A set of very broad strokes have recently been painted regarding the function of online sports betting in Ontario, Canada’s most populous province and potentially its most lucrative market for operators when single-game wagering legally begins in the country.
Finalized standards for internet gaming in the province were released last week by the Alcohol and Gaming Commission of Ontario, “a key part of the regulatory framework” that will likely come into force later this year when a competitive iGaming market is targeted for launch.
Those rules include restricting iGaming to those 19 years of age or older (unless they are 18 and just trying to buy a lottery ticket), requiring player complaints to be addressed promptly, and ensuring responsible-gambling policies are in place.
“The AGCO is releasing the Standards before they come into force to allow igaming Operators and Gaming-Related Suppliers to prepare in advance of the launch of their igaming products in the regulated market,” the watchdog said.
The AGCO is pleased to release the finalized Registrar’s Standards for Internet Gaming that are expected to be in force in Ontario at the launch of the new competitive igaming market. https://t.co/V0kjZPBnYw
— AGCO (@Ont_AGCO) July 14, 2021
The iGaming standards will apply to the Ontario Lottery and Gaming Corp.’s iGaming website, the AGCO’s recently established iGaming subsidiary, iGaming Ontario, and to private-sector iGaming operators who want to do business in the province. Some standards will apply to gaming-related suppliers as well.
Certain requirements would apply to only certain types of games, such as a ban on "auto-play features" for online slots. However, it is within this regulated iGaming framework and under these set of standards that companies could offer sports betting to Ontario consumers, as the provincial government has signaled that it wants such wagering as part of the coming competitive market.
The recent passage of federal legislation that will allow provinces to conduct and manage single-game betting also means that registered operators in Ontario could legally offer sports wagering similar to that in the United States.
Companies interested in doing so will have to abide by the AGCO’s standards, the province’s Gaming Control Act and its related regulations, and the commercial obligations included in contracts they'll have to agree to with iGaming Ontario.
Furthermore, sports-betting operators will have to follow all of these rules plus yet-to-be-published ones that will be specific to sport and event wagering. More information on the sports betting-specific standards will be released over the summer, ahead of the expected launch of the competitive iGaming market in December.
"The recently released Registrar’s Standards for Internet Gaming will apply to all registered internet gaming offerings, including sport and event betting," the AGCO Communications Team said in an email to Covers. "However, sport and event betting-specific standards will be added to the Registrar’s Standards for igaming."
Slow and steady
While there is still work to do, Ontario is inching closer and closer to operating what could be one of the more open markets for legal sports betting in Canada. Given this, it is likely to be a market that draws interest from major operators in the U.S., such as DraftKings.
Some companies are publicly getting their Canadian ducks in a row, which could allow them to move quickly into Ontario when all the rules are in place. One such company is Australia’s PointsBet, which already boasts a considerable presence in the U.S. and is positioning itself to be a player in the Canadian market.
PointsBet announced on Wednesday that it has appointed Scott Vanderwel as the first chief executive officer for its Canadian arm. The hiring of Vanderwel, a former executive with media and telecom giant Rogers Communications, follows the naming of Nic Sulsky as chief commercial officer and Chantal Cipriano as vice president of legal, compliance and people of PointsBet Canada.
“Under Vanderwel’s leadership, PointsBet will build a truly Canadian platform that will not only provide a range of diverse jobs in an exciting industry, but also offer Canadian fans an entertaining and engaging experience like no other,” the company said in a press release.
Integrity, ethics and advertising
In Ontario, the PointsBet platform would have to follow the rules recently laid out by the AGCO, which the regulator said were designed with the “key objectives” of the iGaming model in mind, such as consumer protection and returns for the province. Currently, those returns are being eroded by the estimated billions of dollars in wagering that Canadians are doing with offshore and illegal sportsbooks.
The very first standard regards management integrity, and states that there “shall be a commitment to character, integrity and high ethical values demonstrated through attitude and actions.”
Also included are rules around advertising and marketing, which won’t be allowed to target “high-risk, underage or self-excluded persons” to try to get them gambling. The advertising of bonuses or credits for players will only be allowed on an operator’s website.
“Advertising and marketing materials that communicate gambling inducements, bonuses and credits must disclose all conditions and limitations of the offer at its first presentation on the website,” states another standard.
Games offered via the iGaming market can only be provided within Ontario as well, the standards say, unless they are being offered in partnership with another provincial government. Operators will have to set up "mechanisms" to determine where players are and to block "unverified attempts" to play games.
All games will also have to be approved by the AGCO or certified by an independent testing laboratory registered by the regulator before they can be offered by a website. Player deposits will have to be "appropriately authorized" by a bank or other financial services provider, and cryptocurrencies will not be accepted.
"Operators are expected to ensure that the Standards related to the operation of their gaming site are met, regardless of the entity that is carrying out the related activities," the document says. "The Registrar may direct any registered supplier to comply with any additional Standards and Requirements, as considered necessary to enhance and preserve the integrity of and public confidence in gaming in Ontario. The Registrar may also propose additional terms of registration specific to an Operator or other registrant to give effect to the purposes of the GCA (Gaming Control Act)."
Final-ish
The iGaming standards released last week are final but they can be revised as needed, according to the AGCO's spokesperson team.
“We strive for continuous improvement, and will likely release updates from time to time,” the AGCO added.
Consultations were also held recently regarding the registration process and compliance obligations for the iGaming market, final details for which the regulator plans on releasing soon.
"The AGCO is actively considering the feedback received through our engagement processes to date, including those specific to the eligibility/registration and compliance," the watchdog told Covers. “We are currently finalizing our approaches based on this feedback, and we plan to provide final details in August."
