Strengthening Online Gambling Regulation: Ontario’s Move to Crack Down on Illegal Gaming Sites

The Attorney General addressed the Canadian Gaming Summit in Toronto, delivering a pivotal keynote focused on the evolving landscape of online gambling regulation. As the industry expands, the discussion centered on how legislative frameworks must adapt to ensure player safety and maintain market integrity within the digital space.

• Industry looks to pivot to enforcement against unregulated sites three years after market launch
• Ontario market still has 16%-17% of residents using unregulated gaming sites

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Recently, Ontario has ramped up its efforts to tackle illegal gaming sites, with comments from key industry figures like Doug Downey, the Attorney General of Ontario, and Dave Forestell, Chair of the Alcohol and Gaming Commission of Ontario (AGCO). This comes three years after the regulated online gambling market opened its doors.

During a discussion at the Canadian Gaming Summit, Doug Downey stressed the shift in tone regarding illegal gaming operators. He noted, ‘When we launched the market in April of 2022, around 70% of players were participating in the grey or unregulated market. Now, I prefer to refer to this as the illegal market.’ This change of language reflects a reinforced strategy towards enforcement.

In May, the AGCO sent communications urging digital and traditional media to cease advertising unregulated online gambling and sports betting sites like Bodog in Ontario. Recent data from Ipsos, commissioned by AGCO and iGaming Ontario (iGO), revealed that a significant 83.7% of Ontarians who had gambled online in the last three months had done so on regulated sites.

Over 83% Market Channelization in Just 3 Years

The question arises: how will the government enforce compliance and further diminish the 16%-17% of players using unregulated sites? Downey emphasized, ‘The market has matured sufficiently, and if individuals choose not to register with licensed operators, they should stop participating in our gaming market.’

He pointed out that both iGO and the AGCO understand the importance of this issue. ‘Expect a more aggressive approach towards these illegal operations,’ he stated. He also highlighted that some Internet Service Providers (ISPs) have already been pressured to suspend services for illegal sites.

Strategic Overhaul of the Industry

Ontario’s gaming industry is undergoing a strategic review aimed at removing regulatory duplication and streamlining processes across iGaming Ontario, AGCO, and the OLG. Downey addressed the audience and shared that the original mission of the regulated market was to consolidate the gambling activities previously conducted in the grey area, fostering a space for growth and innovation while ensuring player protection.

Forestell added, ‘We are focused on addressing those operating unlawfully while exploring avenues to facilitate legal participation.’ The AGCO’s role emphasizes regulatory oversight rather than direct enforcement, relying on collaboration with financial institutions to curb illegal operations.

He noted that various broadcasters have begun refusing ads from illegal operators in an effort to uphold the integrity of the regulated market.

Conclusion

The Ontario government’s crackdown on illegal gaming sites represents a significant step toward ensuring a safer and more regulated gaming environment. By fortifying the enforcement of laws and fostering awareness of regulated operators, the AGCO aims to incentivize players to shift from unregulated to licensed gaming. This initiative not only protects players but also encourages the growth of a robust iGaming economy in Ontario, setting a precedent for other regions. With continued dedication, the future of responsible gaming looks promising.