How Is The Casino Market In Ontario Structured?
By a great deal, Ontario’s casino market is one of the best regulated and multifaceted in Canada. The almost seamless combination of government oversight and private sector is commendable. Ontario is also a major force in the fast growing and regulated online casino gambling in the Great White North. To gain a better insight into how the market operates, we’ll need to explore its regulatory framework and key operators. While at it, we might as well dive a bit into the historical perspective of Ontario’s casino market.
Historical Context: A trip in time
Prior to the 1990s, gambling in Ontario was limited to lotteries, horse racing and the charitable model. In 1994, the province commissioned its first commercial casino in Windsor. This lone establishment would flag-off exploits in Ontario’s gaming sector.
By this time, the Ontario government maintained a monopoly on all casino and gaming operations through the OLG. This arrangement sustained through decades. As such operators had to function directly under the corporation or via service agreements.
The Regulatory Framework
At the very core of Ontario’s casino market structure is the Alcohol and Gaming Commission of Ontario (AGCO). Now the AGCO serves as the principal regulator, overseeing all gaming activities in the province. Their framework encompasses compliance with provincial laws, player protection, standards for fairness and integrity.
The AGCO itself operates under the Gaming Control Act of 1992. The body also collaborates with the OLG for land-based casinos and iGaming Ontario for online providers. By extension, the OLG is responsible for overseeing lottery, gaming and all internet gaming operations. In recent years, the OLG has shifted to a more “modernized plan” that introduced private sector operators to manage day-to-day casino functions.
Partnerships on the private sector
Since the restructuring of Ontario’s casino market, private gaming companies have been brought into long term agreements. From this relationship, the Public-Private Partnership model, (PPP) was born. The model allows operators to run casino facilities while the government collects a portion of the revenue and maintains its oversight.
Below, we’ve listed some major private operators in Ontario:
- Hard Rock International
- Gateway Casinos & Entertainment
- Mohegan Gaming & Entertainment
- Great Canadian Entertainment
Companies like the above, make operational decisions at the casinos they oversee. However, they must comply with the AGCO and share revenue with the province.
Economic relevance
As per many reports, Ontario’s casino market generates billions in gross annual revenue. Evidently, it is a key contributor to the provincial economy. A good portion of this revenue supports public programs in education, healthcare and community development. A share of it also goes to the Municipalities that host these casinos, contributing to local infrastructure.
Also, the launch of iGaming Ontario in 2022, boosted the casino gaming revenue significantly. Reports capture that the iGaming sector alone pulled over $1.4 billion in the first year alone.
Fun Fact: Every year, the Ontario Lottery and Gaming Corporation (OLG) funds hundreds of millions of dollars from casino revenue to hospitals, youth programs, and municipal development.
iGaming Expansion
Martha Otton, Executive Director, iGaming Ontario – “Ontario is leading the way in creating a safe, regulated, and competitive online gaming market.”
As suggested earlier, a major transformation of Ontario’s casino market happened after the launch of a regulated iGaming market. Ontario became the first Canadian province to open its online gambling sector to private operators. Today, as captured by https://casinocanada.com/ontario/, there is a vast number of thriving regulated Ontario online casinos to explore.
The entire iGaming initiative is regulated by the iGO being a subsidiary of the AGCO. In the past, the OLG alone could offer online casino games via its PlayOLG platform. Today, even international brands operate legally in Ontario through signed agreements with the iGO.
Structure for responsible gambling
Paul Pellizzari, VP of Global Social Responsibility – “Responsible gambling is not a program — it’s a culture embedded in everything we do.”
As expected, Ontario boasts a well established framework for player protection and responsible gambling. At the core, this framework is shouldered by the OLG and its PlaySmart platform. With this arrangement, casinos are required to implement tools that help users curb gambling behaviour. These tools include self exclusion, deposit limits, wager limits, and even time tracking.
On top of these provisions, the AGCO conducts regular audits to enforce compliance to rules. These audits aim to curb underage gambling, fraud and addiction.
Fun Fact: By law, all Ontario casinos must offer responsible gambling tools. Whether playing online or in-person, Ontario gamblers have access to tools like voluntary self-exclusion, deposit limits.