AGCO Seizes Over 50 Illegal Skill Game Machines Across Ontario

The Alcohol and Gaming Commission of Ontario (AGCO) has intensified its enforcement actions against unregulated gaming devices, announcing that it had removed over 50 machines labeled as skill games in a province-wide inspection this summer.

Province-Wide Sweep

In July and August, AGCO inspectors conducted over 200 inspections at liquor-licensed and lottery retail establishments. These include bars, restaurants, convenience stores, and lottery retail outlets.

During the inspections, AGCO removed over 50 “Prime Slots” terminals that were operating without approval. While “Prime Slots” are marketed as skill games, AGCO testing determined that the machines “ordinarily” rely on chance in their operation, classifying them as gambling devices under Ontario law.

The regulator said the enforcement actions come at a time when the growth of unregulated gambling devices has increased across North America. AGCO cited American Gaming Association data that says there are an estimated 625,000 unregulated gaming machines in the United States.

“While other jurisdictions grapple with the entrenchment of these unlawful gaming machines, the AGCO has taken a proactive stance to ensure they do not take root here in Ontario. Our recent regulatory actions are a clear demonstration of our comprehensive approach and our long-term commitment,” said Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO.

Judicial Backing: The GotSkill? Ruling

AGCO’s enforcement sweep builds on an Ontario Superior Court decision earlier this month, which ruled that GotSkill? machines that also market themselves as skill games amount to gambling under the law.

Justice Shaun S. Nakatsuru ruled that, despite modifications by the manufacturer, the devices do not fall under the definition of games of skill. Instead, they’re a combination of skill and luck.

Evidence provided in the case suggested that the games are structured to promote long sessions and incremental losses. Nakatsuru observed that the design of the game “encourages the playing of GotSkill? in quick successive multiple rounds with the hopes of winning big at some future session.”

That decision provides regulators with a firmer legal footing to act against devices marketed as skill-based but which incorporate chance into gameplay.

Broader North American Debate

Ontario’s stance reflects a broader regulatory and legal struggle over “skill-gaming” devices across North America. In the United States, courts and legislatures have taken sharply different paths.

A handful of states, including Nebraska, Arkansas, Georgia, and Wyoming, have chosen regulation. Similarly, a small number of states, including Kentucky and Virginia, have explicitly banned the use of these terminals. However, in Virginia’s case, legal battles continue to challenge the ban.

Elsewhere, outcomes vary by case. Tennessee judges have ruled that specific machines are illegal. At the same time, Pennsylvania‘s Supreme Court is expected to rule on the status of skill game terminals. The Court agreed to hear state authorities’ appeal of a lower court’s decision that the machines are not gambling devices.

In Kansas, the state’s Supreme Court dismissed a lawsuit by a manufacturer seeking to confirm the legality of its skill game. Meanwhile, Texas courts have been more permissive. Earlier this year, an appeals court reaffirmed a 2024 District Court decision that specific devices do not qualify as gambling machines under state law.

What Comes Next

The AGCO signaled that it will continue its crackdown on unlicensed devices. The GotSkill? ruling strengthens the regulator’s position, meaning manufacturers and operators promoting skill-based machines face greater scrutiny in Ontario.

Ontario’s firm approach could influence other jurisdictions across North America to draw the line between amusement and illegal gambling.