Ontario Completes iGO and AGCO Separation to Refine Gambling Oversight
Ontario’s online gambling sector has entered a new chapter with the official division of iGaming Ontario (iGO) from the Alcohol and Gaming Commission of Ontario (AGCO). As of May 14, the two entities now operate independently under provincial law, following the enactment of the iGaming Ontario Act.
A Structural Reassignment With Legal Backing
The restructuring brings a legal and operational separation between the two agencies. Previously, iGO had been a subsidiary under AGCO, which itself reported to the Ministry of the Attorney General (MAG). With the new law in effect, iGO now answers directly to the Ministry of Tourism, Culture and Gaming—also responsible for the Ontario Lottery and Gaming Corporation (OLG). This new reporting line aims to centralize oversight of the province’s gambling-related revenue-generating operations under one ministry.
The change affects more than just governance. iGO is tasked with overseeing a network of more than 50 registered operators managing over 80 online gambling platforms across Ontario. Its new position under a different ministry is designed to resolve a structural issue identified in an Auditor General report, which cited a conflict of interest arising from AGCO’s dual role as both regulator and parent organization to a revenue-focused body.
Clarity in Oversight Without Disruption to Operators
The Ministry of the Attorney General reassured stakeholders that the shift would not alter how the market operates on a practical level. “The existing operating agreements between iGO and registered operators would be maintained,” MAG stated, also confirming that AGCO will continue to handle regulatory responsibilities, including enforcement and licensing. According to MAG, the split was also necessary to “strengthen iGO’s governance and accountability structure” and help the agency remain “competitive” as an employer.
One of the key benefits emphasized by MAG was that iGO, operating independently, can now adapt more easily to market changes and evolving operational demands: “iGO would also be better positioned to optimise its resources by enabling it to respond nimbly to shifting market management and conditions.”
Leadership Changes and Enforcement Actions
In parallel with the separation, iGO is undergoing leadership transitions. Martha Otton, who has served as Executive Director, has extended her tenure until March 2025, providing continuity as the agency seeks a new President and CEO. This new role will consolidate executive authority under a single leadership position for the first time.
Meanwhile, AGCO remains actively engaged in its regulatory role. Recent actions include a $120,000 penalty against Great Canadian Casino Resort Toronto, stemming from a dealer collusion scheme that netted close to $20,000 in improper winnings. AGCO also finalized a settlement with Woodbine Entertainment after a tragic series of horse injuries and fatalities occurred at Toronto’s Woodbine racetrack. Between late October and mid-December 2024, 19 horses were injured, and 10 were euthanized, prompting race cancellations and regulatory review.
Broader Implications for Canada’s Gambling Framework
Though the shift may not bring immediate visible changes for players or operators, its long-term impact could be significant. Ontario’s separation of regulatory and management functions was shaped in part by legal and operational challenges unique to its model. Under Canadian federal law, provinces must “conduct and manage” gambling directly, which led to the creation of iGO in 2021 as a workaround that allowed private firms to operate under government contracts.
This structure has already weathered legal scrutiny, with courts ruling in favor of iGO’s current format. However, concerns persisted about AGCO’s involvement in both regulation and operational oversight. Now that iGO stands as an independent agency, Ontario hopes to serve as a model for future market reforms in other provinces.
Alberta has already taken cues from Ontario’s approach with its own iGaming Alberta Act. As other jurisdictions examine ways to recover gambling revenue lost to offshore operators, Ontario’s newly formalized structure could become a reference point for balancing public accountability with market competitiveness.
Source: iGaming Ontario Officially Splits from AGCO Under New Act, lcb.org, May 19, 2024.