The AGCO (Alcohol and Gaming Commission of Ontario) is bringing what they call a “transition period” that was granted to unregulated sportsbooks to an end, which could result in some operators to close their doors and halt business in the province of Ontario.
On Tuesday, the AGCO (Alcohol and Gaming Commission of Ontario) announced an introduction of a new standard with regards to internet gambling that will be implemented October 31st, a standard which targets unauthorized gambling operators in the Canadian province of Ontario.
To make a longer story short and blunt, this so-called “transition period” is coming to a swift halt. By October 31st, online sportsbooks that are operating and accepting wagers in the province of Ontario which are not abiding by the necessary requirements in its entirety will be legally required to stop accepting bets. Those who do not follow suit will have their website and/or apps listed in the regulators’ “bad books”.
“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 warned. “This requirement extends to applicants for registration in Ontario’s igaming scheme.” – edit!***
Additionally, coming into effect this Halloween October 31st will be the new standard for iGaming relating to the popular ‘live dealer’ games, which include real-life individuals spinning roulette wheels, dealing cards and so on.
The Alcohol and Gaming Commission of Ontario has recognized the rising popularity of these live dealer games and has made the decision to tweak and adjust its rules to tackle any issues regarding unnecessary risks that may turn up due to the use of real people and gambling equipment.
Everyone on the Same Page
It’s obvious that the main goal of the AGCO’s recent announcements is with regards to tackling the issue of the province’s ‘gray area’ operators of the online gambling industry. Being clear and concise about an expiry date can and probably will result in many digital doors of these operators finally closing.
Ontario has long had operators who were operating by the rules and regulations at a federal level but taking bets from residents of Ontario without provincial approval. The provincial government of Ontario has stated that approximately $1 billion a year is spent by Ontario residents on online gambling, of which 70% of that respective gambling activity takes place on ‘gray-market’ websites.
In order to address this problem, the province of Ontario has taken the decision to open a market that is carefully regulated for iGaming which would invite gambling operators of the private-sector including sportsbooks to subject themselves to the oversight of Ontario.
The new iGaming market of Ontario was launched in April and now includes more than 20 legal operatives, with addition to poker sites and casinos. This is a huge jump from what used to be just the government owned Ontario Lottery and Gaming Corp (OLG).
Patience Prevails
The AGCO has now successfully set up a framework for operators in the province to abide by who were previously operating in the unregulated one.
As a part of this framework or process, the regulator AGCO has already began accepting requests for iGaming registrations in September 2021, with those registration requests being the first of two important stages for operators to properly launch in the new regulated market within Ontario. The respective second step includes signing an operating agreement with iGaming Ontario.
The End of the “Gray-Area”
The AGCO has implemented a solution now that is to tackle the issue of operators playing in the ‘gray-area’ market, yet some operators are still accepting wagers in Ontario without meeting all the necessary requirements and approvals. Some of these operators have even received acceptances with regards to their AGCO registrations but have yet to follow the due process required to launch in the new regulated market, upsetting operators that have already followed the respective due process and are now living within the new framework.
The AGCO has now stated that it’s had enough of this, and after further inquiry with the gaming industry and its key players, the AGCO has concluded that its new iGaming standard will be brought into force on October 31st which is soon approaching.