New Legislation Overhauls Ontario’s iGaming Landscape

The gaming landscape in Ontario is about to undergo significant changes following the passage of Bill 216, which introduces the iGaming Ontario Act. This legislation dissolves the parent-subsidiary relationship between the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO), transforming iGO into a standalone entity governed by an independent board.

An Independent iGO Is a Natural Evolution

Since its inception in July 2021, iGO has been a subsidiary of the AGCO per the Alcohol and Gaming Commission of Ontario Act 2019. However, Schedule 9 of Bill 216, passed on 6 November 2024, revokes this arrangement. According to a recent report by Canadian Gaming Business, the iGaming Ontario Act should come into force at the beginning of 2025, significantly altering the region’s gambling landscape.

Under the new framework, iGO will operate autonomously without AGCO’s oversight. This shift aims to strengthen iGO’s governance and address a potential conflict of interest highlighted by Ontario’s Auditor General. A spokesperson for Ontario’s Attorney General, Doug Downey, welcomed this update, noting it was necessary to ensure the continued success of Ontario’s growing iGaming market.

This change would strengthen iGO’s governance and accountability structure and position the agency as a competitive employer, addressing a conflict-of-interest concern.

Ontario Attorney General spokesperson

This separation marks a strategic pivot as Ontario’s gaming market matures. Since opening to private operators in April 2022, iGO has managed commercial competitors while AGCO has maintained its regulatory role. The split enables iGO to focus on expanding its market share and operational efficiency without perceived conflicts with AGCO’s oversight responsibilities.

The Move Could Have Significant Implications

Despite this shift, the AGCO will continue to regulate Ontario’s gaming industry, including offerings from the Ontario Lottery and Gaming Corporation (OLG) and other commercial operators. As iGO transitions to a standalone entity, the move signals Ontario’s commitment to refining its gaming infrastructure. By addressing governance challenges and adapting to market demands, the province aims to remain ahead of industry trends.

The move comes as Ontario’s iGaming market retains steady growth. iGO’s Q1 2024-25 fiscal report revealed impressive metrics.  iGaming handle for the period skyrocketed to CAD 18.4 billion ($13.3 billion), up 31% from CAD 14 billion in Q1 2023-24. iGO revealed there were almost 1.9 million active player accounts, highlighting a significant increase in iGaming activity.

With robust growth indicators and a more agile structure, iGO is well-positioned to leverage its H1 momentum. As other Canadian provinces seek to emulate Ontario’s iGaming success, this development could have far-reaching implications, serving as a blueprint for how other jurisdictions implement regulated online wagering and navigate evolving industry complexities.