When Ontario approved its fall 2024 budget measures, at the end of October, it included a provision to make a significant change to the way gaming is conducted in the province.

As well as adjusting its expectations for net profit from gaming as part of its 2024 fiscal review and future outlook, Bill 216, the Building Ontario For You Act, 2014, included Schedule 9, which concerns the status and operation of iGaming Ontario (iGO).

Since its inception in July 2021, iGO has been a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO) as per the Alcohol and Gaming Commission of Ontario Act, 2019.

However, Schedule 9 of Bill 216 revokes that regulation and enacts the iGaming Ontario Act, which officially ends the parent-subsidiary relationship. As a result, iGO will become an entirely standalone corporation without share capital. iGO specified that it will be a fully independent board-governed agency.

Bill 216 passed first reading third reading on Nov. 6 and received Royal Assent the same day. The iGaming Ontario Act will be proclaimed in early 2025, a spokesperson from the Ontario Ministry of the Attorney General told Canadian Gaming Business.

Auditor General raised conflict-of-interest concern

The spokesperson also told CGB that the change has been made in part to address a concern of a conflict of interest raised by Ontario’s Auditor General.

“Once proclaimed, the Act would also dissolve the parent-subsidiary relationship between the Alcohol and Gaming Commission of Ontario (AGCO) and iGO,” confirmed the spokesperson of Doug Downey‘s office. “This change would strengthen iGO’s governance and accountability structure and contribute to the continued success of Ontario’s thriving iGaming market by positioning the agency as a competitive employer and addressing a conflict-of-interest concern raised by the Auditor General.”

The AGCO regulates the offerings of Ontario Lottery and Gaming Corporation (OLG), the government crown corporation that was previously the only provider of approved online gaming in the province. Since the province’s market opened up to others in April 2022, OLG’s commercial competitors have been regulated by the AGCO and, unlike OLG, conducted and managed by iGO.

Now, with the new iGaming Ontario Act, both the Alcohol and Gaming Commission of Ontario Act, 2019 and the Gaming Control Act, 1992 have been amended to remove references to a lottery subsidiary.

iGO launches leadership search to replace Otton

The change to organizational structure comes at a time when iGO is actively looking for a new leader to replace Executive Director Martha Otton, who is retiring at the end of the year.

The iGO announced earlier this month that its board of directors, led by Chair Heidi Reinhart, has begun the formal search for Otton’s replacement.

Whoever is chosen will not be known as Executive Director. The iGaming Ontario Act also changes the title of iGO’s most senior figure to rresident and chief executive officer.