Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario
Online gambling in Ontario: what operators need to know
Ontario opened a regulated online gambling market on 4 April 2022. Operators are registered by the Alcohol and Gaming Commission of Ontario and work under an operating agreement with iGaming Ontario, which conducts and manages the market. It is a market licence for operators that want a place in Canada's largest provincial market and can meet its standards.
More key facts
- Indicative timeline
- Several months from a complete file; the AGCO and iGaming Ontario each have a step
- Structure
- Two steps: AGCO registration, and an operating agreement with iGaming Ontario
Recent regulatory context
Two steps: registration and an operating agreement
An operator needs both. The AGCO registers the operator after reviewing the business, its owners and its controls. iGaming Ontario, an AGCO subsidiary, conducts and manages the Ontario market through private operators and requires an operating agreement with each of them. The two run in parallel and depend on each other.
The Registrar's Standards shape the product
The AGCO's Registrar's Standards for Internet Gaming set the requirements for the gaming site: player protection, responsible gambling, integrity of games, security and advertising. An application includes a gap analysis against the Standards, and the AGCO tests the site against them.
A regulated market with strict advertising and conduct rules
Ontario applies detailed rules to how operators advertise and treat their players. The cost of entry includes the revenue share agreed with iGaming Ontario, which is set in the operating agreement and not published, so it needs to be understood early in the business case.
Why operators choose Ontario
Ontario suits operators that want a regulated position in a large, high-value North American market. The reasons operators give us are consistent:
- The largest regulated online market in Canada, with an established player base.
- A single, published set of standards that applies to every operator.
- A regulator and a market operator whose roles are clear.
- A licence that banks, payment providers and partners recognise in the Canadian market.
- A lawful route into a market that rewards well-run, compliant operations.
The price is a thorough application, a gap analysis against the Standards and a revenue-sharing agreement. Operators that prepare the product and the agreement together avoid delay.
What the AGCO requires
- A legal entity that operates the gaming site, with ongoing responsibility for the site as a whole, including key decisions, compliance and the choice of suppliers.
- An ownership diagram covering holders of 5% or more, with disclosures from the directors and officers.
- Financial statements, tax returns and criminal background checks for the people and entities in the application.
- A site diagram and a gap analysis against the Registrar's Standards for Internet Gaming.
- An operating agreement with iGaming Ontario, negotiated alongside the registration.
- Player protection, responsible gambling and advertising practices that meet the Standards.
If you are not yet sure which licence applies, read B2C or B2B: which gambling licence do you need?.
Documents you will need
The AGCO works from a file. These are the pieces we assemble with you:
- Corporate documents for the licensed company and a chart of the group down to the ultimate beneficial owners.
- Personal declarations and identification for every owner, director and key person, with evidence of source of wealth.
- Evidence of the source of the funds that will capitalise the business.
- A business plan with financial projections, and a description of your games, markets and payment flows.
- AML/CFT policies and a business risk assessment, plus responsible gambling and player protection policies.
- A description of the platform, game integrity and the systems and controls that protect player funds and data.
- The gap analysis against the Registrar's Standards, and the site diagram that goes with it.
How each of the ownership documents is judged is covered in UBO, source of funds and source of wealth.
The application, step by step
- 1
Choose the licence type
Match your products and customers to the licence that fits. Groups that do both B2C and B2B plan the structure before anything is filed.
- 2
Set up the licensed entity and the ownership chain
Set up the entity that will operate the gaming site and map every holder of 5% or more to the ultimate beneficial owners. The AGCO examines this chain first.
- 3
Build the file
Collect the personal and source-of-wealth documents, write the policies for the business you really run, and prepare the business plan and the technical description.
- 4
Prepare the market controls
The player-protection, identification and exclusion controls this market requires, built into the product before you apply.
- 5
File the application and answer queries
Pay the registration fee, submit the application to the AGCO and negotiate the operating agreement with iGaming Ontario in parallel. Answer questions quickly and consistently, because every answer must match the file.
- 6
Complete the pre-launch checks
Independent testing or review of your systems, the final compliance sign-offs and banking and payment onboarding, run in parallel so they do not delay launch.
- 7
Go live and stay compliant
Launch on the approved terms, then run the compliance reporting, audits and notifications the licence conditions require.
Taxes and ongoing obligations
| Topic | What applies |
|---|---|
| AGCO regulatory fee | An annual fee payable to the AGCO for each gaming site, from C$100,000, paid with the application. |
| Revenue share | A share of revenue under the operating agreement with iGaming Ontario. The terms are agreed with iGaming Ontario and not published. |
| Investigation costs | The AGCO may require the applicant to pay the reasonable costs of its investigation. |
| Corporate tax | Canadian and Ontario corporate tax apply to the profits of the operating entity, planned with your tax adviser. |
| Reporting and audit | Regular reporting to the AGCO and iGaming Ontario, and compliance with the Standards, with active supervision. |
Indicative and for orientation. Fees and the revenue share change, and tax treatment depends on your structure. We confirm the position that applies when you file, with your tax adviser.
Banking and payments
Canadian banks and payment providers know the Ontario market and expect the controls the Standards require. They will ask for the ownership and source-of-funds evidence the AGCO examined, and for a clear account of the payment flows.
Plan the payment connections while the application is being prepared, because the operating agreement and the Standards both touch how funds move.
How Cross Border Licensing helps
- Scoping the right licence for your products, markets and group structure
- Building the application file: ownership chain, source of wealth, policies and the business plan
- Preparing your people and your market controls for the AGCO's review
- Handling contact with the AGCO and answering queries consistently
- Planning banking, payments and ongoing compliance alongside the application
Frequently asked questions
Related services and insights
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