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Ontario’s gaming regulator has confirmed that a new standard will take effect October 31 requiring online gambling operators to complete their conversion to the province’s regulated market or cease operations in the province.
The Alcohol and Gaming Commission of Ontario (AGCO) released an update Tuesday (October 4) to the Registrar’s Standard for Internet Gaming that brings an end to the current policy that has allowed companies operating in the grey market prior to the province’s April 4 launch of legal online gambling to continue operating as they obtained registration and approval to join the regulated market.
The AGCO released a proposed standard for stakeholder discussion on August 29, with feedback due by mid-September.
Ultimately, the final language in the standard remains the same as the initially proposed language.
“Operators and gaming-related suppliers must cease all unregulated activities if, to carry out those same activities in iGaming Ontario’s regulated online lottery scheme, it would require registration under the [Gaming Control Act],” the new standard reads.
“Operators and gaming-related suppliers shall not enter into any agreements or arrangements with any unregistered person who is providing the operator or gaming-related supplier with any goods or services if, to provide those goods and services in iGaming Ontario’s regulated online lottery scheme, it would require registration under the GCA.”
In order to continue operations in Ontario after October 31 without violating the rules, operators will need to have completed registration with the AGCO and execute an operating agreement with AGCO's independent subsidiary, iGaming Ontario (iGO).
“Since market launch on April 4, the AGCO has provided a reasonable amount of time for these operators and gaming-related suppliers to join the regulated market in a business-like and seamless fashion,” the regulator said in a statement.
“A significant number of iGaming operators and gaming-related suppliers have registered with the AGCO, entered into an agreement with iGO and are complying with Ontario's regulatory framework.
“This new standard establishes that operators and gaming-related suppliers that are currently active in the unregulated market in Ontario (or have agreements and arrangements with those in the unregulated market in Ontario) must end their activities in the unregulated market to avoid jeopardizing their eligibility for registration.”
The AGCO said that through the October 31 deadline, it is providing a reasonable notice period to support further transitioning to the regulated market, including “making their customers/players aware of potential blackout dates due to pending registration.”
The October 31 deadline comes as the Ontario market is already starting to see a rush of new entrants.
The AGCO has approved registrations for 14 additional operators since announcing the proposed standard in late August, including for prominent offshore brands Pinnacle and Bet99.
The effect of the transition period on Ontario’s online gaming revenues have yet to be truly realized, as the first batch of revenues released by iGaming Ontario last month covered the period from April through June that preceded the transition of several of the province’s most notable existing operators.
Some new entrants to the market have grumbled that in addition to advertising restrictions that prohibit companies from offering inducements such as bonus offers in advertising, the ability to transition without penalty provided a significant advantage to the incumbent grey-market operators, allowing them to maintain their existing customer databases and provide for a seamless transition for those customers, negating any first-mover advantage that new entrants may have obtained.
Alongside the new AGCO standard regarding offshore operators, the regulator on Tuesday also approved further new standards related to live dealer online casino games that the agency said are seeing “growing popularity” but can present potential risks related to physical gaming equipment and the use of live presenters.
Effective October 31, registered online casino operators will be expected to ensure their live dealer gaming supplies are restricted to individuals with a business need and have controls in place to ensure live dealer game presenters do not compromise the integrity of a game.
From April 1, 2023, operators must also ensure that any equipment used in live dealer games are either approved by the AGCO or certified by an approved independent testing lab.
Additional reporting by James Kilsby.
