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).