AGCO revokes Toronto retailer lottery licenses over illegal gambling machines
Despite Ontario online casinos taking off, the Commission can’t become complacent with land-based happenings. Due to this, the Alcohol and Gaming Commission of Ontario (AGCO) have revoked the lottery seller registrations of several convenience store operators in Toronto.
The stores were found to have been illegally operating gambling machines, with AGCO stating it will continue to take action against such machines, especially where there is a risk to children.
This license revocation is the latest in a series of moves taken by the regulator to crack down on illegal gambling operations.
A lottery seller license enables stores and other locations to sell official lottery tickets and some other limited gambling products to patrons.
However, AGCO’s rules state that digital gambling machines – that rely on chance – are not permitted in certain locations, including convenience stores and other premises accessible to minors.
After investigation into several outlets in the Greater Toronto region, the AGCO have revoked the lottery seller licenses for several premises, although the number and details of the establishments are not currently available.
Despite the games’ outcomes being primarily based on luck, the Commission claims they are games of skill.
The Commission states the machines, which are Prime Slot branded and readily available to buy online, are luck-based games and do not meet regulations.
According to an AGCO press release, these machines: “Largely rely on chance like traditional slot machines (but) manufacturers have claimed they are games of skill and have installed terminals in convenience stores and other locations where gaming machines would otherwise be prohibited.”
The Chief Executive Officer and Registrar of AGCO, Dr. Karin Schnarr, said: “Unapproved gambling machines have no business being in convenience stores or other locations, particularly those that are available to children and youth.”
Terms of the revocation give the affected lottery sellers 15 days to appeal the decision through application to the Licence Appeal Tribunal.
The action is the latest in a series of moves taken by AGCO to curb illegal gambling activities.
Gambling in Ontario
Ontario legalized online gambling in 2022, becoming the first province to do so. In 2024-25, Ontarian online operators generated $3.2bn in revenue, marking a record year.
The success of the online gambling market has led other provinces, most notably Alberta, to press ahead with similar legislation. While Ontario has the most developed gambling market in Canada, it hasn’t come without its own challenges…
The AGCO have had to take several steps to clamp down on illegal gambling operations, both online and retail.
Earlier this month, they reiterated requirements that ‘free play’ promotions must be free, and that any financial risk faced by players meant that promotions would be misleading and would not comply with standards.
In June, the group posted survey results indicating that regulation, as well as their efforts, have seen access to illegal gambling sites decline.
According to the survey, when the regulated online gambling market launched, some 70% of players were using unregulated sites. Now, approximately 16% of players use sites that do not fall under the purview of the Alcohol and Gaming Commission.
