Ontario’s gaming landscape is set for significant changes with the passage of Bill 216, introducing the iGaming Ontario Act. This legislation separates the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO), transforming iGO into an independent entity governed by its own board.
Since its inception in July 2021, iGO operated as a subsidiary of the AGCO under the Alcohol and Gaming Commission of Ontario Act 2019. However, Schedule 9 of Bill 216, passed on November 6, 2024, dissolves this relationship. The iGaming Ontario Act is expected to come into effect at the beginning of 2025, bringing a significant shift to the region’s gambling framework.
Under the new structure, iGO will function autonomously without AGCO’s oversight. This change aims to strengthen iGO’s governance and address potential conflicts of interest identified by Ontario’s Auditor General. Doug Downey, Ontario’s Attorney General, welcomed the update, emphasizing its necessity for the continued success of Ontario’s growing iGaming market.
This transition is a strategic pivot as Ontario’s gaming market matures. Since opening to private operators in April 2022, iGO has managed commercial competitors while AGCO maintained its regulatory duties. The separation allows iGO to focus on market expansion and operational efficiency without perceived conflicts with AGCO’s oversight.
Despite this shift, the AGCO will continue to regulate Ontario’s gaming industry, including offerings from the Ontario Lottery and Gaming Corporation (OLG) and other commercial operators. As iGO transitions to a standalone entity, Ontario demonstrates its commitment to refining its gaming infrastructure, addressing governance challenges, and adapting to market demands to stay ahead of industry trends.
Ontario’s iGaming market has shown steady growth. iGO’s Q1 2024-25 fiscal report indicated impressive metrics, with the iGaming handle reaching CAD 18.4 billion ($13.3 billion), a 31% increase from CAD 14 billion in Q1 2023-24. Nearly 1.9 million active player accounts were reported, highlighting significant iGaming activity.
With robust growth indicators and a more agile structure, iGO is well-positioned to capitalize on its momentum. As other Canadian provinces look to replicate Ontario’s iGaming success, this development could have wide-reaching implications, serving as a model for implementing regulated online wagering and navigating evolving industry complexities.
