Illegal Gambling in Ontario Has to Go AG Says

Ontario is certainly one of the best-regulated provinces in Canada, as the jurisdiction was an early adopter of the multi-license model, allowing it to lay the groundwork for others, including Alberta and British Columbia.

Ontario Still Has an Illegal Gambling Market Problem

However, not everything is perfect in Ontario, as the unregulated market is still alive and kicking, with an estimated 16-17% of residents engaging in websites that are not currently regulated by the Alcohol and Gaming Commission of Ontario (AGCO).  

Channelization has been a major issue for provinces such as Alberta and British Columbia, which operate a monopoly-based model, which has led to significant use of such black-market operators. Both provinces are switching to a more sensible model.

The issue was addressed by both the Attorney General of Ontario, Doug Downey, and AGCO’s boss, Dave Forestell, during the Canadian Gaming Summit held in Toronto, Ontario, last week. However, it’s not all that bad.

When the market originally launched, 70% of all players were playing at unregulated gambling websites, but this has improved. However, what has changed is how the AG and AGCO now treat the “grey” or “unregulated” market.

These terms were used before the market legalization, but since Ontario has added its own licensed revenues, the once “grey” or “unregulated” markets have been designated “illegal” to contrast the two.

There Is No ‘Grey Market’ Any More – It’s All Illegal

AGCO has been actively targeting operators and affiliates that have been promoting them, with digital media platforms receiving a notice from the regulators to stop promoting – knowingly or unwittingly – such websites, and prominently Bodog.

According to an AGCO and iGaming Ontario (iGO) survey released a few months ago, 83.7% of people in the province are now playing with regulated entities, up from under 30% before the provincial market re-regulation three years ago.

The goal is clear – ensure that this so-called illegal market is stamped out completely, an ambitious and resource-intensive task that the regulators and the AG’s office are nevertheless prepared to pursue if need be.

Downey has spoken about some of the measures that have been proposed already, including ISP blocks, which are a controversial matter altogether, but not completely off the table. The AG also said that regulators and his office already had the names of potential abusers, who are known and will be acted against.

“I’m not going to name names, but to say, stop facilitating this, or we’re going to have to go down the road of consequences. And I think that’s acceptable. It’s only fair to those who have played by the rules,” Downey said during his Canadian Gaming Summit appearance.

At the same time, Ontario’s iGaming industry is set to undergo a full review as confirmed by Minister for Tourism, Culture, and Gaming OntarioStan Cho, who also spoke at the event.