ONTARIO ONE YEAR ON
market?” 4 This section had key statements that made it clear that one of the early priorities of the AGCO was to encourage grey market operators to apply for Ontario registration such as “facilitating a business-like transition from unregulated to regulated igaming scheme that is fair for registrants,” “we want to ensure a smooth and efficient transition to the regulated igaming scheme for operators,” and to ensure “the transition to the regulated igaming scheme is as seamless as possible – with the goal of having no ‘blackout’ period”. The AGCO encouraged operators to apply before the April 4, 2022 go-live date by allowing operators who applied for registration before April 4, 2022 to continue grey market activities until issued a registration by the AGCO. The AGCO’s welcoming treatment of grey market operators accomplished its objective to provide a safe regulatory space for operators to transition from the grey market. On October 4, 2022, the AGCO determined that enough time had passed for well-intentioned grey market operators to transition to the regulated Ontario market (and likely recieved some pressure from registered operators) and announced that it would be ending the transition period on October 31, 2022 by establishing the following regulatory standard: 1.22 Operators and gaming-related suppliers must cease all unregulated activities if, to carry out those same activities in iGaming Ontario’s regulated online lottery scheme, it would require registration under the GCA. Operators and gaming-related suppliers shall not enter into any agreements or arrangements with any unregistered person who is providing the operator or gaming-related supplier with any goods or services if, to provide those goods and services in iGaming Ontario’s regulated online lottery scheme, it would require registration under the GCA. Note: For greater certainty, and without limiting the generality of any other Standard, this Standard applies to and governs applicants. Therefore, beginning on October 31, 2022, operators applying for registration in Ontario had to stop offering gaming services in Ontario until receiving authorization from the AGCO and
iGO to provide gaming services to players located in Ontario.
After October 31, 2022, any operator wishing to transition from the unregulated to the regulated space in Ontario had to (i) block its Ontario based customers from the time of application to the time of obtaining permissions from the AGCO and iGO; and (ii) convince the AGCO that it should be issued a gaming registration despite operating in the unregistered market following the transition date. Operators who had already applied to the AGCO, including prior to April 4, 2022, and had advanced through the application process, temporarily ceased offering gaming services in Ontario until they received authorization to offer services to players located in Ontario.
Regulatory Sanctions
The AGCO uses monetary penalties as a compliance tool for registrants who have violated the Gaming Control Act, 1992 (the “Act”). The AGCO released information about four monetary penalties issued to registered iGaming operators in the past year. All four penalties were for advertisement and inducement (bonus) infractions related to the Registrar’s Standards for Internet Gaming (Standards). In Ontario, there is a blanket prohibition on the public advertisement of bonuses. Operators can offer bonuses on their gaming site, and through direct advertising and marketing, after receiving active player consent. 5 Operators were fined for the following reasons: 1. Tweeting an advertisement for a $250k launch party where one player would win a $100k casino bonus; 2. Tweeting an advertisement for a $10 casino bonus in return for a $25 bet; 3. Tweeting an advertisement where a user would win 100 free spins for following the operator’s twitter account; 4. Various public transit posters with an inducement to play for free; 5. Various tweets and advertisements offering boosted odds for sports betting; and 6. Various tweets and advertisements promoting “generous welcome offers”.
4 The Guide has subsequently been updated and this section has been removed. There is a similar version of the Guide for suppliers which con- tained a similar section. The version of the Guide referenced in this article can be viewed using the Wayback Machine at https://web.archive.org/ web/20220926065929/https://www.agco.ca/lottery-and-gaming/guides/internet-gaming-operator-application-guide. 5 Standard 2.05. There was also one violation of Standard 2.04 (misleading advertising).
PAGE 8
IMGL MAGAZINE | APRIL 2023
Made with FlippingBook flipbook maker