Ontario’s iGaming Ontario to Gain Independence in 2025

In a groundbreaking move, Ontario is redefining the future of its iGaming market. The Building Ontario For You Act, 2024 (Bill 216) includes a pivotal provision granting iGaming Ontario (iGO) full independence from its parent organization, the Alcohol and Gaming Commission of Ontario (AGCO). This decision signals Ontario’s intent to lead the way in regulated online gaming, fostering innovation, growth, and global competitiveness.

The transition, set to take effect in early 2025, promises to streamline operations, enhance flexibility, and attract more private operators to one of North America’s fastest-growing online gaming markets.

iGaming Ontario to Operate Independently: A Transformative Step in Ontario’s iGaming Evolution

Key Points:

1. iGaming Ontario (iGO) will become a standalone entity, severing ties with the Alcohol and Gaming Commission of Ontario (AGCO).
2. The shift aims to enhance operational autonomy, attract private operators, and adapt to market changes more effectively.
3. This move positions Ontario as a global leader in iGaming, with the transition set to take effect in early 2025.

Since its launch in July 2021, iGaming Ontario has operated as a subsidiary of the AGCO, managing agreements with private operators under the strict guidelines of the Alcohol and Gaming Commission of Ontario Act, 2019. This structure enabled Ontario to become the first Canadian province to legalize and regulate private operator participation in the iGaming sector, setting a benchmark for other provinces.

However, the subsidiary model often constrained iGO’s operational autonomy. Recognizing this limitation, Schedule 9 of Bill 216 establishes iGO as an independent corporation, governed by its own board of directors. This transformation allows iGO to:

• Make faster, more market-responsive decisions.
• Strengthen its ability to adapt to global iGaming trends.
• Appeal to a broader pool of private operators, fostering competition and innovation.

Legislative Progress and Industry Implications

Bill 216 passed its first and third readings on November 6, 2024, receiving Royal Assent the same day. The rapid legislative progress highlights Ontario’s commitment to advancing its iGaming industry.

The new framework’s implementation in early 2025 ensures a smooth transition as iGO assumes its independent role. This move is expected to not only boost efficiency but also enhance oversight and accountability, strengthening Ontario’s reputation as a global iGaming hub.

Ontario’s Journey to a Thriving iGaming Market

Ontario’s path to a regulated iGaming market began in 2019, with the government’s decision to end the Ontario Lottery and Gaming Corporation’s monopoly on online gambling. After years of preparation, the regulated market launched on April 4, 2022, allowing private operators to enter under agreements with iGO.

Since its inception, Ontario has:

• Attracted dozens of operators, generating substantial revenues.
• Gained recognition as a North American iGaming leader.
• Inspired other provinces, like Alberta, to consider similar legislation.

While Alberta has made some progress in drafting online gambling legislation, its timeline lags significantly, with a 2026 launch appearing more realistic than earlier projections.

Ontario’s decision to grant iGaming Ontario independence is a strategic move that underscores the province’s ambition to dominate the global iGaming market. By creating a standalone entity, Ontario is empowering iGO to operate with greater autonomy, adapt to market demands, and attract new operators.

As the iGaming market continues to grow, this transformation positions Ontario as a model for regulatory excellence, balancing innovation and oversight. With the implementation of these changes in 2025, Ontario is poised to remain a trailblazer in the dynamic world of online gaming, shaping the future of regulated gambling in Canada and beyond.