Analysis of Financial Performance

(In $000s)

2020-21

2021-22

(excluding iGO)1

Increase/ (Decrease)

Revenue

 

 

 

Fees, Licences and Registrations

$         22,649

$        29,172

$            6,523

Recoveries – Gaming Sector

13,446

19,735

6,289

Other Revenue

192

82

(110)

TOTAL Program Revenue

36,287

48,989

12,702

Expenditures

 

 

 

Salaries and Wages

61,408

63,713

2,305

Employee Benefits

13,910

14,449

539

Other Direct Operating Expenditures (ODOE)

 

 

 

Transportation and Communications

925

938

13

Services

11,927

13,908

1,981

Supplies and Equipment

433

693

260

Amortization of Tangible Capital Assets

1,631

1,771

140

Bad Debts

-

7

7

TOTAL Program Expenditures

90,234

95,479

5,245

Annual Deficit from Operations

= Contribution by the Province

53,947

46,490

(7,457)

Acquisition of Tangible Capital Assets

1,121

2,477

1,356

Note:

1.    iGaming Ontario (iGO): The figures reported in the above table exclude $7.3M in expenditures (and the associated $7.3M in recoveries) that the AGCO incurred on behalf of iGO from July 6, 2021 (date of iGO’s legal establishment) to March 31, 2022.

Fees, Licences and Registrations Revenue in 2021-22 increase of $6.5M is due to higher number of Cannabis applicants, and higher Gaming, Liquor and Horse Racing revenues since extensions were granted in FY2020-21.

$6.3M increase in Recoveries – Gaming Sector is attributed to no recoveries from casinos and cGaming line of business for FY20-21 as a result of COVID-19 closures.

Overall increase in Salaries and Wages and Employee Benefits Expenditures is mainly due to new staff hiring to regulate the igaming open market, as well as an increase in the cost of employee benefits. Increase in Services is due to additional one-time contracts and costs associated with changes in operations. Increase in Amortization of Tangible Capital Assets reflects the full year cost of Regulatory Assurance Solution (RAS), including iAGCO, after its final phase was completed in October 2020.

Acquisition of Tangible Capital Assets increase is due to iAGCO enhancements to support the igaming line of business, liquor reform, and other operational changes.

iGaming Ontario (iGO) Operating Expenditures and Recoveries are excluded from this analysis. iGO S&W, Benefits and ODOE Expenditures incurred by AGCO on iGO’s behalf from July 6, 2021 to March 31, 2022, in a total of $7.3M (excluding HST), are reported as AGCO Operating Expenditures, Recoveries – iGaming Ontario and Due from iGaming Ontario in AGCO’s financial statements.