Ontario’s iGaming landscape to transform with new bill

Neha Soni November 21, 2024

SiGMA news

Ontario’s gaming landscape is about to undergo significant changes after Bill 216 was passed, which introduces the iGaming Ontario Act. The legislation transforms iGaming Ontario (iGO) into a standalone entity governed by an independent board by dissolving the parent-subsidiary relationship between the Alcohol and Gaming Commission of Ontario (AGCO) and iGO.

iGO has been a subsidiary of the AGCO since its inception in July 2021, as per the Alcohol and Gaming Commission of Ontario Act 2019. However, Bill 216, passed on 6 November, revokes this arrangement. The iGaming Ontario Act should come into force at the beginning of 2025, as per a recent report by Canadian Gaming Business.

The new framework will see iGO operating autonomously without AGCO’s oversight, a move intended to strengthen its governance and address potential conflict of interests highlighted by Ontario’s Auditor General.

The change was welcome by Ontario’s Attorney General Doug Downey, who said it was necessary to ensure the continued success of the province’s growing iGaming market.

“This change would strengthen iGO’s governance and accountability structure and position the agency as a competitive employer, addressing a conflict-of-interest concern.”

Implications of the change

iGO has managed commercial competitors while AGCO has maintained its regulatory role since opening to private operators in April 2022. The split marks a strategic change in Ontario’s gaming market, it will enable iGO to focus on expanding its market share and operational efficiency.

AGCO will continue regulating Ontario’s gaming industry, including offerings from the Ontario Lottery and Gaming Corporation (OLG) and other commercial operators. iGO’s transition is a move signalling the province’s commitment to refining its gaming infrastructure. It marks a strategic move by Ontario to remain ahead of industry trends by addressing governance challenges and adapting to market demands.

The move comes as the province’s iGaming market shows steady growth with a strong first quarter financial results. iGaming handle for Q1 shot up 31 percent to CAD 18.4 billion from last year. About 1.9 million active player accounts were recorded by iGO, highlighting a significant increae in iGaming activity.