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Ontario report The AGCO ’ s position on hold -out operators
THE AGCO ’ S POSITION ON HOLD-OUT OPERATORS
While many businesses transitioned away from the once-thriving Ontario grey market to the regulated sector as quickly as possible , others have taken their time or held out completely . Ron Segev and Rebecca Dales of Segev LLP examine what the legal status is for those that are late to make the switch
AS DISCUSSED earlier in this report , Ontario ’ s recently launched market offers third-party sportsbooks and online casinos an opportunity to register with the Alcohol and Gaming Commission of Ontario ( AGCO ) and offer their gaming and gambling products to those in the province .
While considered a success , there remains a number of unregulated operators active in the Ontario market . Is it too late for them to register with the AGCO and join the regulated market ? And how can the AGCO compel offshore operators to cease their unregulated activity and become regulated ?
THE UNREGULATED MARKET According to the AGCO , historically Ontarians have spent nearly $ 1bn annually on online gambling , 70 % of which is estimated to be spent in the grey , unregulated market .
Ontario ’ s igaming regime aims to capture money spent by Ontario players and allocate it towards provincial funding for causes such as education or healthcare . A large portion of provincial gambling revenue is also intended to fund problem gambling prevention , support and other related initiatives . The idea is for the province to work together with non-government entities to offer Ontarians igaming within a safe and regulated market , funnelling proceeds back to the province .
Acknowledging the pre-launch grey market operations , Ontario gambling regulators provided guidance to grey market entities on how to channel out-of-province and offshore gambling , without disruption for the applicants
Ontario report