iGaming Ontario to Operate Independently from AGCO in 2025
The Ontario government has announced a major shift in its regulatory framework for online gaming: iGaming Ontario (iGO) will become an independent entity, officially separating from the Alcohol and Gaming Commission of Ontario (AGCO). This change, set to take effect in early 2025, is aimed at enhancing operational autonomy and fostering growth in Ontario’s iGaming market.
Legislative Milestone
The transformation is part of Bill 216, the Building Ontario For You Act, 2024, introduced as part of the provincial budget this fall. Schedule 9 of the bill establishes iGO’s independence, allowing it to operate as a standalone corporation with its own board. Passed on November 6 and receiving Royal Assent the same day, the bill has paved the way for iGO to take on a more prominent role in Ontario’s burgeoning iGaming sector.
With its new status as an independent entity, iGO is expected to gain greater flexibility in decision-making and responsiveness to market dynamics. This autonomy could streamline operations, foster innovation, and attract more private operators to the province. The move reflects Ontario’s commitment to maintaining its leadership in the global iGaming market while ensuring robust oversight.
Background of iGaming Ontario
iGaming Ontario was launched in July 2021 as a subsidiary of the AGCO under the Alcohol and Gaming Commission of Ontario Act, 2019. Its creation coincided with Ontario’s groundbreaking decision to legalize online gaming and create a regulated marketplace, making it the first Canadian province to open its doors to private operators.
Since its inception, iGO has overseen agreements with private operators, contributing to Ontario’s emergence as a hub for online gaming in North America. However, its subsidiary status under the AGCO has been viewed as a limitation on its ability to operate with full autonomy.
Timeline for Transition
The provisions for iGO’s independence will be implemented in early 2025, ensuring a smooth transition. This change is seen as a natural progression in the evolution of Ontario’s iGaming sector, which officially launched its regulated market on April 4, 2022.
Ontario’s leadership in the iGaming sector has set a precedent for other provinces, such as Alberta, which is exploring its own online gambling legislation. However, Alberta’s progress has been slow, with a possible market launch now projected for 2026.
