What Happened

Ontario launched its regulated iGaming market on April 4, 2022, becoming the first Canadian province to open its online gambling sector to private operators under a comprehensive regulatory framework. The structure that emerged involves multiple layers of government authority, each with distinct mandates and enforcement tools.

At the top of the hierarchy sits the Government of Ontario, which sets high-level policy through the Ministry of the Attorney General and the Ontario Lottery and Gaming Corporation Act. Below that, two entities divide the practical work of regulation and market operation.

The Alcohol and Gaming Commission of Ontario (AGCO) serves as the regulator — the body responsible for setting standards, issuing licences, and enforcing compliance. iGaming Ontario (iGO), a subsidiary of the OLG (Ontario Lottery and Gaming Corporation), acts as the commercial entity that enters into operating agreements with private operators and manages the provincial gaming revenue stream.

Why It Matters

The distinction between AGCO and iGO is not merely administrative. It reflects a deliberate policy choice about how Ontario wanted to design its market. Rather than having a single government monopoly, or allowing purely private operation, Ontario chose a hybrid: government retains commercial control over the market through iGO’s operating agreements, while AGCO enforces responsible gambling standards, advertising rules, and technical requirements independently.

This dual structure has significant consequences for how the market is overseen:

AGCO’s regulatory mandate includes:

  • Issuing Operator Registrations to companies wishing to operate in Ontario
  • Setting and updating the iGaming Standards (a technical and operational rulebook)
  • Enforcing advertising and marketing restrictions, including rules on inducements
  • Investigating consumer complaints and operator misconduct
  • Imposing penalties including fines, licence suspension, and revocation

iGaming Ontario’s commercial mandate includes:

  • Entering into Operator Agreements that specify revenue-sharing and conduct requirements
  • Managing the technical back-end infrastructure connecting operators to the regulated market
  • Collecting and reporting aggregate market data (though detailed operator-level data is not public)
  • Working with operators on compliance with the terms of their agreements

A key point often misunderstood: an operator must satisfy both AGCO and iGO. AGCO registration is a necessary prerequisite, but the operator also needs an iGO operating agreement to actually launch and offer games to Ontario players. Both gatekeeping functions coexist.

The Federal Dimension

Canadian criminal law remains the ultimate governing framework. Section 207 of the Criminal Code allows provinces to conduct and manage lottery schemes, which is the legal basis on which Ontario constructed its iGaming model. Private operators do not independently “conduct and manage” — they do so under iGO’s authorization, keeping the activity within the federal exemption.

This means amendments to the federal Criminal Code could affect provincial iGaming markets. The 2021 amendment to allow single-event sports betting was one such federal change; any future adjustments to permitted forms of gambling would similarly flow down to provincial regulation.

The OLG Relationship

OLG — the Ontario Lottery and Gaming Corporation — predates iGaming Ontario and continues to operate its own online platform, OLG.ca. iGO is a distinct subsidiary of OLG. This creates a structural tension: iGO facilitates the private market that competes with OLG.ca, while also being part of the same Crown corporation. Ontario policymakers have acknowledged this duality but have argued the regulated private market generates provincial revenue through iGO’s agreements while allowing OLG to focus on its other mandates including retail gaming and charitable gaming oversight.

What’s Next

As Ontario’s market matures, regulatory attention has shifted toward several ongoing questions. AGCO’s advertising standards — updated in 2023 with stricter inducement rules — continue to be enforced and refined. The question of whether Ontario’s model will influence other provinces remains open; Alberta is the most frequently cited candidate for a similar approach, though no comparable framework has yet been enacted elsewhere. Meanwhile, debate continues about whether the dual regulator model produces adequate consumer protection outcomes, with advocacy groups periodically calling for stronger enforcement powers or more transparent market data.

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