In November 2024, the Ontario government enacted significant legislation to facilitate iGaming Ontario’s separation (iGO) from the Alcohol and Gaming Commission of Ontario (AGCO).
Effective in early 2025, this landmark move will transition iGO into an independent, board-governed agency.
It is designed to enhance iGO’s governance, accountability, and ability to adapt to the evolving online gaming market.
What Is The iGO?
iGaming Ontario, commonly referred to as iGO, was established in July 2021 as a subsidiary of the AGCO. Its primary role has been to oversee Ontario’s online gaming sector, including managing agreements with private operators who offer iGaming services to players across the province.
While iGO has managed day-to-day operations, the AGCO has maintained regulatory oversight, ensuring compliance and integrity across all gaming activities in Ontario.
This structure aimed to balance operational management and regulatory enforcement within the province’s gaming ecosystem.
However, AGCO’s dual role as both a regulator and the overseer of its subsidiary, iGO, has led to concerns about potential conflicts of interest, prompting the Ontario government to explore alternative governance models.
Bill 216
In November 2024, the Ontario government introduced Bill 216, also known as the Building Ontario For You Act 2024, which includes Schedule 9, titled the iGaming Ontario Act, 2024.
This legislation is the foundation for the iGaming Ontario separation by dissolving the parent-subsidiary relationship between the Alcohol and Gaming Commission of Ontario and iGO.
Bill 216, passed and given Royal Assent on November 6, 2024, lays out provisions to transition iGO into an independent agency. As a board-governed organization without share capital, iGO will operate autonomously, free from structural ties to the AGCO.
The iGaming Ontario separation comes at the same time as a number of other gambling-related bills are being passed through the Senate, such as Bill S-269, more known as the Sports Betting Ad Bill.
Ontario’s desire to strengthen governance within its gaming sector while ensuring transparency and competitive practices prompted the decision to enact these changes.
iGaming Ontario Separation: How Will It Work?
The separation between the two organs involves the implementation of Schedule 9 within Bill 216. This critical measure will take effect in early 2025, officially severing the relationship between iGaming Ontario and the Alcohol and Gaming Commission of Ontario.
Once implemented, iGO will no longer function as a subsidiary but rather as an independent entity with its own board of directors, enabling it to focus solely on managing Ontario’s online gaming market.
This structural change addresses concerns highlighted by Ontario’s Auditor General, who pointed out the potential for blurred lines between operational management and regulatory enforcement.
By establishing iGO as a standalone entity, the government aims to ensure that each organization can focus on its respective mandate without overlap or conflicts.
Future Implications for iGO
iGaming Ontario’s separation from AGCO and path to independence marks a new chapter for the province’s gaming industry.
As a standalone corporation, iGO will be governed by its board of directors, which will oversee its operations, strategic direction, and performance.
This move is expected to empower iGO to adapt more efficiently to market trends and challenges, enhancing its ability to foster growth within Ontario’s iGaming sector.
Since its inception in 2021, iGO has been instrumental in forging agreements with private operators, bringing internationally recognized brands into Ontario’s regulated iGaming market.
With its new independent status, iGO is poised to strengthen these partnerships while attracting additional operators, ensuring a competitive and dynamic online gaming landscape.
Legal Ramifications
The iGaming Ontario separation reflects the Ontario government’s commitment to refining its gaming infrastructure to serve consumers and operators better.
By splitting iGO from the AGCO, the province aims to ensure robust oversight while maintaining a clear distinction between regulatory and operational responsibilities.
The AGCO will continue to act as the regulator for all gaming activities in Ontario, ensuring compliance with provincial laws and protecting players from potential risks.
This includes enforcing strict standards for consumer protection, data security, and responsible gambling practices. Meanwhile, iGO’s independence will enable it to streamline decision-making processes, adapt to market demands, and focus on fostering innovation within the industry.
This separation also positions Ontario as a leader in the global iGaming market by creating a governance structure that aligns with international best practices.
Enhanced governance and accountability are expected to boost confidence among private operators, potentially leading to increased investment and growth in Ontario’s gaming sector.
Supporting Market Growth
iGO’s independent status allows for greater flexibility in responding to market opportunities.
By separating its operational focus from AGCO’s regulatory oversight, iGO can prioritize strategic initiatives aimed at expanding the iGaming market. This includes exploring new game offerings, fostering innovation, and enhancing player experiences.
Additionally, the separation underscores Ontario’s commitment to fostering a competitive environment that benefits both players and operators.
A transparent and well-governed market is more likely to attract international brands, driving further economic benefits for the province.
Enhancing Player Trust
For players, the separation of iGaming Ontario from the AGCO ensures a more transparent and accountable gaming environment.
With the Alcohol and Gaming Commission of Ontario maintaining its role as a regulator, players can trust that operators adhere to strict standards for fairness, security, and responsible gambling.
Simultaneously, iGO’s independence allows it to focus on building partnerships and delivering high-quality gaming experiences, ensuring that players have access to safe and entertaining options.
Expectations For 2025
The Ontario government’s decision to enact the iGaming Ontario separation is a significant milestone in the evolution of the province’s gambling sector.
By transitioning iGaming Ontario into an independent, board-governed agency, the province aims to enhance governance, accountability, and market competitiveness.
This structural change addresses concerns about potential conflicts of interest and positions Ontario as a leader in the global iGaming industry.
As the separation takes effect in early 2025, both iGO and AGCO will play distinct but complementary roles in ensuring the success of Ontario’s gaming ecosystem. For operators and players alike, these changes promise a more transparent, innovative, and player-focused market.
By embracing this new governance model, Ontario is poised to strengthen its position as a hub for regulated online gaming, setting a benchmark for other jurisdictions to follow.
