Ontario signals its patience with grey market operators is wearing thin
Top officials told the Canadian Gaming Summit that they will soon take a hardline with unregulated operators taking bets from Ontarians.
As a follow-up to our Wednesday newsletter on the need for Alberta to attract as many grey market operators over to the regulated sector, Ontario is signalling its intentions to go after such non-legal sites.
Ontario has been widely successful in transitioning more than 80% of the grey sites that regularly took bets from Ontarians prior to the open market launch in April 2022 over to the legal sector. Now, more than three years in, Geoff Zochodne, the Senior News Analyst for Covers, has reported that top Ontario officials speaking at the SBC Canadian Gaming Summit in Toronto suggested a crackdown was coming for those operators that have dawdled about coming into the legal sector — or outright thumbed their nose at it.
“The market's matured enough now that people have had an opportunity, and if they're not going to go through the door, it's time that they stop playing in our market,” said Ontario Attorney General Doug Downey during a chat of the fireside variety with AGCO chair of the board Dave Forestell on Wednesday “And I think [iGaming Ontario (iGO)], [the Alcohol and Gaming Commission of Ontario (AGCO)] and the responsible gaming people all understand that that's really important.
“So, I think you'll see a little bit more aggressive approach in that space.”
Back in May, the AGCO asked media platforms to stop taking ads from unregulated operators and singled out Bodog.
Forestell said the province had a three-phase approach to grey market operators:
Create an enticing regulated market with fair taxation and fees, plus the ability to offer online casinos.
Nudge those operators slow to move to the regulated market.
Turn up the heat.
Forestell indicated that phase three was about to begin.
“We've called together banks, payment processors, and others to let them know we publish a list of legal operators,” Forestell said. “So if you're providing banking services, payment services, to somebody not on this list, you are facilitating an illegal operator in Ontario.”
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Stan Cho: Ontario to launch a sweeping gambling review
Stan Cho, Ontario’s Minister of Tourism, Culture and Gaming, took the stage at the conference Thursday, and had some news to pass along.
Tom Nightingale reported for Canadian Gaming Business that Cho will launch a sweeping review of Ontario’s gambling sector — both online and retail.
Cho said the goal is to increase efficiency, economic returns and synergy between online gambling and land-based casinos.
“These are some important times in gaming,” Cho said. “We are seeing iGaming continue to grow, we are seeing the gaming appetites continue to evolve, and we need to monitor these changes carefully and be very adaptive.
“We have challenges and, of course, we also have opportunities to improve. That’s why we’re doing this gaming review.”
Ontario’s horse racing industry, which supports 30,000 jobs in the province — 23,000 of those full-time equivalent positions — is sounding the alarm that online gambling is negatively impacting betting on horse racing.
In our May 16 newsletter, we reported that Andrew Gaughan, the independent chair of Ontario Racing, said Home Market Area (HMA) wagering on horse racing — betting done in Ontario that supports those jobs, purses and horse breed development programs — is “under competitive siege from the advent and proliferation of advertising and aggressive player marketing from well-funded and deeply capitalized licensed digital gaming operators in Ontario and this decline in HMA wagering in the last two years amounts to an annualized loss of about $11-12 million of horse racing industry income. It means we have had to trim about $3 million annually from the respective [Horse Improvement Programs] and budgets in addition to the industry income loss.”
Beyond a gambling review, Cho said he also wanted to ensure that the centralized self-exclusion system, which has been in development at iGO for some time, includes the ability for customers to ban themselves from both online platforms and retail facilities.
While we’re on the subject of iGO, Nightingale also reported that chair Heidi Reinhart said this week a new CEO will be announced soon to replace Martha Otton, who announced her retirement last summer and left the organization at the end of March.
We’ll have more on the Canadian Gaming Summit from Steve McAllister on Tuesday as he speaks with Canadian Gaming Association grand poobah Paul Burns on the Gaming News Canada Show.
Betty signs deal to be an official online casino partner of the Leafs and Raptors
Ontario online operator Betty has announced a deal to become an official casino partner of both the Toronto Maple Leafs and Toronto Raptors.
The partnership is expected to launch in October in conjunction with the start of the Leafs’ 2025-26 season.
From the news release: “The deal reflects a shared vision between Betty and the Toronto Maple Leafs and Toronto Raptors to elevate fan engagement through safe, responsible, and entertaining digital experiences. The multi-year agreement brings together two brands deeply rooted in the fabric of Ontario, combining the thrill of online gaming with the passion of Ontario's biggest sports fandoms.”
Andrew Stokes, MLSE’s senior director of strategic partnerships said in a LinkedIn post: “Betty is quickly emerging as a force in the online casino space, and this partnership brings together two innovative, Ontario-based leaders to advance responsible gaming and entertainment initiatives. We’re excited for the 2025–26 season and beyond!’’
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