Which brands will operate under the new Ontario Canada iGaming licensing? How will this affect MGA, Curacao & KGC licenced online casinos? (Image from pixabay.com by Edar)
The official Ontario iGaming licensing is geared up to kick-start a brand-new online gambling zone in Canada. With regulated markets now one of the new trendsetters in casino news, it was only a matter of time before the first of Canada’s 10 provinces would issue an iGaming framework.
It has been a long time in the making, and finally, the Alcohol and Gaming Commission of Ontario (AGCO) and the Government of Ontario are ready to launch. Once up-and-running, the new system will invoke tax and player protection laws to bring tax dollars to, as well as safeguard residents in Ontario.
Familiar iGaming companies are already on board and ready to launch. This includes Play’n GO, LeoVegas, 888, Evolution, Light and Wonder (previously Scientific Games), Kindred, Unibet, and a host of other big brand names. Many of which are also operating in newly regulated state iGaming and sport betting markets in the USA. Evolution, for example, is dominant in US markets and will now look to secure a similar footing in Canadian markets.
Up until now, Ontario law forbid online casino operators from opening up shop in the province. The same law applies across other provinces and territories, except in special circumstances. The same laws do not apply to iGaming software providers such as Evolution (the parent company of Red Tiger, NetEnt, Big Time Gaming, and Ezugi) which holds an AGCO licence as well as Autorite Des Marches Financiers (Quebec), Gaming Policy and Enforcement Branch (British Columbia), Alcohol, Gaming, Fuel and Tobacco Division (Nova Scotia), Alberta Gaming Commission, and the Finding of Suitability (Gaming Terminal Dealer and Gaming Supplier) to operate under certain online gambling operators in these states, but not specifically online casinos entities.
With no framework in place for online casino operators across the country, billions of Canadian Dollars flowed out of the country into the hands of foreign operators with no tax implications or, in other words, no benefits to the Canadian government. Seeing the size of the global iGaming market, and the success of the state-by-state licensing in the US, the Ontario government pursued and open up a pathway to creating a new regulatory framework in the province.
The process: At first, iGaming companies needed to register as an iGaming operator in Ontario. The next step is to enter into an operating agreement with the AGCO subsidiary ‘iGaming Ontario’, which is effectively the issuance of the Ontario iGaming licence.
What does this mean for online casinos holding MGA, Curacao & KGC licensing?
Under the new laws, these companies can no longer offer Ontario citizens games via online casinos that operate under the Malta Gaming Authority (MGA), Curacao eGaming, or the Kahnawake Gaming Commission (KGC) licensing agreements. At first, it seemingly looked as if the AGCO were going to force any brand applying for an Ontario iGaming to disassociate themselves with casinos not operating under the new Ontario iGaming laws.
However, at this time, we are led to believe that as long as these companies have an agreement with online casinos not licensed in Ontario to block IP addresses from the province, then these companies can operate. For online casino companies like LeoVegas and 888, this is a relatively straightforward rule to follow simply because they can open a new casino platform for Ontario users only. On the other hand, for software providers, the task of blocking IPs is one that will not be simple.
Citizens in the remaining 8 provinces and 3 territories in Canada will still have access to online casinos operating under MGA, KGC, and Curacao licensing authorities, while it is unclear as to whether they can also join AGCO approved online casinos. The likelihood is players will prefer the overseas operators for the time being in any case simply because the choice of games from multiple software providers not planning on entering into an operating agreement with iGaming Ontario.
Leave A Comment