Ontario iGaming Licence (iGO/AGCO): How Canada’s First Open Market Works

Ontario launched North America’s most open regulated online gambling market in April 2022. Unlike most Canadian provinces, which run government monopolies, Ontario allows private operators to offer casino, sports betting and poker to its residents under a two-part model. It has quickly become one of the largest regulated markets in the world. Here is how entry works.

A two-body model

Operators deal with two organisations. The Alcohol and Gaming Commission of Ontario (AGCO) is the regulator: it registers operators and gaming-related suppliers and sets the Registrar’s Standards that govern conduct. iGaming Ontario (iGO), a government agency, conducts and manages the games in legal terms and enters into a commercial operating agreement with each operator. Both AGCO registration and an iGO agreement are needed before launch.

Registration with AGCO

Applicants submit detailed corporate, financial and personal disclosure for the company, its owners and key executives, and pay registration fees. Suppliers of critical gaming systems, game content, platforms and certain services must also be registered as gaming-related suppliers. AGCO’s approach is standards-based rather than prescriptive: operators must meet outcomes defined in the Registrar’s Standards for game integrity, player protection, AML and advertising, and demonstrate independent testing of their systems.

The economics

Ontario does not levy a gaming tax in the conventional sense. Instead, operators pay a revenue share to iGO under the operating agreement, currently set at 20% of gaming revenue, alongside AGCO fees. Federal and provincial corporate taxes apply as usual. Operators must also comply with Canadian AML rules and register with FINTRAC as appropriate.

Advertising and player protection

Ontario prohibits the public advertising of inducements, bonuses and credits; these may only be communicated to players who have opted in. Recent changes restrict the use of athletes and celebrities in advertising that could appeal to minors. Responsible gambling requirements are detailed and include mandatory training and self-exclusion tools.

Practical points

Operators that served Ontario players before the market opened have been able to transition, but they were expected to cease unregulated activity in the province. Timelines for AGCO registration and iGO onboarding vary but typically run several months, and technical certification of the platform is a common bottleneck.

Our licensing practice can coordinate AGCO registration, supplier registrations and the iGO agreement for a compliant Ontario launch.