In Canada, online gambling is regulated at the provincial level. To this end, it is provincial authorities that vet and license private gambling operators. The process varies between various provinces, as the laws are different. Ontario has the most elaborate online gambling laws and regulations, and it is a more attractive destination than the other regions. So, how does the Ontario slot licensing process differ from other provinces across Canada?
This article highlights the differences between the online slot licensing processes in Ontario and other provinces. Moreover, it outlines the licensing process in a simplified step-by-step guide.
Why is the Slot Licensing Process in Ontario Different?
Indeed, Ontario’s slot licensing process differs significantly from other provinces. There are two main reasons.
First, Ontario has the most elaborate online gambling laws and regulations. In fact, it is the only province with a fully regulated iGaming industry. The gambling market is regulated by the Alcohol and Gaming Commission of Ontario (AGCO) through iGaming Ontario, a subsidiary agency.
Second, and most importantly, Ontario is the only province that has opened its doors to private operators. Many international brands have already set up shop here. For example, BetMGM, Jackpot City, and BetRivers are among the most popular Ontario slots online private operators.
How is the Slot Licensing Process in Ontario Different?
Unlike Ontario, all other Canadian provinces are closed to private operators. They instead run their own government-operated betting platforms based on a monopoly model. This means that no other gambling platform can legally operate there; however, residents still can (and regularly do) access offshore online casinos, albeit illegally.
As such, since Ontario is the only province that is open to private operators, it would be safe to argue that other provinces technically don’t have a slot licensing process. Notably, it seems that most of the other provinces will continue operating their own slot platforms for the foreseeable future. However, Alberta is likely to start licensing private operators later this year or in 2026. Interestingly, the decision to open up the market to private platforms has given residents access to vast and varied Ontario exclusive slots selections.
Important Requirements for Slot Licensing in Ontario
As the province with the most elaborate gambling regulations, private operators must meet certain strict requirements to obtain a license. The requirements touch on the most important aspects of the operators and their operations within Ontario. The most important Ontario slot licensing requirements include the following:
Business Structure Requirements
The company operating the slot platform must be a legal entity. This means that it must be registered as a corporation in Canada or internationally. Additionally, the company’s ownership must be transparent. As such, you must disclose its directors, key executives, and any shareholders with at least 10% of the shares.
Key Personnel Requirements
The key figures behind the betting company must also pass thorough background and integrity checks. For starters, the managers must prove that they have the necessary skills and experience to run the company. Moreover, all named individuals should pass criminal screenings focusing on fraud, financial crimes, and other offenses related to gambling. Credit checks are also required.
Fair Gaming Requirements
Every game on the platform must be evaluated and certified by testing labs approved by AGCO. The most reliable testing labs include iTech Labs, eCOGRA, and GLI. Moreover, every game must have a RNG (Random Number Generator) certification to prove that it is indeed fair. Interestingly, Ontario slots RTP rates are among the highest across all Canadian provinces and gambling markets.
Financial & Tax Requirements
The betting platform must have sufficient funds to run everyday operations, including paying out winnings. As such, the authorities require proof of financial stability, which may include audited financial statements. Moreover, operators must pay a 20% tax on their gross gaming revenue.
Security & Player Safety Requirements
Besides ensuring fair gaming, AGCO also takes other measures to protect players from other dangers, such as data leaks and gambling addiction. To ensure that the platform is safe from data breaches, operators must fulfill the following cybersecurity requirements:
- SSL or TLS encryption technology on all their slots platforms (websites and mobile apps).
- Compliance with payment security standards (PCI-DSS).
- Regular security audits for third-parties.
Moreover, the platforms must provide the following responsible gambling tools to help players struggling with addiction to slots:
- Age verification
- Self-exclusion
- Deposit limits
- Loss limits
- Wagering limits
- Reality checks
Fees
Applicants must pay a one-time, non-refundable application fee, which varies depending on the operator type. Additionally, they must pay ongoing regulatory fees, which also vary based on every operator’s revenue.
Ongoing Compliance Requirements
Most of these requirements are not a one-and-done deal. The authorities conduct regular, continuous evaluations to ensure that operators remain compliant after obtaining a license.
Most notably, they can conduct regular, unannounced financial audits to ensure that the platform is financially stable. They can also undertake general audits of everything, including games and security tools. Moreover, operators must report all unusual incidents, such as game malfunctions or security breaches.
The Slot Licensing Process in Ontario
The Ontario slot licensing process is clear. Here is a step-by-step guide on how to go about it:
1. Vetting
First, the betting platform must prove that it meets AGCO’s strict requirements even before submitting an application. Among other things, it must be a legally registered business entity without any ties to illegal gambling activities.
2. Application Submission
Once you are certain that you are eligible for licensing under Ontario’s laws, you can proceed to submit your application. Application is done online via the iGaming Ontario website. Among other things, you must include the company’s details, business plan, and fair gaming measures in your application.
3. Background Checks
Once the application goes through, AGCO starts by conducting thorough background checks. The checks target various aspects of the betting company, including the key personnel and financial records.
4. Game & Security Technical Checks
If the betting company passes background checks, it must undergo tests on various technical aspects. First, the games must be tested by AGCO-approved labs, such as eCOGRA. Moreover, all other systems must fulfill the player safety and cybersecurity standards.
5. Contract Signing
If everything checks out, the betting company can proceed to sign a contract with iGaming Ontario. The contract stipulates that the platform shall continue to comply with the province’s online gambling laws and regulations. Moreover, the platform must commit to the revenue-sharing terms (20% taxes on gross payments).
6. Paying Fees
Finally, the company must pay the application and regulation fees before obtaining the license. Overall, the entire Ontario slot licensing process takes about three to six months. Remember, ongoing compliance with the regulations is essential, and the authorities have the right to revoke licenses of platforms that violate their laws.
Conclusion
The requirements for applying for a slot license in Ontario are fair, and the process is relatively simple. Technically, other provinces in Canada except Ontario have no slot licensing requirements or processes, since they restrict private operators.
