December 1, 2024

Bill 216 changes the Ontario Gambling landscape

Ontario has decided to rewrite the rulebook for its gambling industry. Bill 216, also known as the Building Ontario for You Act, 2024, is at the centre of this transformation. While the bill touches on several unrelated policy areas, its real highlight is in the iGaming Ontario Act. This section dismantles outdated governance structures, forces accountability, and clears the way for a leaner, more competitive gambling market for Ontario online casinos.

The changes come at the right time. Ontario’s gambling industry, worth billions, has expanded fast—but not without cracks in its foundation. Bill 216 doesn’t just patch the gaps. It tears down a flawed system and replaces it with a model built for scale, integrity, and long-term growth.

What is Bill 216?

At its core, Bill 216 tackles structural flaws that were becoming impossible to ignore. The headline reform is the independence of iGaming Ontario (iGO). Established in 2021, iGO managed commercial agreements with private operators, while its parent body, the Alcohol and Gaming Commission of Ontario (AGCO), handled licensing and regulatory duties.

This dual role raised red flags. The Auditor General of Ontario pointed out potential conflicts of interest between iGO and AGCO. Critics argued the setup lacked accountability and clarity, especially as the market expanded.

Bill 216 makes one thing clear: iGO and AGCO are now on separate tracks. iGO, as an independent entity with its own board of directors, will take charge of managing Ontario’s iGaming market. On its part, AGCO’s focus shifts entirely to licensing and enforcing regulations, removing the overlaps that complicated oversight in the past.

Understanding Ontario’s Current Gambling Landscape

April 2022 changed everything for gambling in Ontario. The province axed OLG’s monopoly and gave private companies the green light to run iGaming. Now, the market’s alive with choices for the players, and the results have been extraordinary.

By the numbers

Revenue Growth: Ontario’s iGaming handle for Q1 2024 reached an astonishing CAD 18.4 billion—a 31% year-over-year increase.
Player Base: The province recorded nearly 1.9 million active player accounts during the same period.
Market Segments: Online casino games dominate the landscape, accounting for 86% of total wagers, followed by sports betting and peer-to-peer poker.

A leading market

Ontario’s approach has attracted attention far beyond its borders. With over 50 operators managing upwards of 80 gaming platforms, the province’s regulatory framework serves as a benchmark for others.

Alberta, for example, is exploring similar legislation but remains far behind in execution. This robust ecosystem didn’t emerge by accident. Ontario’s decision to introduce private operators under a regulated framework created a safe yet competitive environment that balances innovation with oversight. However, as the market grew, so did its complexities—necessitating the kind of structural changes embodied in Bill 216.

Key Changes Under Bill 216

The changes introduced by Bill 216 aim to reshape how gambling is managed, promoted, and experienced in Ontario. Here’s a detailed look at the reforms:

Independent iGaming Ontario

The most significant shift is the complete independence granted to iGO. While the AGCO will remain responsible for licensing and regulatory oversight, iGO will now manage operations autonomously. This separation eliminates any perceived conflicts of interest, ensuring that regulatory decisions and operational practices don’t overlap.

This restructuring also allows iGO to focus on market expansion, innovation, and consumer engagement without the administrative bottlenecks that came with its former subsidiary status. In essence, it’s a move that lets iGO think bigger—and move faster.

Enhanced licensing frameworks

Ontario’s original licensing framework was slow and cumbersome. Bill 216 simplifies the process, cutting unnecessary red tape while keeping high compliance standards.

For operators, the changes remove application ambiguities, making it easier for international firms to enter the market. For regulators, the clearer framework reduces bottlenecks without compromising oversight.

Besides, faster licensing means more competition and innovation in the market, which benefits both the province and players.

Stricter advertising and marketing regulations

Ontario’s open market unleashed a wave of aggressive advertising. Operators bombarded players with promotions, sometimes crossing ethical boundaries. Misleading odds and excessive targeting of vulnerable populations drew backlash. These updates are particularly focused on:

Protecting vulnerable populations, including minors.
Encouraging responsible gambling through transparent communication.
Ensuring that advertising aligns with ethical guidelines.

These measures aim to strike a balance between allowing operators to market their services and safeguarding consumers’ interests.

Prioritizing consumer protections

Bill 216 significantly emphasises player safety, introducing robust consumer protection measures. These include:

Enhanced privacy regulations to secure player data.
Stronger safeguards against problem gambling, such as mandatory self-exclusion programs.
Clearer pathways for dispute resolution between players and operators.

These updates reflect a growing acknowledgement that player trust is essential to the long-term health of the gambling industry.

Revenue and tax revisions

Lastly, the bill revises how gambling revenues are taxed and distributed. By increasing the share allocated to provincial programs, the government aims to ensure that the industry’s success translates into tangible community benefits.

What’s Next?

These reforms don’t just affect Ontario. They’re setting a precedent for other provinces—and even other countries—considering similar deregulation.

For operators

The reforms offer both opportunities and challenges. A clearer regulatory framework and faster licensing processes make Ontario an attractive market for new entrants. But operators will need to adapt quickly to stricter advertising standards and more rigorous compliance checks.

For consumers

Players are the clear winners here. The reforms prioritise player safety and satisfaction, whether it’s better data protection, expanded self-exclusion options, or a more responsive complaint process. Expect a more transparent and consumer-friendly experience moving forward.

For the industry

Ontario’s moves with Bill 216 could shake things up far beyond its borders. Other provinces, whether they admit it or not, are watching. This could be the push they need to finally modernise their outdated systems. Bill 216 isn’t just Ontario’s business anymore—it’s a blueprint that could reshape gambling frameworks across Canada.

Final Thoughts

Bill 216 isn’t some minor tweak. It’s Ontario throwing down the gauntlet. By splitting up market management and regulation, they’ve cut out a lot of inefficiencies while doubling down on consumer protection. This isn’t just about fixing what’s broken—it’s a full-on rewrite of the rules, and it’s hard to ignore the bar they’re setting for the rest of the country.

The coming months will be critical as iGO prepares to operate independently and operators adjust to stricter advertising rules. But if Ontario gets this right, it will set the bar for everyone else.

By Shadrack Kairu