May 23, 2025
iGaming in Ontario, or how Operators can successfully obtain a license and not lose their sanity?

However, this was not merely a reform - it was a true tectonic shift in the entire North American gaming industry. The province established a new legal market for online gaming, led by the regulatory authority - the Alcohol and Gaming Commission of Ontario (AGCO) - and supported by a separate organization responsible for commercial oversight, iGaming Ontario (iGO)

Where can you operate with an AGCO license?

If you believe that obtaining a license in Ontario will allow you to operate legally worldwide - we are here to disappoint you. The primary and non-negotiable rule for every licensee is to provide gaming services exclusively to individuals who are physically located within the province of Ontario. The player’s residency or citizenship does not matter (except in cases involving countries on the FATF “blacklist”), but the player must be physically present in the province at the time of gameplay.

To comply with this requirement, operators are obliged to:

· Integrate geolocation verification technologies;

· Block access to games via VPNs (and this is not a “recommendation” – it is a technical must-have).

This is another reason why newcomers may find it challenging to enter this market - the gaming platform must be adapted not only to legal standards but also to the technical restrictions of the jurisdiction itself.

And how much does it cost to obtain a License?

The Alcohol and Gaming Commission of Ontario (AGCO) has implemented a multi-tiered fee structure that reflects the scale and complexity of iGaming operations. In short, obtaining a license is neither cheap nor quick.

To begin with, prepare to pay $100,000 CAD per domain as a non-refundable regulatory fee at the application submission stage. Since this fee is non-reimbursable under any circumstances, we always recommend carefully reviewing all documentation, technical readiness, and compliance with regulatory standards before proceeding with the application.

But there is good news!

AGCO rarely issues outright rejections to applicants. On the contrary, the regulator is generally committed to helping operators obtain a license. If any deficiencies are found in the policies, documentation, or technical platform, the regulator will usually provide specific recommendations and allow time to make the necessary corrections.

However, it is important to note that if the applicant has intentionally concealed material facts, or if the regulator identifies connections to criminal or sanctioned entities, AGCO reserves the right to deny the license without the possibility of remediation, and without refunding any fees already paid.

Next, the cost of certifying the technical platform typically ranges from $10,000 to $50,000 CAD, depending on the system’s complexity, testing requirements, and the approved laboratory provider chosen (e.g., GLI, eCOGRA). The audit of the Control Activity Matrix can cost up to $100,000 CAD, depending on the selected expert. These expenses are also borne by the applicant and are not included in the base regulatory fee.

Additionally, during the review process, AGCO may initiate further investigations - for example, into the backgrounds of shareholders, directors, other key individuals, or cybersecurity protocols. These investigations are invoiced separately. The typical cost is around $15,000 CAD, although this amount may increase if the applicant has a complex corporate structure or is based in a “non-standard” jurisdiction.

Does the jurisdiction require a local company to hold the License?

No, the Alcohol and Gaming Commission of Ontario (AGCO) does not explicitly require the applicant (the Operator) to be a Canadian resident. At first glance, this may appear to open the door to all interested parties. However, there are several important caveats to consider.

Based on practical experience, the following should be kept in mind:

· Operators are required to maintain Canadian insurance coverage, and local insurance providers typically offer such coverage only to legal entities incorporated in Canada.

· You will need a Canadian-dollar (CAD) bank account to process payments with the regulator, which can be difficult to open for non-resident or foreign entities.

· Complex corporate structures involving trusts, foundations, and multi-layered holding companies may be excellent for tax planning, but they are not viewed favorably by the Ontario regulator. If AGCO is unable to clearly identify the ultimate beneficial owners (UBOs) and verify their integrity, your application will not be approved.

· The presence of shareholders or key persons from countries subject to financial monitoring, sanctions, or listed on FATF “grey” or “black” lists will automatically trigger enhanced scrutiny and often lead to license denial or significant delays in the application process.

Can you operate in Ontario’s “Grey Market” before obtaining a License?

Absolutely not. The Alcohol and Gaming Commission of Ontario (AGCO) has a clear and strict position: neither the applicant company nor any affiliated legal entity is permitted to operate in Ontario’s grey market prior to or during the license application process. Any violation of this rule may result not only in the rejection of the application but also in a permanent ban on submitting future applications.

So why is the demand for an Ontario license so high, despite the complexity of the process?

The answer is simple - money.

Gross revenue from online gambling in Ontario reached CAD 3.20 billion (EUR 2.03 billion) in the 2024–2025 period, marking the highest annual result since the legalization of gambling in the province. This makes Ontario one of the largest online gambling markets in North America.

The Ontario gaming license is no longer viewed as an experiment - it is now a serious iGaming hub with profit potential that makes even seasoned operators straighten their ties. Yes, the path is complex, but with experienced partners and a well-structured plan, it is entirely achievable

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