How Ontario iGaming Was Founded

If you live in Ontario, Canada, and like to partake in the popular pastime of online gambling, you’ve probably heard of Ontario iGaming (or iGO for short). That’s because no private operator can legally offer gambling services to players in the province without working alongside this government body. 

If you haven’t heard of iGO, that’s likely because the organization is relatively new, having only launched a few years ago. How it came to be founded, however, is due to a long-time argument that Canadian players have waged with the government to open online gambling in Ontario.

Gambling in Canada

Although gambling in the Great White North has been legal since 1985, some forms of the pastime remained prohibited. Single-game sports bets were among the most popular forms of wagers excluded under allowable gambling. 

As of 2020, however, the Canadian government realized how much money was being funnelled out of the country due to illegal bets in this market. Working on estimations calculated by multiple sources, the government determined that players spent approximately $14 billion annually using illegal online sportsbooks—meaning those that weren’t authorized to accept Canadian players. 

The Canadian government recommended amending the Canadian Criminal Code section that prohibits single-game wagers to combat the growing black market and ensure that the money would stay within the country. Open to public comment, the bill was wildly praised. 

On June 22, 2021, Bill C-218 was officially passed by the Senate. The bill, which allows single-game betting via the amendment to section 207(4)(b) of the Criminal Code, was the eventual success of a battle that had gone on since 2012.

Reacting to the news of the changes in law, each province stated that they would welcome the amendments. The Atlantic provinces aimed to implement single-event betting within a few weeks of the law. British Columbia and Alberta likewise announced their plans to support single-game wagers.

Ontario, however, chose to go one step further by not only permitting this popular way to gamble but also revolutionizing its current iGaming market—hoping to make it safer for players and more straightforward for new providers to enter.

Formation of Ontario iGaming

As part of developing a dynamic and successful iGaming market in the province, the Ontario government launched a separate legal entity to manage iGaming in the region. Through this, iGO was born.

Established in July 2021, iGaming Ontario is a legal subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO), the government body that regulates all alcohol and gambling in the province. Although also a legal entity, iGO was not founded to replace or supersede the AGCO. Instead, it was formed to streamline the processes of the AGCO and providers.

What Does iGO Do?

A common misconception is that iGaming Ontario has been responsible for regulating and licensing all online gambling websites available to Ontario players since its launch. However, this is not why iGO was founded, nor is it one of the mandates it seeks to fulfil. 

The role of regulating and licensing online websites still falls under the reach of the AGCO—the superior body compared to iGO. But iGO does play an integral part in the dealings between these operators (websites) and the AGCO.

Rather than being responsible for regulating these providers, the iGO seeks to conduct and manage the services these private operators provide in the province. To this end, operators seeking to enter the market in Ontario must come to an agreement with iGO that takes the form of a commercial partnership. 

While a partnership with iGO is required to operate in the region, many believe this can replace a working agreement with the AGCO regarding licensing and recognition as a valid provider of gambling services. However, the opposite is true. 

In fact, Ontario online casinos can only approach iGO to form an agreement after they have already registered with the AGCO. After this, iGaming Ontario and the provider can enter into a contractual agreement that allows iGO to undertake specific tasks regarding the market in the province. Among these are the following tasks:

Oversee Revenues

One of iGaming Ontario’s most crucial functions is reconciling all revenue generated by the iGaming industry in the province. Working under its agreement with all licensed operators, iGO oversees this revenue and ensures all required standards and regulations (e.g., payments and taxation) are followed.  

Market Insights

In addition to ensuring that revenue reconciliation is adequately recorded, iGO is responsible for providing market insights into the industry’s current state. These include how many operators are available, their current revenue, and many other data points in market performance reports.

Integration

Entering a market flooded with veteran providers could be tricky for any new operator. As such, iGO strives to facilitate the integration of new gambling service providers into the market. Part of this includes ensuring all regulatory requirements are in place according to what the AGCO stipulates.

Responsible Gambling

Another vital part of what iGO does is implementing responsible gambling requirements for operators. Ensuring that each provider takes special care to make the resources available for at-risk and addicted players helps to maintain a safe and healthy iGaming market where the vulnerable are protected.

Anti-Money Laundering

A pivotal function of any gambling industry is developing and overseeing strict anti-money laundering policies. This is no different with iGaming Ontario, which creates programs that educate and instruct providers on such policies and how they can be utilized to ensure regulation and legal operations. 

Customer Concerns

Apart from the regulatory aid that iGO provides to the AGCO, the entity is also the driving force behind a dispute resolution procedure that attends to customer concerns. Doing this ensures that each customer using the iGaming market can benefit from the best experience and, whenever necessary, resolve their complaints quickly and efficiently.

Conclusion

While iGaming Ontario may be only a subsidiary and holds none of the power of the Alcohol and Gaming Commission of Ontario, it is helping to shape the industry’s landscape in the province. 

Through detailed and targeted objectives, the work of the iGO makes the industry safer and more enjoyable for players while reducing the red tape new operators experience when trying to offer their much-loved services to players.