Ontario’s fall 2024 budget measures introduced in October included a provision that could see a seismic change to gaming regulation in the province.
While Bill 216, the Building Ontario For You Act, 2014, adjusted the province’s expectations for net profit from gaming as part of its 2024 fiscal review and future outlook, it also introduced Schedule 9 which concerns the status and operation of iGaming Ontario (iGO).
This provision will allow iGaming Ontario to breakaway from its parent organisation, the Alcohol and Gaming Commission of Ontario (AGCO), ending the two firms’ parent-subsidiary relationship.
Since iGO began operations in July 2021, the organisation has been a subsidiary of the AGCO under the Alcohol and Gaming Commission of Ontario Act, 2019.
Yet as a result of Schedule 9, iGO will become an entirely standalone corporation without share capital. iGO specified that it will be a fully independent board-governed agency.
Bill 216 passed first reading third reading on 6 November and received Royal Assent the same day. The iGaming Ontario Act will be proclaimed in early 2025, a representative from the Ontario Ministry of the Attorney General told Canadian Gaming Business.
This spokesperson also told the publication that this change has been introduced to address a concern of a conflict of interest raised by Ontario’s Auditor General.
“Once proclaimed, the Act would also dissolve the parent-subsidiary relationship between AGCO and iGO,” confirmed the spokesperson of Doug Downey‘s office.
“This change would strengthen iGO’s governance and accountability structure and contribute to the continued success of Ontario’s thriving igaming market by positioning the agency as a competitive employer and addressing a conflict-of-interest concern raised by the Auditor General.”
