Ontario AGCO sanctions iGaming operators over unregulated access
The Alcohol and Gaming Commission of Ontario (AGCO) has taken strict action against two licensed iGaming suppliers – Relax Gaming and Arrise Solutions. Both power several casinos worldwide with slots and table games. AGCO discovered they had games appearing on unregulated gambling websites accessible by Ontarians.
According to the commission, this is a breach of their rules and counterintuitive to their efforts to ban unregulated websites. Relax Gaming and Arrise Solutions each received CA$40,000 penalties. Both operate as approved suppliers under Ontario's legal iGaming framework, which means they are expected not to distribute gaming content beyond the province's regulated market.
Ontario continues crackdown on grey-market gambling
AGCO prohibits registered gaming suppliers from providing games to operators that are not licensed in Ontario. According to regulators, allowing such activity weakens the province's consumer protection standards and encourages unregulated gambling activity.
One of the reasons why Ontario launched its regulated online gaming market back in April 2022 was to drive players away from unregulated offshore operators. Regulated websites must comply with strict standards established to protect players from exploitation and other forms of harmful gambling.
Conversely, unregulated websites operate outside Ontario's compliance framework; these websites are not expected to meet any of the province's requirements. Even though players are free to join any platform, the AGCO is keen to discourage non-registered operators by restricting licensed game suppliers to regulated websites.
Suppliers cooperated following the investigation
Both game suppliers were reported to cooperate with investigators after being notified by the regulator. The companies have already moved to restrict Ontario player access to their games on the identified unregulated websites.
The commission understands that it can't prevent suppliers from powering casinos outside the province. However, they expect licensed suppliers to bar Ontario players from accessing their games in offshore casinos.
The enforcement reflects Ontario's focus, which has shifted from operators directly serving players to suppliers, technology providers, and partnership networks connected to unauthorized gambling access. Further scrutiny is expected as the province continues to tighten oversight.
Allan Asava
Commentary for CasinoCanada.com:
“Ontario regulators are broadening enforcement beyond operators to include suppliers connected to grey-market access. This form of tight oversight across the entire iGaming supply chain will likely be a model for emerging markets in Alberta. Companies working within the province will likely face stricter compliance expectations.”
