The regulation and licensing of online casinos in Ontario is quite complex compared to other regions and countries and we think this is something you need to understand if you want to protect yourself while gaming online in the province.
As you will see below, Ontario online casinos have to go through a two-tier process where they obtain a gambling license and operating agreement from two separate organizations. Keep reading to learn more about the legal framework of casinos in Ontario. This information will be handy when trying to access whether an online casino is operating legally in the province.
As we mentioned, for an online casino in Ontario to legally operate in the province, they have to do two things – obtain a gambling license from the Alcohol and Gaming Commission of Ontario, and make an operating agreement with iGaming Ontario.
Sounds complicated, doesn’t it? The good news is that all of our Ontario
casino guides
feature only online casinos that are reputable and properly licensed in the province. Our team vetoes each brand carefully so you can play safely.
Here’s a brief description of the two organizations Ontario casinos need to deal with. Followed by the steps the sites have to take when getting started:
Organization
What they do
Alcohol and Gaming Commission of Ontario
Regulate the iGaming industry in Ontario and provide licenses.
iGaming Ontario
Manage iGaming operators and work with them to uphold standards and regulations.
1. They Need a Gambling License from the Alcohol and Gaming Commission
An online casino cannot operate legally in Ontario without having a gambling license from the Alcohol and Gaming Commission. The ACGO regulates online casinos and provides licenses based on the laws and regulations outlined in the
Gaming Control Act of 1992. If you check out the online casinos we have recommended here, you will see that they have a license number, usually in their website footer, plus a link to their official license page on the ACGO website.
2. They Also Need an Operating Agreement from iGaming Ontario
A license is the first step. After that, an online casino must acquire an operating agreement from iGaming Ontario which is an organization that reports directly to the Minister of Tourism, Culture, and Gaming of Ontario. This is required as iGaming Ontario is responsible for the management of several aspects of online casinos and ensuring that they comply with regulations outlined by the ACGO. If you look at the online casinos we have recommended in Ontario, you should see that they have an official iGaming Ontario logo somewhere on their site which will have a link to their official agreement details – you can usually find this also in the website footer.
How Does the AGCO Regulate Ontario Online Casinos
The Alcohol and Gaming Commission of Ontario is the primary organization responsible for iGaming. They also regulate other industries such as horse racing and certain retail products. Their main duties and tasks include:
Write, maintain, and uphold standards that sites must comply with.
Inspect and audit the online casinos to make sure they are compliant.
Create new acts and regulations to progress the iGaming industry in Ontario.
Implement the “Mystery Shopper Program” to randomly test sites.
Impose penalties and fines for sites that fail to meet standards and regulations.
Essentially, the ACGO is the organization responsible for overseeing the iGaming industry and setting the initial regulations. They are an official government branch reporting directly to the Attorney General of Ontario and thus also get involved with laws and bills that can affect the industry.
When it comes to licenses for Ontario online casinos, the ACGO has a range of duties including auditing the sites to make sure they comply with regulations – these are undertaken by official ACGO inspectors. They will also do random checks via the mystery shopper program. This is just a small part of what they do though, and much of the actual management and integration of the iGaming sites is left up to iGaming Ontario.
What Does iGaming Ontario Do for Online Casinos
The ACGO is the primary overseer when it comes to the iGaming industry in Ontario and they are responsible for issuing licenses. However, iGaming Ontario is a secondary organization/department that also reports to the provincial government of Ontario – directly to the Minister of Tourism, Culture and Gaming of Ontario. This organization has the following responsibilities:
Oversee iGaming provider contract obligations.
Oversee revenues and taxes relating to provincial gaming activity.
Make sure operators provide responsible gambling tools.
Create and develop anti-money laundering programs and policies.
Provide facilitation for disputes between customers and operators.
This organization was established in 2021 and their mandate is to “conduct and manage iGaming in Ontario provided through private iGaming operators”. This means that they work closely with our recommended online casinos brands and are essentially working to make sure that the providers comply with laws and regulations stated in the
Criminal Code (Canada), the
iGaming Ontario Act, and the
Gaming Control Act.
The main areas they work in include anti-fraud protection, anti-money laundering, dispute resolutions, and revenue and taxes. They are working for the good of Ontario players and one of their key aims is to make sure all customers have access to the responsible gambling tools they need, and are protected from scams and money-laundering operations.
Pros and Cons of iGaming Regulation in Ontario
We think that the regulation of
online casinos in Ontario
is some of the most sophisticated available and we believe it creates a high-quality industry with excellent standards and a thorough licensing process. Here are the main points:
Pros and Cons
Two-tier regulatory system
Excellent standards and regulations
Great protection for customers
No room for unlicensed sites
Fewer choices for customers compared to other markets
Only Ever Play at Licensed Ontario Online Casinos
There you have it – a simple introduction to the licensing and regulation of online casinos in Ontario. To recap, a site must have a license from the Alcohol and Gaming Commission of Ontario, but it must also have an operating agreement with iGaming Ontario. These two things are unavoidable, and as far as Canadian players are concerned, you must only ever play at sites that have these two things.
You can click the links we have here for licensed recommendations, but once you have registered with the sites, you should also see their licensing information in the website footer, and you should notice a link to the iGaming Ontario site also somewhere on the website.
Ontario Online Casino Regulation FAQs
The Alcohol and Gaming Commission of Ontario is a regulatory agency responsible for licenses and regulating the iGaming industry. iGaming Ontario manages iGaming in the province by working with licensed operators.
Yes, if it wants to operate legally in the province. If a site does not have a license then it can’t legally offer its services to Canadian residents in Ontario. A gambling license must be obtained from the Alcohol and Gaming Commission of Ontario.
Yes. iGaming Ontario plays a key role in the online casino industry in Ontario and obtaining an operating agreement from this organization is required if the site wants to legally offer their services in the province.
You must be over 19 to legally register at one of our recommended and licensed online casinos in Ontario. Online lotteries have a slightly lower minimum age requirement of over 18.
