $ 14,983

        Customer deposits

        7,720

        (7,084)

        636

        Due from the Province

        34,329

        (25,059)

        9,270


         

         

        As at March 31, 2023

        As previously reported

        PS 3400 adjustments

         

        As restated

        Unearned revenue

        $ 37,296

        $ (26,452)

        $10,844

        Customer deposits

        7,317

        (6,231)

        1,086

        Due from the Province

        45,155

        (32,683)

        12,472

    3. Use of estimates

      In preparing the financial statements, management is required to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods.

      Items requiring the use of significant estimates include the useful life of capital assets, other employee future benefits and accrued liabilities.

      Estimates are based on the best information available at the time of preparation of the financial statements and are reviewed annually to reflect new information as it becomes available. Actual results could differ from these estimates.

    4. Currency 

      The financial statements are presented in Canadian dollars.

      At the transaction date, revenue or expenditures in currencies other than the AGCO’s functional currency are recognized in Canadian dollars at the exchange rate in effect at that date. The AGCO is not impacted by the remeasurement gains and losses caused by foreign currency, because its cash, including foreign exchange rates, is handled by the Ministry of Public and Business Service Delivery without charge.

    5. Revenue recognition
       

      1. Revenue from transactions with performance obligations 

        Licence and registration fees
        Fee revenue from licences and registrations collected from the gaming, liquor, cannabis-retail and horse racing sectors is recognized when the licence or registration is issued to the customer. Revenue from the issuance of licences is recognized based on the transaction price specified in the terms of sale. Payment of the transaction price is non-refundable and is due when a customer applies to purchase or renew a licence. Refer to Note 9 for a breakdown of licence and registrations fees disaggregated by regulated sector.

        Cost recoveries from iGaming Ontario 
        The AGCO provides services to iGaming Ontario under a Shared Resources Agreement. The AGCO’s performance obligations in connection with these services are satisfied over time through the rendering of services. The transaction price is equal to the costs incurred by the AGCO in providing these services. Refer to Note 14 for further details.

      2. Revenue from transactions without performance obligations 

        Regulatory charges - gaming sector
        Regulatory Charges - Gaming Sector is primarily comprised of regulatory charges issued to the Ontario Lottery and Gaming Corporation (OLG), land-based casino operators and internet gaming operators. The AGCO has the legislative authority to direct payments from the OLG and iGaming Ontario under the Alcohol and Gaming Commission of Ontario Act, 2019. Further, pursuant to operator agreements between the OLG and its land-based casino operators and operator agreements between iGaming Ontario and its internet gaming operators, land-based casino operators and internet gaming operators are responsible for paying costs charged by the AGCO in regulating these markets. The AGCO recognizes revenue when it charges these entities, which it does so by invoicing them. The revenue recognized is based on the amount specified in the invoice. Refer to Note 9 for a breakdown of these regulatory charges for recovery of costs disaggregated by major type. 

        Regulatory charges - horse racing sector 
        The AGCO charges regulatory fees to the operators of racetracks in Ontario for the purpose of defraying part of the costs of regulating the conduct of horse racing in Ontario. These charges are primarily comprised of fixed annual fees charged to Woodbine Entertainment Group (WEG) on behalf of racetrack operators. The AGCO recognizes revenue when it recovers from WEG, which it does so by invoicing them. The revenue recognized is based on the amount specified in the invoice.

        Monetary penalties 
        Under Section 14 of the AGCO Act, monetary penalties may be imposed with respect to contraventions of any of the alcohol, cannabis, gaming and horse racing statutes or any regulations made under them. Under Subsection 12 (2) of the AGCO Act, monetary penalties can be only used for education, training, and awareness purposes. Monetary penalties imposed are recorded as a liability until the resources are used for the purposes specified under the AGCO Act. Revenue is recognized in the period in which the resources are used for the purposes specified under the AGCO Act. The associated liability is recorded in unearned revenue in the Statement of Financial Position and the associated revenue is recorded in other revenue in the Statement of Operations and Accumulated Deficit.

    6. Expenditures recognition

      Expenditures are recognized on an accrual basis. Expenditures are recognized in the fiscal year that the events giving rise to the expense occur and resources are consumed.

    7. Financial instruments

      The AGCO’s financial instruments are accounts payable and accrued liabilities, accounts receivable, due from the Province and due from iGaming Ontario. These financial instruments are all measured at fair value, which approximates their carrying values due to the short-term nature of these financial instruments.

    8. Tangible capital assets

      Tangible capital assets are recorded at cost, which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the assets.

      The cost of tangible assets is amortized on a straight-line basis over estimated useful lives as follows:

       Useful life
      Business application software10 years
      Information technology hardware3–6 years

      Assets under construction are not amortized until construction is complete and the assets are ready for their intended use.

  3. Accounts payable and accrued liabilities
     

     

    2024

    2023

    Accounts payable

    $ 1,519

    $ 1,134

    Operational expenses accruals

    13,150

    5,249

    Accrued other employee benefits

    3,295

    3,082

    Capitalized assets accruals

    234

    —

     

    $ 18,198

    $ 9,465


     

    Accounts payable relate largely to normal business transactions with third-party vendors and subject to standard provincial government payment terms.

    Operational expenses accruals relate to goods or services received but that have not been paid, including regular salaries and wages, employee benefits and normal operating expenses.

    Accrued other employee benefits include employee vacation credits accruals and salary continuance arrangements.

  4. Unearned revenue

     

     

    2024

    2023 Restated
    (Note 2b)

    Licences and registrations

    $ 9,210

    $ 9,303

    Monetary penalties

    2,269

    1,541

     

    $ 11,479

    $ 10,844

    Licences and registrations 
    The changes in unearned revenue for licences and registrations, disaggregated by regulator sector, are presented in the tables below:  

     

    Balance, 
    beginning of year

    Received 
    during year

    Recognized 
    during year

    2024 
    Balance, 
    end of year

    Gaming

    5,037

    20,451

    (21,198)

    4,289

    Liquor

    2,450

    15,766

    (14,435)

    3,781

    Cannabis retail

    1,759

    4,924

    (5,596)

    1,088

    Horse Racing

    57

    2,388

    (2,392)

    53

     

    $ 9,303

    $ 43,529

    $ (43,622)

    $ 9,210

     

    Balance, beginning of year

    Received during year

    Recognized during year

    2023 Restated (Note 2b)

    Balance, end of year

    Gaming

    7,269

    18,939

    (21,171)

    5,037

    Liquor                                              

    3,673

    12,485

    (13,708)

    2,450

    Cannabis retail

    2,857

    5,845

    (6,943)

    1,759

    Horse Racing                            

    57

    2,126

    (2,126)

    57

     

    $ 13,856

    $  39,395

    $ (43,948)

    $ 9,303


    Monetary penalties 

     

    2024

    2023

    Balance, beginning of year

    $ 1,541

    $ 1,124

    Additions during the year

    741

    423

    Revenue recognized during the year

    (13)

    (6)

    Balance, end of year

    $ 2,269

    $ 1,541

  5. Employee future benefits
    1. Pension costs
      Certain employees of the AGCO participate in the Public Service Pension Plan (PSPP) and the Ontario Public Service Employees Union Pension Plan (OPSEUPP), which are defined benefit pension plans for employees of the Province and many provincial agencies. The Province of Ontario is the sole sponsor of the PSPP and a joint sponsor of the OPSEUPP with the Ontario Public Service Employees Union (OPSEU). The sponsors of these plans determine the AGCO’s annual payments to the respective plans. The AGCO’s responsibilities with regard to the PSPP and the OPSEUPP are limited to its contributions. Payments made to the plans are recognized as an expenditure when employees have rendered the service entitling them to the contributions. The AGCO’s required annual contribution of $6,115 (2023 – $5,613), is included in Employee Benefits in the Statement of Operations and Accumulated Deficit.

    2. Other employee future benefits
       

      The obligations of separation, long-term income protection (LTIP) pension contributions, and time banking entitlements earned by eligible employees are included in Other Employee Future Benefits in the Statement of Financial Position.

       

      2024

      2023

      Separation entitlements

      $ 5,953

      $ 4,507

      LTIP pension contributions

      2,467

      2,493

      Time bank entitlements

      1,193

      876

       

      $ 9,613

      $ 7,876

      1. Separation entitlements
         

        Employees hired prior to April 1, 2015 and who have completed at least five (5) years of continuous service as a permanent full-time employee with the AGCO as of April 1, 2015, will be eligible for a separation payment equivalent to one week’s base pay for each year of active service up to a maximum of sixteen (16) weeks upon retirement, resignation, or death.

        Employees hired prior to April 1, 2015 and who had not completed five (5) years of continuous service as a permanent full-time employee as of April 1, 2015, will only be eligible for a separation payment in the event of retirement, resignation, or death if they have completed at least ten (10) years of continuous service as a permanent full-time employee as of the date of their retirement, resignation, or death. An employee who meets these requirements will be entitled to separation payment equivalent to one week’s base pay for each year of active service up to a maximum of sixteen (16) weeks upon retirement, resignation, or death.

        The separation entitlements were calculated using a discount rate of 4.14% (2023 - 3.64%) and expected average remaining service life of 11 years (2023 - 13 years). The estimated annual increase in salaries used in the calculation is 3% to 3.5% (2023 – ranged from 1% to 1.5%).

      2. As required by the PSPP and the OPSEUPP, the AGCO makes the regular employer contributions and the members’ contributions to the pension plans for periods when members are eligible for or receive LTIP benefits.

        The cost of living adjustment of pension contributions was determined by the pension boards, 4.8% starting January 2023 (2023 - 6.3%). Each LTIP arrangement was evaluated individually, based on term and the corresponding discount rate using weighted average rate from Ontario bond yield curve rates.
      3. Eligible AGCO employees can bank up to 10 vacation days at the end of each calendar year into the “Time Bank”, with a cap of 125 days in total. These time bank days can only be used when employees leave the organization as time off or a lump sum pay.

        The time bank entitlements were calculated using a discount rate of 4.02% (2023 - 3.64%) and expected average remaining service life of 9 years (2023 - 10 years). The estimated annual increase in salary ranges used in the calculation was 3% (2023 - 1.5%).

    3. Non-pension post-employment benefits

      The costs of non-pension benefits for eligible pensioners are paid by the Province of Ontario and are not included in these financial statements.

  6. Customer deposits

    Customer deposits is primarily comprised of deposits for gaming eligibility assessments. Under Section 9 of the Gaming Control Act, all applicants/registrants are required to pay the reasonable costs of an inquiry or investigation related to gaming registrations. Revenue is recognized as the work relating to the gaming investigations are performed. Revenue of $1,600 (2023 - $2,117) is reported in regulatory charges - gaming sector in the Statement of Operations and Accumulated Deficit.

  7. Tangible capital assets

     

    Business application software

    Information technology hardware

    Construction in progress

    2024

    Cost  

     

     

    Opening balance

    $ 17,679

    $ 4,607

    $ —

    $ 22,286

    Additions

    —

    619

    708

    1,327

    Disposals

    —

    (891)

    —

    (891)

    Transfer from construction in progress

    —

    —

    —

    —

    Closing balance

    17,679

    4,335

    708

    22,722

    Accumulated amortization  

     

     

    Opening balance

    6,413

    2,806

    —

    9,219

    Additions

    1,487

    630

    —

    2,117

    Disposals

    —

    (891)

    —

    (891)

    Closing balance

    $ 7,900

    $ 2,545

    $ —

    $ 10,445

    Net book value

    $ 9,779

    $ 1,790

    $ 708

    $ 12,277

     

     

    Business application software

    Information technology hardware

    Construction in progress

    2023

    Cost

     

     

     

     

    Opening balance

    $ 17,679

    $ 3,785

    $ 181

    $ 21,645

    Additions

    —

    532

    263

    795

    Disposals

    —

    (154)

    —

    (154)

    Transfer from construction in progress

    —

    444

    (444)

    —

    Closing balance

    17,679

    4,607

    —

    22,286

    Accumulated amortization

     

     

     

     

    Opening balance

    4,927

    2,504

    —

    7,431

    Additions

    1,486

    456

    — 

    1,942

    Disposals

    —

    (154)

    —  

    (154)

    Closing balance

    $ 6,413

    $ 2,806

    $ —

    $ 9,219

    Net book value

    $ 11,266

    $ 1,801

    $ —

    $ 13,067

  8. Licence and registration fees

    The table below presents licence and registrations fees disaggregated by regulated sector:

     

    2024

    2023 Restated
    (Note 2b)

    Gaming

    $ 21,199

    $ 21,171

    Liquor

    14,435

    13,708

    Cannabis retail

    5,596

    6,943

    Horse racing

    2,392

    2,126

     

    $ 43,622

    $ 43,948

  9. Regulatory charges — gaming sector

    The table below presents regulatory charges disaggregated by major type:

     

    2024

    2023 Restated
    (Note 2b)

    Land-based casino operators

    $ 25,525

    $ 17,197

    Ontario Lottery & Gaming Corporation (Note 10b)

    10,842

    7,709

    Internet gaming operators (Note 14)

    5,543

    4,254

    Eligibility assessments – gaming applicants (Note 6)

    1,600

    2,117

     

    $ 43,510

    $ 31,277

  10. Related party transactions 

    The Province of Ontario is a related party as it is the controlling entity of the AGCO. Organizations that are commonly controlled by the Province of Ontario are also related parties of the AGCO. Transactions with related parties are outlined below, except for transactions with the AGCO’s subsidiary, iGaming Ontario, which are outlined in Note 14.

    All related party transactions were measured at the exchange amount, which is the amount of consideration established and agreed upon by the related parties.

    1. Ministries of the Province of Ontario

      During the course of the year, the AGCO entered into the following transactions with various Ministries of the Province of Ontario:

      1. (i) The AGCO has statutory authority to carry out specific types of investigations, inspections and other similar activities in accordance with the Acts and regulations that it administers. The AGCO covers the costs for dedicated Ontario Provincial Police (OPP) officers within its Investigation and Enforcement Bureau to perform these activities. A Memorandum of Understanding between the AGCO and OPP establishes that the AGCO is responsible for funding the salaries, wages, expenses and administrative support costs for these OPP officers. For the year ended March 31, 2024, the AGCO was charged $19,022 (2023 - $16,877) by the Ministry of the Solicitor General for these costs and is included in Salaries and Wages, Employee Benefits and Services in the Statement of Operations and Accumulated Deficit.
      2. The Ministry of Public and Business Service Delivery (MPBSD) provides the AGCO with network, telecommunication and administrative services. For the year ended March 31, 2024, the AGCO was charged $1,295 (2023 - $1,347) by MPBSD for these costs and are included in Transportation and Communication, Services in the Statement of Operations and Accumulated Deficit. MPBSD also provides the AGCO with other services such as accounting, tax remittance and cash management without charge.
      3. The Ministry of Transportation (MTO) supplies the AGCO with leased vehicles that are used by employees to perform their duties. For the year ended March 31, 2024, the voted appropriation for these costs was transferred to MTO. The costs charged for the year ended March 31, 2023 was $848 and included in Services in the Statement of Operations and Accumulated Deficit.
      4. For the year ended March 31, 2024, MAG charged the AGCO $236 (2023 - $315) for legal services, horse racing regulatory costs, Workplace Safety Insurance Board charges and other administrative services and is included in Salaries and Wages, Employee Benefits and Services in the Statement of Operations and Accumulated Deficit.
      5. MAG provides the AGCO with leased office space at 2 (2023 – 2) locations across the province. The costs of the leases are paid by MAG out of their voted appropriation. For the year ended March 31, 2024, the costs of rental were $4,091 (2023 - $3,893).
    2. Ontario Lottery and Gaming Corporation (OLG)
      The AGCO charges the OLG for the purpose of defraying the costs of regulating the OLG’s lotteries, internet gaming (iGaming), charitable gaming (cGaming) and OLG land- based casino(s). For the year ended March 31, 2024, $10,842 (2023 - $7,709) was recorded in regulatory charges - gaming sector in the Statement of Operations and Accumulated Deficit.

  11. AGCO Board of Directors' remuneration

    The AGCO's Board of Directors are appointed through an Order in Council by the Lieutenant Governor in Council. Total remuneration paid to the Board of Directors during the year was
    $123 (2023 - $122).

  12. Financial instruments risks
    1. Interest rate risk
      Interest rate risk is the risk the fair value or future cash flows of financial instruments will fluctuate due to changes in market interest rates. The AGCO is subject to interest rate risk on its other employee future benefits liability. The discount rates used in future cash flows for other employee future benefits are based on Ontario bond yield curve depending on employee expected average remaining service life or the term of the future cash flows.
    2. Credit risk
      Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. The AGCO’s exposure to credit risk is minimal as the majority of the receivables are from the Province of Ontario and iGaming Ontario (a related party under common control by the Province of Ontario).
    3. Currency risk
      The AGCO’s exposure to currency risk is minimal as few transactions are in currencies other than Canadian dollars.
    4. Liquidity risk
      The AGCO’s exposure to liquidity risk is minimal as the AGCO may recover its costs through revenue and recoveries from entities that form part of the regulated sectors. As well any deficiency of revenue over expenses is absorbed by the Province and is reflected in the Due from the Province on the Statement of Financial Position.

  13. Due from the Province

    Due from the Province represents the difference between cash receipts submitted to the Province by the AGCO and the AGCO’s expenses paid. Should the AGCO incur a deficit in any fiscal year, the deficit is covered by the Province and is reflected in Contribution by the Province in the Statement of Operations and Accumulated Deficit.

    Cash received by the AGCO is deposited directly into the Consolidated Revenue Fund (CRF). The AGCO’s invoices are paid by the Province’s CRF on behalf of the AGCO and recorded against the AGCO’s budget. Goods and services provided by other ministries in Note 10 are treated as inter-ministry chargebacks and included in Due from the Province in the Statement of Financial Position. 

  14. iGaming Ontario
    Nature of Relationship 
    iGaming Ontario was created on July 6, 2021 by Ontario Regulation 517/21 under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996 and continued by Ontario Regulation 722/21 under the Alcohol and Gaming Commission of Ontario Act, 2019. iGaming Ontario is responsible to conduct and manage internet gaming offered through private gaming operators.
    In addition to its regulatory responsibilities over the internet gaming market, the AGCO is responsible to oversee iGaming Ontario’s conduct and management of internet gaming, which includes recommending appointments to the board of iGaming Ontario to the Attorney General. The Attorney General is responsible for appointing board members to iGaming Ontario based on these recommendations. As a result, the financial results of iGaming Ontario are not consolidated into these financial statements as iGaming Ontario is controlled by the Province of Ontario and is consolidated into the Province’s financial statements.

    Shared Resources Agreement 
    For the year ended March 31, 2024, the AGCO and iGaming Ontario entered into a Shared Resources Agreement (SRA). Through the SRA, the AGCO provided iGaming Ontario with payroll, procurement, facilities, customer services, market research, and communication services on a cost recovery basis. The AGCO also directly paid expenditures (including salaries and benefits of iGaming Ontario employees and vendor invoices). The associated recovery of these costs, exclusive of HST, is reflected in Recoveries – iGaming Ontario in the Statement of Operations and Accumulated Surplus and amounts to $11,360 (2023 -
    $9,474). As at March 31, 2024, the balance of $1,316 (2023 - $2,703) is outstanding and is included in Due from iGaming Ontario in the Statement of Financial Position.

    Recovery of Costs - iGaming Ontario’s Internet Gaming Market 
    Under Section 12.1 of the AGCO Act, the AGCO is permitted to direct payment from iGaming Ontario. The operator agreements between iGaming Ontario and igaming operators establish that igaming operators are responsible for costs charged by the AGCO in regulating the internet gaming market, regardless of whether the costs are initially billed to iGaming Ontario by the AGCO or billed directly to the igaming operator. The AGCO billed and collected payments from the igaming operators directly. For the year ended March 31, 2024, the AGCO recognized $5,543 (2023 - $4,254) in recoveries from igaming operators to offset regulatory costs incurred during the year.
  15. Other matters

     Bill 124 
    A number of unions challenged the legality of Protecting a Sustainable Public Sector for Future Generations Act, 2019 (the Act or Bill 124), which limited public sector wage increases to 1% per year for a three-year moderation period. The Superior Court of Justice, in a decision issued November 29, 2022, held that the Act violated the applicants’ right to freedom of association under section 2(d) of the Canadian Charter of Rights and Freedoms by interfering with collective bargaining rights. As a result, it was declared to be "void and of no effect".

    The AGCO, alongside the Ontario Public Service and several other agencies, agreed to a clause that would bring parties together to negotiate a remedy in the event that Bill 124 was struck down by a court of competent jurisdiction. In May 2024, the Commission resolved this matter through negotiated increases (retroactive salary adjustment totalling 6%) to remedy the impacts of Bill 124. The estimated incremental retroactive impact is included in Salaries and Wages and Employee Benefits in the Statement of Operations and Accumulated Deficit.

    Liquor Retail Expansion 
    Subsequent to year end, the Province announced details on its plans to expand the beverage alcohol marketplace. The phased expansion and rollout will begin on July 18, 2024, where existing grocery stores that are currently licensed to sell beer, cider or wine will also be able to sell ready-to-drink beverages and large-pack sizes of beer. Eligible convenience stores will be able to enter the marketplace no earlier than September 5, 2024 and the remaining grocery stores no earlier than October 31, 2024. All participating grocery and convenience stores will be able to sell eligible beer, cider, wine, and ready-to-drink products.

    The AGCO is responsible for regulating alcohol sale and service in Ontario, including licensing eligible grocery stores and convenience stores. The AGCO begins accepting applications for the new Convenience Store Licence and Grocery Store Licence on June 17, 2024.
  16. Comparative figures
    Certain comparative figures have been reclassified to conform to the current year’s presentation.